*gets on his soapbox, megaphone pointed in Senator Rand Paul's general direction with the volume turned to 200 or so*
Senator Paul,
I understand that you've been reading a lot of your dad's plans. and they had to have sounded really good for you to co-opt them for yourself (eliminating 4 entire cabinet departments, and privatizing a 5th). Lets ignore the other uber radical right wing craziness in your budget and focus on TWO things.
17% flat tax? as well as yet another GOP plan that eliminates the capital gains tax entirely? This is trickle down economics on half a dozen types of steroids. Great, 30 plus years of it has proven to make America wealthier overall, but the shift in how that wealth is distributed is now insanely top heavy it defies description. but lets look a little deeper into the numbers and their consequences shall we?
Just for the sake of argument, let's assume your budget somehow becomes law. Whats the first thing you think corporate America is going to do? Switch as much of the executive compensation as they can possibly get away with into stock options.
Let me ask you this Senator.. If you are a senior executive at any kind of company that has stock options as compensation, why would you want to take a salary, when they can just sell a thousand or so shares you get as compensation a month and continue to life the high life (and never pay Uncle Sam a penny because there are no capital gains taxes)?
On the opposite end of the spectrum however, the average family of 5 making forty grand a year combined now has a guaranteed tax bill if $6800. That's 7 thousand they AREN'T spending making the economy grow by spending money. Or have you forgotten your economics 101 classes? if the people you are looking for as consumers do not have extra money to spend, they cannot buy your goods. If they cant buy your goods, you can't make money. If you can't make money, you trim the payroll, making a bad situation worse. and its a downward spiral. All so that you can give the 'job creators' a tax break. OK, I lied, I'm going to hit on a few more points in your budget here. You've also decimated the social safety net the working poor (of which there will be many more of under your plan) need to survive by turning the social saftey net programs the working poor depend on into block grants for the states to give out, which will eventually lead to the so called 'death panels' many of the far right claim the ACA is going to do.
What state are you representing again Senator? How will your budget positively benefit the people YOU represent in the long run?