Tax Cuts? What Tax Cuts?

  • 3 November 2014
  • jwoodie
President Ronald Reagan - Tax Cuts What Tax Cuts

Once upon a time, Republican candidates could be counted on to talk about the need to cut taxes and shrink the federal government. This year, however, the words "tax cuts" are rarely heard:

"Some lawmakers - including ones no one would confuse for moderates - said they're less interested in tax cuts than tax reform, a subtle distinction that has major political and policy implications.

"republicans">Republicans can cut tax rates in a Tax Code overhaul, but not without making wrenching changes elsewhere, as they'll need to replace the revenue lost to the Treasury. That means there will be losers - lots of them - unlike, say, with George W. Bush's tax cuts, when the main question facing Republicans was how to distribute the goodies."

In other words, because some voters might get upset by talk about cutting government, politicians won't say a word about cutting taxes, either. The result is higher taxes and even bigger government:

"Lawmakers permanently extended most rates, which were set to rise without action, though they allowed the top rate to increase to 39.6 percent. That, along with new taxes within obamacare">Obamacare, pushed the actual top rate to almost 45 percent.

"Though still low by historical standards, that's the highest since the Reagan administration."