Trump’s Tax Proposal Is Most Pro-Growth Since Reagan

An editorial from Investor’s Business Daily about Trump’s tax proposal:

Cutting Taxes: President Trump’s much-awaited tax reform plan is here. As promised, it will deeply cut taxes, make the code simpler and help restore economic growth, job creation and entrepreneurship. It’s the most pro-growth tax plan since the Reagan Boom, and that’s saying a lot.

At the unveiling of the tax reform plan on Wednesday, the White House described it as “the biggest individual and business tax cut in American history.” That’s no lie.

And here’s a surprise: one group that will especially benefit, but seldom gets mentioned, is Millennials.

If Trump’s supply-side tax-cut magic works as it should, many of these young workers will be leaving their parents’ couches and taking off their barista aprons to take better jobs at higher wages. For the first time in their working lives, they will know what it’s like to live in an economic boom, not the decade-long era of decline and 2%-growth stagnation that marked the Financial Crisis and the Obama economy. Maybe they’ll come to think of Trump as fondly as those who lived through the Reagan Boom think of The Gipper.

The reason for this optimism over the job prospects of the demographic cohort, born roughly from the mid-1980s to the early 2000s, is economic growth from unleashing the animal spirits of the private economy via tax cuts.

As IBD noted earlier, the real kick in this tax plan comes from the reduction in the top federal corporate tax rate from nearly 39% to 15%. That alone would create a massive wave of economic growth, millions of new jobs and higher incomes as businesses invest hundreds of billions of dollars.

And it applies the 15% rate not just to big corporations, but to small- and medium-size businesses, too — tax partnerships, limited liability companies and other so-called “pass-throughs” that are now taxed mainly at the individual income rate. This would be an enormous tax break for entrepreneurs and would lead to the biggest wave of innovative startups since the late 1990s tech boom.

Read more: Investor’s Business Daily