The argument that the tax cuts for the wealthy will significantly stimulate the economy is totally false. All that past tax cuts have done in the long run is increase the deficit without any noticeable benefit to the working class or to the economy. The Reagan and Bush tax cuts did essentially nothing except give tax breaks to the wealthiest and increase the deficit. No matter how much lipstick Republicans want to smear on this pig, the fact remains that the only people to get any substantial benefits are the wealthiest among us.
As for the working class, many will actually see a tax increase instead of a net tax cut. This is because many of the most vulnerable will lose deductions for areas, such as medical expenses, interest on student loans, local tax deductions, etc. Furthermore, the tax cuts sunset in a few years, but the elimination of deductions does not. That means that in a few years, the people making under $80,000 will see a substantial increase in there taxes for as much as 15 percent.
How do the Republicans pay for the tax cuts to the wealthy? Why one way is to cut out the health insurance coverage for 13 million Americans. That’s right. They pay for part of the tax cuts by hitting those who have the least ability to pay.
The remainder of the tax cuts is paid for by increasing the deficit, which means that our children, grand children, and great grandchildren will be stuck with the tab for paying off the rich Republican donors today.
Then there is the argument for cutting corporate taxes. The claim is that if corporations make more money they will increase wages for workers out of the goodness of the executives’ hearts. The fact is that the larger corporations have so many loopholes that they don’t pay anywhere near the stated rate. Big corporations are rolling in more money than they know what to do with.
So, where are those wage increase now? The truth is that if corporations pay fewer taxes they will just increase profits, buy back stock so the corporate executives have greater control, and increase dividends to the rich who already will have huge tax breaks.
No matter how you slice it, the tax “reform” bill is mostly about payback to the wealthy donors. The working Americans will see little if any benefit. And the economy will not improve in any meaningful way.