The first year's cut amounts to $139 million. To all the South Carolinians listening tonight: that's $139 million that would have gone to government, and will stay with you instead.
Like Presidents Reagan, Kennedy and now Trump, I believe that low taxes spur economic growth and prosperity. Yet, South Carolina currently has the highest marginal income tax rate in the southeast--the 12th highest in the nation. Seven states have no income tax at all. Taxes of all kinds at all levels add up--little by little--to smother growth.
We must act. We must heed the lessons of history. We must respect the right of the people to their own money, for their own purposes, according to their own priorities.
A: With all due respect, your experts are dead wrong. I have studied the FairTax for a long time. First of all, it is 23%, but it replaces all federal income taxes; and it replaces the payroll tax. Depending on how you define a windfall for the rich, it's also a bonanza for the not-so-rich, because of the prebate. Every family deserves to get a prebate to offset taxes that would be paid on essential goods and services. That levels the playing field, in my opinion, and especially gives the not-so-rich an advantage that they don't have today under our current system. So yes, I strongly support totally replacing the current code with the FairTax.
A: I didn’t say that I was wrong. I said that the reason why I opposed those tax cuts was because we didn’t rein in spending. And the fact is the tax cuts have dramatically increased revenues. If we don’t make them permanent, then every business, farm and family in America will have to adjust their budgets to what is in effect a tax increase.
In 2001, I proposed massive tax cuts, but I also proposed to rein in spending. Spending is out of control. We didn’t lose the 2006 election because of the war in Iraq; we lost it because we in the Republican Party came to Washington to change government and government changed us. We let spending go out of control. We spent money like a drunken sailor, although I never knew a sailor drunk or sober with the imagination of my colleagues.
A: The simplest way is an active FairTax. That’s the first thing I’d love to do as president, put a “Going Out of Business” sign on the Internal Revenue Service and stop the $10 billion a year that it costs just for them to operate. A FairTax would eliminate the alternative minimum tax [& many other taxes].
“A FairTax would eliminate the alternative minimum tax, personal income tax, corporate tax, & al the various taxes that are hidden in our system & Americans don’t realize what they’re paying.”The FairTax proposes a “prebate” to soften its impact on low-income persons--a monthly check for the amount of tax paid up to the poverty level. But any sales tax also would lower taxes for those upper-income persons who save large portions of income that would be taxed under current law.
Pres. Bush’s bipartisan Advisory Panel on Tax Reform rejected the idea, saying it would substantially increase taxes for 80% of taxpayers. The panel calculated that a sales tax would have to be set at 34% of retail prices, and the monthly cash prebate would amount to the largest entitlement program in history, at least $600 billion per year.
A: I want to make it very clear that I’m not going to raise taxes. As governor of Massachusetts, I made it very clear there, and I did not raise taxes. We faced a huge budget gap, but I recognize that raising taxes could lead to a slowdown in our economy, so we didn’t do it. We balanced our budget, and that’s exactly what I’ll do with the federal government.
Tax cuts have always led to a growing economy with higher revenues than before the tax cut. In 1998 when our Republican House and Senate enacted a capital gains tax cut from 28% to 20%--a 29% cut: federal revenues from this source doubled. Capital gains and marginal rate tax cuts encourage people to work, save and invest.
Tax cuts allow small business owners to plow their money back into the business, which creates growth, expansion, and jobs. Unemployment goes down and wages go up. Increases in supply and productivity reduce the costs of goods and services, and improves their quality. Lower income citizens are then able to purchase higher quality goods at lower prices: with higher wages! Tax cuts increase the quality of life for those at the lowest rung of the economic ladder. This is compassionate conservatism!
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