In last week’s First Word article, the College Democrats expressed concern at Trump’s tax plan. Chloe DeVitis argued that the tax plan benefits the rich and large corporations while small businesses suffer. However, Trump’s tax plan is a win for all individuals and companies, including families and small businesses.
Trump’s decision to lower the corporate tax rate from 35 percent to 20 percent is an economically sound move. America’s corporate tax rate is one of the highest in the world, which is the reason so many companies leave America and build their businesses in countries such as Mexico. Think of your uncle who was laid off, or your sister whose company is being sent overseas. One of the primary reasons this occurs is because of the tax rate. Therefore, Trump lowering corporate taxes is a win not just for the wealthy, but American workers as well. It helps eliminate a cause of fleeing businesses.
Lowering taxes for wealthy citizens is also the fair decision to make. Many liberals illustrate their grief with the one percent by stating they do not pay their fair share of taxes, and they become frustrated when the tax rate is lowered. However, the top one percent pays nearly half of all the federal income taxes in the US. In contrast, the bottom 80 percent of Americans pay about 15 percent of the income taxes, with the bottom 60 percent paying less than two percent (CNBC). Clearly the one percent do pay their fair share of taxes. Cutting taxes for the most heavily taxed Americans is the moral decision.
In addition, Trump’s tax plan benefits small businesses. “Pass-through” businesses currently pay the same tax rate as their owners, which often adds up to a tax rate of greater than 25 percent. Thus, Trump’s decision to lower the tax rate to 25 percent will decrease the amount of money companies hand to the government (NY Times).
As the daughter of two small business owners, I support Trump’s plan. I personally believe that taxes should be lowered for everyone, in all situations. Taxation is theft. The government steals American citizens’ money to squander it on programs with few positive outcomes, and fraud is rampant. For instance, in 2009 a GAO audit determined that almost half of all government credit card purchases were “improper, fraudulent, or embezzled.” In addition, in 2008 the federal government made around $72 billion dollars in improper payments. Citizens engaging in fraud waste money as well, with health care fraud costing taxpayers more than $60 billion annually (Heritage Foundation). While citizens must pay taxes to pay for some necessary services, the most important being our fantastic military, if the government is going to squander citizens’ money, they have even less reason to steal it.
Overall, economic experts have praised Trump’s tax plan. Jamie Dimon, the chief executive of JPMorgan Chase, stated that the plan is “an encouraging step forward in our shared goal of a tax system that delivers higher economic growth, job creation and wages that our country desperately needs.” Trump’s tax plan will bring benefits to all Americans, both to the wealthiest citizens and those in need. Trump is following through on his promises.
Rachelle is a freshman Education major. She is she is a staff writer for The Voice