Saturday, November 04, 2017

The GOP tax plan—we will get fooled again—and again—and again

By SJ Otto
Pundits all across the country are analyzing and commenting on the Republican Party’s tax plan, under the guidance of President Donald Trump. The US has had a lot of pundits comment on the plan and The Wichita Eagle has relied on Josh Boak[1] and his article “GOP tax plan may offer little aid for many in middle class”. There is nothing surprising about this plan—nothing new from the last great tax break we got under former President Ronald Reagan, back during his reign, in the 1980s. The Republicans, since that time, have given lavish tax cuts to the wealthy at the expense of the poorer people. Back in Reagan’s time, he actually raised taxes on those who made less than $20,000 a year. That part of the population was rather small at the time. So most people got a nice tax cut accept those who earned the least among the US Population. It was easy for the middle class workers to just ignore those whose taxes went up. At the time I was working as a janitor and I just happened to be one of the people who got a tax hike. My taxes went up by about 10 percent.
Today we see something similar. Only instead of just raising poor people’s taxes, they took out all the deductions that people rely on to keep their taxes tolerable.[2] They cut deduction for child care, mortgage interest deductions, and health care deductions. All this amounts to a tax increase for many in both the poor classes and the middle classes.
The argument of the GOP has not changed from the Reagan years. It is called “trickle down.”  The argument is that with less taxes on the wealthy, there are plenty of benefits the poorer classes get as the wealthy get richer. For example on Boak’s article:

The overarching promise made to the middle class by Trump and congressional Republicans is that lower taxes would fuel faster economic growth, which, in turn, would cause incomes to rise. Kevin Hassett, chair of Trump's White House Council of Economic Advisers, estimates that lowering the corporate tax rate to 20 percent from 35 percent would lead to an average income gain of $4,000 a year.”

The money is supposed to magically trickle down to us poor folks. But as the people of Kansas have learned the hard way “trickle down” doesn’t work. It is a sham and we now know it. Our Governor Sam Brownback has given lavish tax breaks to the wealthy in Kansas, all our services have been cut back and the results have been a huge economic failure.
The reality of the GOP tax plan has been revealed in Boak’s article:

David Kamin, a former Obama White House official who now teaches law at New York University, said the plan seems to have "no significant help of any kind for about the bottom 35 percent of income earners."
He added that the proposal could also "run up deficits significantly that would eventually have to be paid for and could threaten programs that do help low and middle income Americans whether that be health care coverage, Social Security, or investments like in infrastructure."

It is not a surprise that wealthy people support the Republican Party. But there are a lot of working class and middle class people who support the president and his tax plan. Such people are hard to understand. Every time this trickle down economics is tried it rips off of the middle and lower classes. They lose every time and yet they refuse to learn from their mistakes. We got fooled again naturally.

[1] Josh Boak, “GOP tax plan may offer little aid for many in middle class,” The Wichita Eagle, Nov. 4, 2017, p. 9A.
[2] Emma Dumain, “Potential pitfalls await GOP tax bill,” The Wichita Eagle, Nov. 4, 2017, p. 9A.

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