While the Republican Party includes a rather large ideological spectrum, there are some things that we generally all agree on. Republicans, at least on the campaign trail, are the pro-life party. Republicans support limited government, lower taxes, decreased spending, and Obamacare repeal. Unfortunately, Lisa Murkowski and Susan Collins aren’t the only big government liberals hiding in our ranks. Steve “New Deal” Bannon is reportedly pushing a tax hike on high income earners as part of a potential Trump tax reform. From The Intercept,
Top White House adviser Steve Bannon is pushing for tax reform to include a new 44 percent top marginal tax rate, hitting people who earn more than $5 million a year, with the revenue paying for tax cuts for the rest, according to three people who’ve spoken to him recently.
Bannon, the former CEO of Breitbart News, is not shy about his anything-but-conservative governing philosophy. Back in January I wrote about Bannon’s “Third New Deal” infrastructure plan he laid out in a post-election interview.
It’s everything related to jobs. The conservatives are going to go crazy. I’m the guy pushing a trillion-dollar infrastructure plan….We’re just going to throw it up against the wall and see if it sticks. It will be as exciting as the 1930s
Tax. And. Spend. Seems pretty similar to the economic strategy espoused by Trump’s White House predecessor, President Obama. Americans rejected the FDR style tax and spend policy in November when they handed Hillary Clinton and embarrassing electoral defeat. Why does Bannon feel the need to give Democrats a voice in the White House? Tax and spend policy does not work. It restricts economic growth, cutting revenue in the long term, and driving resources to overseas tax havens. You can never successfully overcome the spending gap with more taxes.
According to IRS data, just over 43,000 people filed tax returns for the year 2014 claiming income of at least $5 million, accounting for $600 billion in taxes, or 8.8 percent of the total taxes paid.
Even if we account for 100% of the taxes paid by this top tax bracket ($600 billion), we still could not fund Bannon’s “Third New Deal.” When you look at the projected income from his tax hike, things look even more bleak.
The new rate would only apply to about a third of that money, as the 44 percent kicks in at the $5 million level. Still, the hike would pull in around $18 billion per year, or $180 billion over 10 years.
How are we going to pay for a trillion dollar infrastructure plan with $18 billion a year? Conservatives got a huge win with Justice Gorsuch, but big government liberals are hurting Trump’s chances of delivering on Obamacare repeal and conservative tax reform. Just like Lisa Murkowski, Steve Bannon has got to go. They are no friends to conservatives.