Psst.... Trump's Tax Plan

The Market-Ticker ^ | August 10, 2015 | Karl Denninger

[ConservativeInPA]

Good Point, but let me bring up this point. I support the rebate replacing some 2,000+ poverty aid programs. I don't think the book mentioned this trade-off. 

I don't recall reading that in the book either, but it has been a while since I read book. Eliminating welfare programs and a direct rebate payment would be more efficient than having money wash through government. I have to question how effective it would be in solving the poverty problem. How many people would take the rebate and just not work? I for one have a fantasy of going off the grid. I could work a little, buy some land, use the rebate to pay property taxes and the few essentials that the land doesn't provide. Add the rebates of others that could live with me then life could be pretty good. I'm not saying I would do that, but it illustrates the unintended consequences of a new tax policy.

[ConservativeInPA]

Opps had the wrong marginal rate. $30,001 of income would be $300.05 in taxes. See ... Trump’s plan is too complicated! (Sarc)

[Ghost of SVR4]

Pick a FLAT TAX rate EVERYBODY lives with. EVERYONE has "skin in the game".

Couldn't agree more. One rate, no deductions, no fancy loopholes. Nada.

[Vinnie]

I think the price of new homes and cars would be lower since the businesses building new homes and cars are no longer taxed and they no longer have to pass the cost of taxes, tax lawyers, tax accountants, record keeping, lobbying, etc. to consumers. I'm not sure how that plays out.

True, if they would pass the savings along.
I am skeptical though.
Don't know if you are old enough to remember the 'sugar crisis' back in the 70s.
Because of gov. import restrictions (other things also) the price of sugar skyrocketed. Soft drink mfgrs. raised the price of drinks. Well lo and behold, artificially sweetened drinks jumped up also! And when the price of sugar fell the soft drinks didn't follow either.

Some small cost savings would likely happen but I'll bet nowhere near the true savings.

[ConservativeInPA]

I do recall the 'sugar crisis', the 'energy crisis' and a lot of the other problems from the 70's. Inflatation was a major problem too. I am not sure if a combination of other things didn't keep soda pop prices returning to normal.

It's good to have this discussion. I highly doubt if prices will immediately reflect the savings businesses have. Ideally, the market wikk correct itself. I would hope wages would rise since there would be more competition for employees if new businesses are created and businesses move to the US.