Still think Trump’s a Conservative?

Trump unveils his tax plan

Donald Trump announced his tax plan today after a 60 Minutes interview where he reiterated his support for universal health care.

Universal health care is more socialistic than Obamacare.  It has never been attempted in a country as large and complex as the United States.  The closest thing we have to it is Medicare, which is currently burdened with nearly $40 trillion in unfunded anticipated liabilities.  Combined with the unfunded liability of Social Security, the Federal government from just those two programs is short by nearly $60 trillion, which is more than the GDP of the entire world!  How can anyone claiming to be an economic genius suggest that universalizing a program already in the hole, Medicare, will solve health service availability?  The answer is, it cannot.  Trump has committed an outrageous betrayal of his conservative supporters.

Conservatives on talk radio like Mark Levin, Sean Hannity and Rush Limbaugh have gotten out ahead of their skis trumpeting the virtues of Donald Trump.  Are these icons of conservative talk actually going to support a Republican candidate who favors universal health care?  It’s hard to imagine.

What will really be interesting will be the reaction of Donald Trump the first time a conservative talk show host levels serious criticism of his conservative credentials.

Conservative Resurgence:  A Reaction to Obamacare

In 2009 and 2010, the Tea Party Movement emerged as a consequential political force because of the threat of Obamacare.  Instead of moving the country away from Obamacare, Trump has more than just embraced it.  If he had his way as President, he’d fulfill the fantasy every Liberal Progressive Democrat had over the past 75 years.  It should be obvious now that Trump is not a conservative.  He is quite clearly a Progressive.  No conservative would ever, even on their worst day, propose universal health care.

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The Trump Tax Plan

But what of the Trump tax plan?  Mr. Trump claims under his plan half of all Americans would pay no income tax at all.  Before tackling that efficacy of his proposal, it’s the case right now, that nearly half of all Americans pay nothing in income taxes.  And according to the reports issued by the IRS itself, the effective income tax rate on approximately 60% of Americans is only 2% or less.  Trump’s plan offers little in the way of tax relief to the middle class because his plan isn’t aimed at them.

But the larger question ought to be, should America have a tax system where half of her citizens pay no income tax?  Is it advisable to have a country where the government is growing, but the base of people paying for it is shrinking?  Moreover, can it be said that those not paying income taxes will favor a smaller, more streamlined, less expensive government?  Why would they?  They’re not paying for it.  Under a continuation of the current system or by Trump’s plan, one could envision a day where, like in  Greece, the majority of people are demanding services from a government unable to provide them because the tax base has been so thoroughly eroded.  The Trump tax plan is a disaster on the personal income tax front.

The Trump tax plan isn’t entirely bad.  His proposal to limit the corporate rate to 15% is a step in the right direction.  Most Americans have probably heard by now the truism, “corporations don’t really pay taxes.”  This is really only half true.  Of course, corporations do file and pay income taxes.  But the reason for the truism results from the fact that corporations sell things and make profit on the things sold.  Taxes are just part of their cost structure and the more you tax them, the more they will try to pass that tax on to you, the consumer in the form of higher prices for what they sell.  In other words, the ultimate person paying the corporate income tax are the customers of the company.  That’s why corporate taxes are a bad idea and Trump is right to at least reduce the rate.  But he would be a real profile in courage if he eliminated it altogether.

Donald Trump has unmasked himself with his tax proposal and health care revelation.  He’s not a conservative.  And if he is a Republican, he’s more closely aligned with Nelson Rockefeller than Ronald Reagan.

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