Letter: Who really benefits from GOP tax plan? Hint: It’s not low- and middle-income Americans
Editor’s note: Find a cited version of this letter at http://www.vaildaily.com.
I read with interest Congressman Scott Tipton’s article on the GOP tax cut proposal (“Tax Cuts and Jobs Act will help Colorado,” Friday, Nov. 24). Our system needs repair, but for average citizens waiting for a fix that will help them, a close look at the proposal is important.
Since we as a country are interested in winners and losers these days, let’s first look at who wins. According to the Tax Policy Center, begun by economic advisers from the Reagan, Bush and Clinton administrations, there will be $2.4 trillion added to the deficit in 10 years. (The Congressional Budget Office only has the deficit rising by $1.7 trillion.) Not a good record for deficit hawks, but a win is a win.
The top 1 percent will gain half of the overall benefits, and the bottom 95 percent will have “modest” tax cuts that will expire at the end of 2025 when many Congressmen who brought you this new normal are out of office. Ending the cuts is a political move to bypass Congressional rules and get taxes done with 51 votes and no Democratic support, but a win is a win.
Out of 42 top economists the University of Chicago Booth School of Business asked to review the tax bill, only one believes it will help the economy. And when the Wall Street Journal’s CEO council met with White House economic adviser Gary Cohn, the majority indicated that tax cuts would not make them invest more or raise wages in their companies.
And what is a congressional bill without the goodies slipped in between the lines? Medicare will be cut by $25 billion, and medical expenses will no longer be deductible. Embryos will now be beneficiaries of college savings funds, but graduate students’ taxes will increase 400 percent and there will no longer be help with student loans.
The GOP will end estate tax; the first $10 million is already exempt, and the current president and his cabinet will receive the gift of the century when that happens: Each one will save billions, with a B.
Rep. Tipton may see this GOP plan as beneficial to the low- and middle-income Americans, but most sources I read indicate that the greatest benefit goes to the wealthy. The question we all need to ask ourselves, and our Congressmen, is who really wins?