This plan will result in budget hawks calling for cuts to Social Security, Medicare, Medicaid, education and infrastructure to pay for tax cuts for corporations and the wealthy. Unless Congress is willing to dramatically cut major entitlement programs and eschew new social programs to address poverty and declining economic mobility, we need more tax revenue from the middle class, not less.
“A primary goal of the committee is to provide a tax system that ensures that individuals with similar incomes pay similar amounts of tax.” . With these lower tax rates, the share of taxes paid by the middle class has also declined.
U.S. Rep. Dan Webster, R-Clermont, represents District 11, which includes Hernando and Citrus counties. If they don’t get big bucks out of tax “reform”, they might close their pocketbooks for the 2018 midterm elections. John F. Kennedy proved it. Ronald Reagan proved it.
While President Trump’s tax cut proposal is being touted as tax cuts for working Americans, it is a continuation of President Reagan’s failed tax plan, or “Trickle Down Economics”.
It’s tax time again – at least for Congress, which is considering modification to our complex, 74,000-page tax code. Half of the $7.8 trillion cut will go directly to the top 1 percent. There are many – so many I literally don’t have space to so much as list them in this column. We need tax relief and we need it now.
That is because high federal debt means higher interest payments for the government, and will tend to push up inflation and interest rates.
It remains to be seen whether Republicans can agree on a tax plan among themselves, much less cut a deal with a few Democratic senators if needed.
According to Hassett, companies save more money when their tax bills go down and some of that money is likely to go into the hands of workers. But limiting and not scrapping the deduction would raise only about a quarter of the additional revenue that Republicans are looking for to offset their tax cuts. Already the USA gross national debt has more than doubled since the mid-1980s, to more than 100% of the nation’s gross domestic product. Quite the contrary, elimination of the deduction in exchange for lower federal income tax rates is a revenue-neutral shift in tax policy. During recessions in 1981 and 2009, politicians pushed through tax breaks to give a shot in the arm to consumers and businesses. The recent period of economic growth, while weaker than past recoveries, has been one of the longest in the nation’s history. The argument for them is mostly flim-flam. Un-American taxes such as the death tax – that require taxpayers to pay taxes twice and discourage saving wealth for children and grandchildren – would be repealed. The plan also would simplify the federal tax code by reducing the number of tax brackets to three – 12, 25 and 35 percent.
The average household brought home $83,143 in income a year ago.
“You’d have to have a tsunami of corporate capital coming into the United States we’ve never seen that”, Mazur said. Business investment and startup activity have been unusually sluggish this last decade. The higher stock prices touted by Trump are a possible sign that investors would reap most of the benefits from lower corporate rates, although Hassett said he expects an increase in wages if the tax overhaul is passed. At a top rate of 23.8 percent-and 43.4 percent for non-qualified dividends-the US has some of the highest rates in the world, and they are dragging down economic growth. A single mom with two small children making a median income of $41,000 would receive almost $500 in tax cuts and, furthermore, would be off income tax rolls altogether. Unlike the White House, Goldman Sachs found only “modest” effects on wages and growth, if that, from the tax plan.
Constitutionally, Griffith said, the federal and state governments are sovereign, providing different benefits to citizens. Everyone wants to pay less in taxes, of course.