Scott Rasmussen's Number of the Day for October 18, 2017
The Number of the Day columns published on Ballotpedia reflect the views of the author.
October 18, 2017: President Trump’s proposed tax policy change would lower the top corporate tax rate but hope to make up the revenue by eliminating deductions and spurring economic growth.
Currently, corporate tax deductions are estimated to cost approximately $131 billion or more annually.[1] That figure reflects 38% of the total corporate tax collected.[2]
However, as the Congressional Budget Office (CBO) notes, “The total amount of tax expenditures does not equal the increase in revenues that would occur if the tax expenditures were eliminated.” That’s because changing the tax code would change the behavior of many Americans.[3]
One example provided by CBO notes that “if preferential tax rates on realizations of capital gains were eliminated and those gains were instead taxed as ordinary income, taxpayers would reduce the amount of capital gains that they realized, diminishing the additional revenues that would be produced.”[3] If you raise taxes on capital gains, people will be less likely to sell their stocks or other capital gains. On the other hand, if you lower taxes on capital gains, people will be more likely to sell and pay the tax.
Most of the focus on tax issues revolves around the amount of income produced for the government and who pays it. However, in the larger context, it’s important to note that deciding who gets what deduction is a way for the government to pick winners and losers. “Tax expenditures increase the size and scope of federal involvement in the economy.” According to CBO, “adding tax expenditures to conventional federal outlays makes the federal government appear notably larger relative to GDP.”
This is the reality that keeps lobbyists fully employed.
Each weekday, Scott Rasmussen’s Number of the Day explores interesting and newsworthy topics at the intersection of culture, politics, and technology.
- October 17, 2017 – 40 percent of cloud computing market controlled by Amazon
- October 16, 2017 – 15 state legislative chambers could see change in partisan control
- October 13, 2017 – 51 percent of Americans say government should not favor any set of values
- October 12, 2017 – 32 percent decline in regulatory rules in Trump’s first nine months
- October 11, 2017 – 48 percent of Americans say right to own guns is essential to freedom
- To see other recent numbers, check out the archive.
Scott Rasmussen’s Number of the Day is published by Ballotpedia weekdays at 8:00 a.m. Eastern. Click here to check out the latest update.
The Number of the Day is broadcast on local stations across the country. An archive of these broadcasts can be found here.
Columns published on Ballotpedia reflect the views of the author.
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