Republicans can finally be proud of Republican Congressmen and their eventual support of the President’s tax reform plans. Talk about a great Christmas present!
The actual tax reform portion of the bill does only a little to reverse the Democrat’s attack on high earners. You rarely find a liberal who admits that the top 10 percent of earners actually pay more than two-thirds of all income taxes collected. It is hard to deliver income tax breaks to low and moderate income tax payers who already pay next to nothing in income taxes.
The big deal is that the corporate tax rates are being reduced, which will make American companies more competitive in the world economy, creating more jobs and income for Americans going forward.
One of the great ribbons on the present was a reduction in mortgage interest deductibility. Remember the collapse in housing prices leading to the great recession? The housing price inflation that led to the boom was fueled by a government-encouraged relaxation of lending standards and mortgage interest deductibility. While realtors and house flippers profited, house buyers were priced out. Canada didn’t experience the housing price collapse because their interest was never deductible. Reducing deductibility is a good thing.
The bow on top is the elimination of the health insurance mandate. Nothing is more un-American than paying a penalty for not buying an overpriced health insurance mandated by the government. And, no, you could not keep your doctor. Congressmen Thune, Rounds, and Noem: Ya done good!