Larry Kudlow: Individuals, Families Can Spend Their Own Money Smarter than the Government

EXCERPT:

KUDLOW: “So, my point here is we should be reforming the whole tax code. Alright, just for a moment step back. Take a police detective and his high school teacher wife. I’m going to bet their combined income is $150,000-$200,000 a year. That’s good money, but they shouldn’t have to pay a 32 percent tax rate. I’D knock their rate down to 15 or 20 percent. In other words, a middle-class tax cut. And by the way, we don’t need 7 tax brackets, which is incredibly complex. Let’s knock it down to 3 brackets, 10, 20, and 30. You know, Ronald Reagan, over 40 years ago, he left it at 28 and 15. Now, if you make $500,000 or $600,000, I guess you can pay 30 percent, not 37 percent. But the middle bracket, if you make $200,000-250,000, you should pay only 15 or 20 percent. The bottom bracket could be a 10 percent, but frankly, nobody really pays taxes there anyway. Look, this would simplify the tax code.”