Monday, November 6, 2017

Republican Tax Cut: More Smoke and Mirrors

Republicans are praising their new tax plan as a tax cut for the middle class. However, nothing could be farther from the truth, since the vast majority of cuts would benefit the wealthiest people and corporations.

Also, even though the current estate tax allows for an individual to transfer roughly 5.5 million dollars and a married couple to transfer 11 million dollars of assets tax free, Republicans want to double these levels. Only a very small percentage of people have to pay estate taxes even under the current plan, so the proposed change clearly is earmarked for the wealthy and not the middle class.

The tax plan is also being touted as a major stimulus for growth, since corporations will have more money to invest.  However, they are already flush with profits that are sitting on the sidelines, and there is no credible evidence or history to prove that increasing the already strong wealth of corporations will generate growth.

Trickle-down economics didn't work under Reagan; it won't work now.

Republicans say they want to "simplify" the income tax form, but that is really a smokescreen for wanting to do away with deductions and credits that many middle class families benefit from.

If this plan passes, the deficit will skyrocket. Republicans will then see that as an opportunity to justify the slashing of Medicaid, Medicare and other important social programs people need.

This is business as usual for the GOP - favor the wealthy, punish the poor and middle class.

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