An independent analysis of the Republican tax bill just put the lie to the President’s claim that all Americans would receive a tax cut for Christmas. Quite the contrary, the nonpartisan Tax Policy Center is saying. According to their report, taxes will go up considerably for at least 50% of Americans by 2027, if the Senate package is passed.
As many as 9% of Americans would start paying more taxes as early as this year.
What’s worse, lower-income Americans would get smaller tax breaks than higher-income Americans.
According to CNBC:
In 2019, those making less than $25,000 would get an average $50 tax reduction, or 0.3 percent of their after-tax income. Middle-income earners would get average cuts of $850, while people making at least $746,000 would get average cuts of $34,000, or 2.2 percent of income.
Not only does the tax plan favor the rich over the middle-class and poor, it does little to spur economic growth, despite Republican claims to the contrary:
The center also said the Senate proposal would generate enough economic growth to produce additional revenue of $169 billion over a decade. That’s far short of closing the near $1.5 trillion in red ink that Congress’ nonpartisan Joint Committee on Taxation has estimated the bill would produce over that period.
Even worse, economists have unanimously warned that the bill will balloon the national debt to the tune of over $1 trillion.
Oregon Senator Ron Wyden, the top-ranking Democrat on the Senate Finance Committee, issued a blistering response to the nonpartisan study, saying, “[M]iddle-class Americans will ultimately see a tax hike under Republicans’ plan while corporate sponsors line their own pockets with multi-trillion-dollar giveaways.”
Meanwhile, the Senate bill has snuck in language to try to repeal Obamacare, by getting rid of the mandate that requires every American to acquire health insurance or pay a fine.
By doing this, not only are Republicans trying to undo health insurance for millions of Americans who could not afford it if everyone isn’t paying in to the system that allows subsidies for the poor, they are also stealing revenue that would have otherwise brought down our national debt by $338 billion over the next ten years.
Senator Susan Collins, the Maine Republican who has twice torpedoed Trump’s attempts to repeal Obamacare, has said of the Senate tax bill:
But the biggest mistake was putting in a provision from the Affordable Care Act into the Senate bill that is not in the House bill. And I hope that will be dropped, or that bills that have been introduced by Sens. [Lamar] Alexander and [Patty] Murray and Bill Nelson and myself will be adopted to mitigate the impact of those provisions.
Trump’s Budget Director, Mick Mulvaney, who is also the President’s choice to take over the Consumer Financial Protection Bureau, in an attempt to destroy that agency, has said that the mandate provision could be taken out of the Senate bill, if that is what is required to pass it.
However, with or without the tax mandate, millions of middle- and working-class Americans will suffer, as deductions for student loans, medical expenses, and real estate under $500,000 will be revoked, while deductions for private jets will be added. Trump’s own family stands to gain $1 billion from the bill.
Trump’s Republican Party is so hell-bent on getting through their reverse Robin Hood tax bill that they are willing to support child molester Roy Moore for Alabama’s Senate seat, in order to get all the votes they need.
With the onslaught on our democracy from the Russia-backed Trump administration that is attempting to undo Net Neutrality, victim shame sexual assault survivors, and destroy consumer protections, it can be easy to tire of fighting back or one can simply miss the fine print on the tax bill.
But if we do not call and write to our lawmakers demanding that they stand up to this blatant attempt to steal from the little guy to further fatten the pockets of the 1%, we could be paying the price for decades to come.