By Gina Jochimsen
It was among the most enthusiastic of promises made by then candidate Trump during the 2016 campaign trail- tax reform. As President, he is persistent in keeping that promise by pressuring House Republicans to create a pro-growth tax plan.
Unveiled yesterday, the GOP tax plan looks promising and Republicans appear unified on the rollout.
According to CNN Money, the tax plan includes, “lower rates for businesses, fewer income tax rates for individuals, a much larger standard deduction and child tax credit and a repeal of the estate tax.”
The key words here are “lower” and “fewer.” If Americans can keep more of their hard-earned money as a result of lower income tax rate, that means more money to spend, however they want to spend it. This is a staple of freedom and individualism we have always prized.
I think this particularly should appease many millennials. We work hard. Those of us that are lucky enough to have a job and earn our money find that money taken out of our paycheck every week is disappointing. I also think we can agree that taxes may be necessary but if we have more of our own money to spend, the economy will get the push it needs. The money we make should not have to go directly to the federal government.
Lower rates for businesses are tremendous as well! It’s simple- when a business is taxed less, it can hire more individuals while also paying them what they deserve. This means more people working and a decrease in poverty. Resulting in less people on welfare in the long run. This is what growth looks like. It will help low income workers keep their money in their pocket.
A piece by CNBC notes the fact that our corporate tax rate would be lowered to 20 percent. Currently it is among the highest in the world at 35 percent. Many on the left argue that it is not high enough and corporations should be paying more. The lower tax rate will ultimately help the workforce and save you money just as the lower rates for small businesses will. When people keep the money they make, everyone wins, and that is empowering. An article in Forbes mentions that the changing corporate rate will be a blow to federal spending, but is that bad thing? I would argue no. This just means the government prioritizes what it spends tax money on. Fiscal responsibility in a nutshell. This piece has a lot of vital information as well so be sure to read all the way through!
In the words of one of my favorite Economists, Milton Friedman:
“I am in favor of cutting taxes under any circumstance and for any excuse, for any reason, whenever it is possible.”
Gina Jochimsen is a senior at The University of Iowa. Majoring in Journalism and Political Science, she has interned on several presidential campaigns in Iowa. Gina is also involved in a student organization called Turning Point USA, helping to engage students on issues and create discussions on limited government and fiscal responsibility.