Mark Skousen| Mar 08, 2016

“Taxation is the price we pay for failing to build a civilized society. The higher the tax level, the greater the failure.” — Mark & Jo Ann Skousen, “Persuasion vs. Force.”

Taxes have been on the rise under President Barack Obama’s administration since 2008, with higher rates on income and capital gains. When the government takes more money in the form of taxes, it leaves less money for private individuals to pursue their own best interests, or the interests of non-government organizations.

Will this trend reverse itself with a new president? Not if the next president is Hillary Clinton or Bernie Sanders, who both want to increase taxes even further on income and capital gains.

All of the Republican candidates want to cut tax rates, but several — Ted Cruz, Marco Rubio — want to create a new tax system on business known as a consumption tax or value-added tax (VAT). Both types of taxes would be bad news, in my judgment. Eventually, we would end up with both an income tax and a VAT.

Donald Trump’s tax plan is a step in the right direction — cutting the maximum income tax rate to 25%, and reducing business and capital gains taxes to 15%. Remember, a tax on interest, dividends and capital gains is a tax on capital, the future of the economy. (See last week’s Skousen CAFÉ.)

Too bad Trump doesn’t talk much anymore about his tax plan. It’s a good one but it seems to have been lost in a campaign that has become mired in criticism of others rather than championing one’s own favorite policy positions.

Will these tax cuts cause the federal deficit to increase? Much of it depends on whether the next president can cut government spending. Frankly, I don’t see it happening with either Trump or Clinton. Both want to expand government spending, and the number of programs that they claim need extra funding seem to be growing as the election cycle continues.

Which Presidential Candidate Has the Best Tax Plan? - Mark Skousen - Townhall Finance Conservative Columnists and Financial Commentary - Page 1


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