Will the GOP tax bill help or hurt the middle class? | The Tylt
Will the GOP tax bill help or hurt the middle class?
The GOP tax bill has been criticized by many as being nothing more than a huge tax cut for the rich at the expense of middle-class Americans. In addition to increasing the deficit by $1.4 trillion, the House bill does away with the individual mandate, essentially gutting Obamacare. The bill will also hurt people living in high-tax states like California and New York, which explains why a few House Republicans from those states opposed the bill.
A dozen Republicans bucked the party line on what they thought was the final House vote on the bill... the lawmakers in question were all from New York, New Jersey or California, three of the states that will likely be hit hardest by the capping of deductions for state and local taxes at $10,000.
Republicans from all of the three states will have some explaining to do to their constituents.
But defenders of tax reform argue critics of the bill are not being completely honest about what's in it. Brian Riedl of the National Review states while the legislation isn't perfect, the plan does accomplish the things Republicans have been promising and does not raise taxes on the middle class as Democrats claim.
Even before the tax bills were drafted as legislation, Senate Democrat cries of “middle-class tax hikes” earned a brutal “four pinocchio” condemnation from the Washington Post fact-checker... A Tax Policy Center analysis of the Senate bill reveals that three-quarters of all families would get a tax cut. Just 12 percent would see a tax increase — and they are concentrated among the rich. The average middle-income family would receive a tax cut of approximately $850 per year through 2025.
The tax-reform bills are far from perfect. But many critics are blatantly misrepresenting them.
Still, as Matthew Yglesias writes in Vox, "if the GOP tax plan is so good [why] do its authors keep lying about what the bill does?" Yglesias argues if Republicans were really concerned about the middle class, they would just give them a tax cut directly. Why include tax cuts for the ultra-rich at all?
It’s obvious that if you cut a tax that’s only paid by married couples who’ve amassed at least $11 million that you are helping rich people. It’s obvious that if you enact a special discount tax rate for people who own LLCs then you are helping Donald Trump, who owns a ton of them. And it’s obvious that if part of your plan is permanent and part of it is temporary, and the part you made temporary is the part that helps the middle class, then helping the middle class wasn’t your priority.
Economists remain divided as to whether the GOP tax bill will help the economy. In a letter to Congress, 100 economists urged members to support the bill, arguing it would accelerate economic growth and make America more competitive in the global market.
Economic growth will accelerate if the Tax Cuts and Jobs Act passes, leading to more jobs, higher wages, and a better standard of living for the American people. If, however, the bill fails, the United States risks continued economic underperformance. In today’s globalized economy, capital is mobile in its pursuit of lower tax jurisdictions. Yet, in that worldwide race for job-creating investment, America is not economically competitive.
The enactment of a comprehensive overhaul—complete with a lower corporate tax rate—will ignite our economy with levels of growth not seen in generations.
And many believe Republicans will have hell to pay in 2018.
51 Senate Republicans just voted for the largest raid on the poor and middle class to finance the biggest tax cut for corporations and the wealthy in history. Why? To pay off the GOP's donor class. What do we do about it? As the saying goes, throw the bums out.