Tim Pawlenty unveiled his own vision for the Republican Path to Poverty today which primarily consists of tax cuts, tax cuts, and more tax cuts.
We should cut the business tax rate by more than half. I propose reducing the current rate from 35% to 15%…On the individual rates we need a simpler, fairer flatter tax system overall. I propose just two rates: 10% and 25%. Under my plan, those who currently pay no income tax would stay at a zero rate. After that, the first $50,000 of income – or $100,000 for married couples – would be taxed at 10 percent. [...]
In addition, we should eliminate altogether the capital gains tax, interest income tax, dividends tax, and the death tax.
If you were to eliminate taxes on capital gains, interest, dividends, and estates, then you will have basically reduced taxes on the wealthy to 0%.
The Rich do not actually pay 35% in taxes because the rates for capital gains and dividends, which they live off of, are lower. Hedge-fund managers, for example, who make more money than anyone, also pay lower taxes than anyone because they are taxed at the rate for capital gains which is 15%.
Under Pawlenty's plan, they would be taxed at a rate of 0%.
I'm sure Pawlenty was expecting the beltway press to jump into his lap and ride him like they did Paul Ryan after he unveiled his serious-as-a-heart-attack "Path to Prosperity," but so far it seems as though no one is paying much attention.
Either the beltway media has wisened up, or the endless tax-cut drumbeat has grown tired and stale. And since the media resoundingly assured the world yesterday that they are not to be taken seriously, I'll go with the later scenario.
Adding... The cost of Pawlenty's tax-cut bonanza would be roughly $7.8 trillion dollars.