If you ask the average American citizen whether the United States had better economic and job growth when taxes were lower or higher, most would say the former. However, as history has pointed out, the best economic and job expansion of the United States occurred when the top tax rate was well over 70 percent. That the United States was the only major power untouched by World War Two was also a factor as the rest of the industrialized world was in shambles. However, in recent history, Republican attempts at what we call today "trickle down" economics (Reaganomics for fans, Voodoo Economics for detractors) has led to the false premise that the economy flourishes when taxes are cut, especially for the top. While there was a Reagan expansion in the 1980s, tax cuts played little part. What really helped the economic uptown in this period was the proliferation of credit card access, a drop in gas prices and a willingness among both political parties to run up the national debt. When George W. Bush attempted the same policies with two tax cuts in 2001 and 2003, the economy and job front remained largely static and a great recession occurred because of flawed policies enacted in the Clinton and Bush II administrations. The largest recent long term job growth periods occurred after major tax increases were enacted. The first occurred at the end of the Bush I administration. This was reinforced by the Clinton economic plan in 1993. The largest economic and jobs expansion in recent United States History occurred then. In 2013, the Obama Administration and Congress allowed the top income tax rates to rise again. Job Growth accelerated after that as well.
So when you hear the Trump Administration and its allies in the political and economic sector boast that their tax cut plans (which will probably largely benefit corporations and the wealthy) will stimulate economic and job growth, research the history of when such promises were made in the past and come to an informed decision.
What does country needs is progressive pro growth tax policies that expand the middle class and moves our nation forward. Some of these policies, as mentioned in previous posts would include.
For Individuals and Families
* Expansion of the Child Tax Credit
* Expansion of Charitable Contributions
* Expansion of College Tuition Tax Credits for students that devote two years of national service (along with separate increases in Pell Grants and National Apprenticeship Programs )
* Expansion of Allowable Deductible Medical Expenses
* Expansion of Allowable Work Travel Deductions
* Expansion of Green Energy Purchases for both the home and motor vehicles
* Expansion of the Earned Income Tax Credit (along with increases in the minimum wage to a living wage)
For Businesses and Corporations (small and medium)
* Expansion of Tax Credits for Research and Development
* Expansion of Tax Credits for Environmental Infrastructure Upgrades
* Expansion of Tax Credits for Hiring and Business Expansion
Now there should also be tax increases as well that are largely targeted at the wealthiest. These include:
* An increase in the gas tax that would go towards our nations transportation infrastructure and its maintenance.
* An increase in the maximum payroll amount towards social security contributions.
* An increase in the individual sales tax on purchases of $500.00 or more.
* A national lottery whose proceeds would be allocated with half the proceeds going to reduce our national debt and the other half towards rebuilding our traditional and charter public schools.
This is a Progressive Pro Growth Tax Plan that expands the middle class, stabilizes social security, and provides for our transportation and educational infrastructure. These policies would work. How do we know. Because smaller versions of these policies have demonstrated their effectiveness before.
https://www.nytimes.com/2017/08/30/us/politics/trump-missouri-tax-plan.html?smid=fb-share
https://www.facebook.com/senatorsanders/videos/10156280148917908/
https://www.vox.com/policy-and-politics/2017/8/30/16220134/universal-basic-income-roosevelt-institute-economic-growth
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