President Donald Trump must act now to push his tax plan through Congress because the American people who voted him into office are expecting the economy to truly flourish and fulfill his campaign vow to "Make America Great Again," Steve Forbes, chairman and editor-in-chief of Forbes Media, told Newsmax TV.
“The key thing is to get a good straight bold tax cut plan through,” Forbes told Sunday’s “The Income Generation Show.”
“Don't put in this crazy 20 percent national sales border tax in. Make it clean, make it big,” he said.
“And I would push it through now even though the Republican are deep into healthcare that's going to take a lot of work, a lot of controversy. Do a big tax cut, make it retroactive and you'd start to see this economy blossom,” he said.
“There's a lot of optimism out there. People ready to move and he's got to start have Congress deliver on the promises that he made. The American people are expecting it,” he said.
“I think if they go through with what he has proposed everyone's going to benefit from it. Perhaps tax lawyers will have a little less work but that's not a bad thing. They can spend more time with their families and so can IRS agents but for the American economy," he said.
"It'll be great for the world economy as well because if we show the way in reducing tax burdens can revive an economy, other countries will follow in our way,” he said.
“Remember back in the 1980s when Ronald Reagan did his drastic tax cuts, 50 countries followed suit in the years after those tax cuts were passed, so it'll be good for everybody except Democrats maybe who are in the far left. A lot of Democrats would be happy too,” he said.
“As John Kennedy and Ronald Reagan demonstrated when you cut tax rates across the board which is what Donald Trump is proposing in that tradition, not only does everyone benefit but the whole economy benefits. You're not trying to pick winners or losers and by increasing deductions, standard deductions for people, they get more money in their pockets under the Trump plan,” he said.
“They've made that very explicit, everyone's going to get a nice tax cut and we also know when you reduce tax rates that encourages more investment. We haven't had a lot of business investment in recent years so it's a win-win for everyone,” he said.
“It's a very good tax plan and it lays the foundation as he said in the past for doing even greater things in the future. This will help get the economy off its back. We're still in second gear. You do get the economy moving and that creates the political capital to do even more things down the road.”
Whether tax reform can be passed by the August recess on Capitol Hill is another issue.
Senate majority leader Mitch McConnell, in a recent nterview with Politico, would not commit to a timetable, saying lawmakers are faced with "some constraints." One is that health care legislation must pass or fail before a tax plan can be considered, he explained.
Forbes is author of "Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity," written with Elizabeth Ames and published by McGraw-Hill Education.
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