By Robert Carbery
The GOP’s tax reform bill passed through the House of Representatives for the second time this week on Wednesday by a vote of 224-201. Once passed by the Senate, the bill will be sent to President’s Trump’s desk. It will be the largest legislative achievement of the almost one-year long presidency that no one saw coming.
“Today, Congress approved a once-in-a-generation tax reform bill. This is the end of a long journey to deliver major tax relief to the American people,” House Speaker Paul Ryan stated.
While Democrats and the mainstream media continue to call this move by the Republicans to bring tax relief to millions of middle class Americans as only a way for the GOP to enrich already well off individuals while taxing greedy corporations even less, it is still true that some people in already high-taxed blue states could suffer somewhat of a blow. Nonetheless, this is an overall net positive for making America. We will be made great again with this once-in-a-lifetime tax overhaul. The left is pushing a false narrative as it is becoming clear that the middle class will greatly benefit from this much needed bill. And yet, House Minority Leader Nancy Pelosi even went so far as to call the tax bill worse than slavery. Politicians will do or say anything to make the other side look like despicable.
But this bill is very much needed and will give many Americans more cash in their pocket while giving less to Uncle Sam by 2019.
Middle-income households will get more than $61 billion in tax cuts in 2019 under the GOP tax plan passed by the House this week, according to the Congress’s Joint Committee on Taxation (JCT). This amounts to 23% of the total tax cuts going directly to these individuals, many of whom are struggling to make ends meet. However, in a decade, by 2027, these households will be hit with a net tax increase as the tax cuts proposed are set to expire under the current language of the soon-to-be law.
The calculations are based on the committee’s estimates of cuts going to households that make $20,000 to $100,000 per year in wages, benefits, and dividends. Trump has promised a benefit to middle class families during this new tax law coming either at the end of this year or first thing next year. The most affluent households in America, those earning more than $500,000 a year, account for 1% of tax filers, but would also get $61 billion in cuts during the first year of the new tax plan, according to the analysis by JCT.
Even moderate Maine Republican Senator Susan Collins supports this tax reform bill now. Kentucky Senator Rand Paul, who was likely attacked by a partisan neighbor earlier this year, worked overtime to ensure this bill is as fiscally conservative and pro-American taxpayer as possible.
Today, the Senate delivered on its promise of allowing Americans to keep more of their hard-earned money, a commitment I worked to hold it to by fighting to make sure the bill became a bigger and better tax cut and included repeal of the Obamacare individual mandate.
— Senator Rand Paul (@RandPaul) December 20, 2017
Trump officials swear that these tax cuts will help individuals just as much as it will help corporations because it induces companies to hire more and increase the wages of workers. However, the recent polls suggest that these tax cuts are not very popular for some reason. A Quinnipiac University poll released just last week showed that 55% of those surveyed disapprove of the tax plan with 26% in support. But is this due to the mainstream media’s negative coverage of it so far? Reagan’s tax cuts in the 1980s were met with similar skepticism after eventually boosting the economy and increasing wages for the vast majority of Americans. We will see if this tax bill does the same.
The middle class of America will see many benefits, but some will be worse off in the end. The Tax Policy Center found that more than 91% of households making $48,600 to $86,100 per year would receive a tax cut in the next year. Still, 7.3% would receive a tax increase and almost 11% would see an increase by 2025.
Taxpayers are worried that their taxes will go up. Americans are fed up feeding money into a bloated bureaucracy in Washington DC more concerned with its own existence versus serving the taxpayers it exists to serve. It is time to revamp the tax code and make it more taxpayer friendly. There will be bumps in the road but it is a strong step in the right direction.
The GOP tax bill will help more Americans than it will hurt. Time to get on board and stop declaring this law as anti-American because it is anything but. Time to grant much needed relief to taxpayers from California to Maine. We have to do this or else the Republican Party will lose its grip on power in DC.
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