Middle class loses with GOP tax plan
Tax plans being rushed through by Republican lawmakers seem to offer financial benefits to working families, but what is offered with one hand is taken away by the other hand.
Funds needed for services, roads, infrastructure, health care, defense — benefits that directly affect all of us and the economy — will be siphoned off to pay for the $1.4 trillion added to our national debt. Then, a big push to greatly reduce Medicare, Medicaid and Social Security will become overwhelming as the need to reduce the national deficit becomes the next battle cry of Republicans.
The House plan primarily cuts taxes for the wealthiest one percent and the largest corporations, which are already cash-rich but still fail to produce more jobs. The tax "cut" would raise taxes on about one-third of the middle class by 2027 when all measures are in place.
Other measures that favor the wealthiest are elimination of the alternative minimum tax and the estate tax and new loopholes for pass-through business income and offshore money, according to MarketWatch. All would add to a greater disparity between have and have-nots.
The Trump family would gain considerably. Eliminating the estate tax would save the family an estimated $1.2 billion in inheritance taxes, according to Forbes.
If the alternative minimum tax didn't exist, Donald Trump apparently would have paid a 4.5 percent rather than 25 percent income tax rate in 2005.
Members of the Trump family, who conduct business through more than 500 pass-through entities, are poised to gain again — a dynasty in the making.
Predictions that tax cuts will lead to economic growth are countered by facts. There is no downturn calling for fiscal stimulus. Revenues are not historically high and are already too low to cover obligations. Tax cuts would add significantly to the national deficit.
As wealth for billionaires and large corporations increases, so does their influence over our elections and laws. Instead, we need to feed the base: Improve our infrastructure, education, health care, opportunities for entrepreneurs and small businesses, and truly help all the American people.