As he advocates for a long time for economic policies in favor of growth, we write to advise President Donald Trump against any tax proposal that increases the individual tax rate of income beyond their current level of 37%.
Recent rumors of an increase to 40% or would be representative of a dangerous deviation of the principles of prosperity and prosperity driving that have driven the United States as the years of Reagan: that is, tax rates to promote the economic perspective.
History has demonstrated again and again to reduce marginal tax rates, particularly in individuals, entrepreneurs and small businesses, unleashes economic growth, expands the tax base and finally generates further Government income, no less.
Increasing tax rates, on the other hand, almost always has the same three consequence: less income than expected, slower economic growth and a reduced income tax paid by the highest high income filters Hige Hige higher.
President John F. Kennedy President Ronald Reagan, the most successful periods of economic expansion in US history significantly followed Reductions In tax rates.
The 2017 tax and job cuts law, signed under Trump’s leadership, was no exception.
The lowest corporate income tax rates in the TCJA caused an investment, boosted salary growth and increased job creation.
On the contrary, increase the higher tax rate the wrong message to employment creators, the owners of small businesses and investors of which they are presented as transfer entities and would be direct for such an increase.
Penalize the same engine of employment creation in this country would be a false economic step with consequences of great disagreement.
In fact, instead of considering the increases, we should be looking for opportunities at this time to further reduce rates and compress income tax supports.
In addition, reducing the 15% capital gains tax would boost investment, unactive capital would unleash and provide a very necessary impulse for long -term economic growth.
As a political issue, we have soh what happens with the support of voters for the Republican party when the party increases tax rates.
The 1990 tax increase under President George Hw Bush contributed to a slow recovery and prepared the scenario for political policy.
The increase in fiscal charges in the most productive segments of the economy weakens growth and discourages risk taking and innovation.
We urge President Trump to stay faithful to the long -standing commitment of the Republican Party with the low tax rates and a vibrant free market economy.
Instead of backpaling in these basic principles, now it is time to double the policies that promote growth, competition and business dynamism.
Increasing the superior tax rate would undermine those efforts and send a signal of withdrawal from the economic philosophy that has turned the United States into the most prosperous nation in history.
The 2017 tax and jobs reduction law was an excessive economic success.
We hope to continue working with the president so that these tax cuts are permanent, and reduce tax rates for the US economy to be large again.
Steve Forbes, Arthur Laffer and Stephen Moore They are co -founders of unleashed prosperity.