Forbes: Big Tax Cut Coming, But Ryan Needs to Lose CBO Models

Image: Forbes: Big Tax Cut Coming, But Ryan Needs to Lose CBO Models
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By    |   Monday, 18 Sep 2017



Republicans — namely Speaker Paul Ryan — will eventually get out of their own way and pass tax cuts this calendar year, if only in the spirit of self-preservation, Steve Forbes wrote in a column for Forbes Magazine.

What should have been second nature to the party of Ronald Reagan has sputtered because Ryan put too much emphasis on process over principle — the "monumentally flawed budget estimates" of the Congressional Budget Office, Forbes wrote.

But with that nonsense of offsets out of the way, a big tax cut — though not tax reform — is on the horizon.

"Republicans will soon come to understand with next year's elections looming: go big and if some changes are subsequently needed, do them later. But go big immediately," Forbes wrote. "There simply isn't enough time for a significant overhaul of the code. What will emerge will resemble more Reagan's 1981 simple across-the-board tax cuts rather than the major tax reform of 1986."

Forbes' predictions:

  • Tax cuts of 10 percent to 15 percent for all brackets.
  • Corporate tax rate "slashed from 35% to something close to 15%."
  • "Standard and personal exemptions will be doubled."
  • Partial suspension of the Social Security tax for employees.
  • Reduction — or at least amending — of tax brackets.

"CBO worshipers and other will scream that all this will 'blow a hole in the deficit.' It ultimately will do the opposite by getting the economy back on its natural growth rate. If the economy had expanded during the past decade at its historic average, we would have no budget deficit today," Forbes concluded.

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