economy
Ken Paxton's tax plan would take Republicans in the wrong direction
Republican tax policy used to have the simple goal of lowering rates, eliminating loopholes, broadening the base, and letting people decide how to spend their own money as much as possible.
TL;DR
- Traditional Republican tax policy aimed to lower rates, eliminate loopholes, broaden the tax base, and increase individual spending power.
- The 2017 Tax Cuts and Jobs Act lowered individual income tax rates and the corporate tax rate from 35% to 21%.
- The act also nearly doubled the standard deduction and reduced the tax base by limiting deductions.
- The economy responded positively, with business fixed investment increasing by over 5%.
- The tax cut was designed to reward productive economic activity rather than political favoritism.