A generation ago, President Reagan set a very high bar. His tax cut plan gave a break to every taxpayer, no exceptions. It produced dynamic economic growth. His tax plan paved the way for prosperity.
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Which begs the question: Is the Trump-Republican plan “Reaganesque?” Does it meet Reagan’s high bar?
My answer is, no, it doesn't.
Here are the facts: The plan we've seen is heavily weighted toward tax cuts for business. Good. That will help the economy grow.
But it does not give a tax cut for all taxpayers. The people at the top of the income tree, the un-loved 1%, do not get a tax rate cut, and because some deductions are going away, many will pay more into the Treasury than they do now. Even some middle income people will pay more.
That’s why the Trump-GOP plan is not Reaganesque. The people who pay most of the tax now, do not get a break. That makes 4% or 5% growth next year much less likely.
Hold on a moment: The plan now goes to the Senate. We are hearing it may look even less Reaganesque when they’re done with it. Not good news.
So far, there's been no fall-out on the market. Still way up from where it was a year ago.
But in politics, a different story. There is great disappointment that the Republicans couldn't come up with a tax cut for everyone. Maybe that’s one reason for the big Democrat win yesterday.
It’s been a year since Donald Trump won the White House. A year in which so many Republicans lost faith in Ronald Reagan’s basic message that if you cut taxes for everyone, you grow the economy.
Very disappointing. Not what was promised.