Inside the numbers… According to a recent WSJ Poll, only 24% of Americans believe this is tax bill is a good idea and 41% think it’s a bad idea; 63% of Americans think it’s designed for corporations and the wealthy, and only 7% think it’s designed for the middle-class, which has been a Republican talking point over the past few weeks.
As this recent poll states, this tax plan is highly unpopular.
Without going into grave policy detail… this tax plan will absolutely benefit corporations and wealthy individuals more than the middle-class. It will increase wage inequality and shrink the middle-class, sending more households to the lower class and fewer to the upper class. Also, this tax plan repeals the individual mandate in the Affordable Care Act. According to the CBO (Congressional Budget Office), a nonpartisan group of economists, roughly 13 million people will lose their health insurance due to repealing the mandate.
What Republicans are not telling us, excuse me, what they’re not admitting, is that they know trickle down economics doesn’t work. They also know that corporations likely won’t hire more employees or increase wages when these tax cuts are signed into law, instead, they’ll reinvest in their businesses, buy back stock, and give out record bonuses to their top management and c-suite executives. While this tax bill adds $1.5 trillion to our national debt, they’re already planning on proposing huge cuts to entitlement programs in 2018_ all while 6-7-8 figure earners, as well as select groups like real estate developers and private equity professionals, benefit from these massive tax cuts.
With all that being said, Republican’s brilliantly designed this bill to have an immediate positive impact on most middle-class households [short-term]. But considering the personal tax provisions are set to expire in 10 years, it’s important to note that the business tax cuts will not. Therefore, the positive impact for corporations and the wealthy [in the long-term] is astounding and much greater. For example, in 2027, two-thirds of middle-class households will see a tax increase in their personal income taxes, and none of them will see a tax cut.
By design, this middle-class tax honeymoon will surely last long enough to surpass the 2018 mid-terms and 2020 presidential election. However, can Democrats capitalize on recent big wins in Virginia, New Jersey, and most recently Alabama, and pick up enough seats to challenge Trump and maybe win the White House? IF Democrats can somehow win the House and Senate, and the White House in 2020, can such a massic tax bill be easily reversed, or amended to thwart such a negative long-term impact on lower and middle-class households?
(No Claps Yet)
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Might? It will. Middle class now will grow to be the poor people of this country.
This is another example of the bait & switch concept. Short term tax breaks to the middle class with exponential tax increase. Some may argue that tax breaks for corporations are a good thing for the economy, however, this notion appears to be successful when business leaders aren’t self serving. Many corporations are obligated to maintain a specific number of employees & diversity in order to get various tax breaks. I wonder if the bill makes that part of the criteria.