It will be “fascinating” to see Democratic presidential candidates continue to try to explain over the next 11 months that raising taxes and lowering wages is “the best thing” for American families, economist Stephen Moore said ironically in an opinion piece for Bizpac Review.
It will be a show, added the political analyst, to see how they try to convince the public that with new taxes on wealth, carbon, energy, or income tax rates to 70%, Americans will enjoy greater well-being and prosperity.
“Payroll taxes would rise to pay for Social Security benefit expansions and Medicare for All,” he added.
But the reality seems quite different based on the results since President Donald J. Trump established his historic tax cut in 2017, which has “worked better for workers and middle-class families than we even expected,” Moore said.
“Middle-class incomes have hit an all-time high, as have the stock market and employment. Tax revenues are also higher than ever before—with the tax cut in place,” Moore stated.
Nevertheless, Democrats will continue to say that their “first resort” also involves raising taxes on “employers, investors, businesses, and the rich” while considering this measure even a “kind of badge of honor,” he continued.
Tax cut 2.0
Now, “[President] Trump and the Republicans need a new tax cut plan” to win more voters, Moore said proposing some practical ideas.
Moore offered some advice that could help the economy while benefiting the working class, the main objective of the Trump administration’s reforms.
- Eliminate taxes on savings accounts. The idea is not his, as he acknowledged, but that of one of his Heritage Foundation colleagues, Adam Michel, who has no hesitation in asserting that Americans with incomes below $150,000 could deduct up to $10,000 each year.
- Reduce middle-class tax rates from 22% to 15%.
- Eliminate taxes on stock market profits, allowing such profits to be reinvested in new businesses at no extra cost.
- Private Social Security accounts, into which workers could enter a small amount, such as 2% of their payroll taxes. “This would allow for much higher lifetime returns from this money than conventional Social Security would offer,” Moore concluded.