Observations:

• There are still 7 tax brackets
• • Why should someone who makes more pay a greater percentage?
  • This discriminates between people of higher incomes and people of lower incomes. It assumes that people who make a greater income either did something immoral to amass there wealth, that their wealth in of itself is immoral, or that they gain a lesser marginal utility from their wealth. (For more on this thought, please read Professor Frankfurt’s book, On Inequality.)
  • I agree with many representatives who advocate a flat tax because I find it extremely unfair to tax somebody a greater percentage simply because they derive a greater amount of profit from their activities. It is also unfair to tax certain types of transactions more than others, because it removes a valuable freedom of exchange. People choose to purchase different things from different places, and no one transaction should be taxed greater than another, just as people conduct different activities that give them different incomes and no one bracket should be taxed a greater percentage.
• In the Original tax plan the tax brackets were at10 Percent, 15 Percent, 25 percent, 28 Percent, 33 Percent, 35 Percent, and 39.6 Percent. With the new tax plan, the only brackets that don’t receive a cut are the 10 percent and the 35 percent.
• The increases in percentages between tax brackets are wholly inconsistent and have no obvious logic.
• • Very few things have changed besides the tax cuts. This is another one of those things which has not changed since the last plan. Here is the order of intervals between bracket percentages:
  • • 2 percent jump, 10 percent jump, 2 percent jump, 8 percent jump, 3 Percent Jump, 2 Percent jump
• In summation, it is a great thing that so many Americans of different income levels, will receive tax cuts, but the state of this bill is sad. It retains 7 income tax brackets, and it sustains apparently random percentage increases between different brackets.The effects of tax cuts may be canceled out by a large increase in the nations deficit. Congress must focus on a balanced budget, before they can ever enact dramatic change in the way taxes are levied in this country. This country needs dramatic change in both monetary and fiscal policy. My next post will follow this up with a commentary, on the Federal Reserve’s irresponsible policies and debasement of our currency.