Don’t be fooled by all the GOP rhetoric about their proposed tax plan. Study its effect on you before jumping on board. And even more importantly look at what effect it will have on your children. Of course, we also have to understand that the GOP is primarily a party that gives the most to their rich donors. They are the ones who will primarily benefit from this current plan. Since the “trickle down” theory they have constantly used in the past has never come to actually happen why should we expect it to happen this time. Too much of the increased income just end up in off-shore accounts.
Here is a little information to consider from my friends at the New York Times:
First is the poster child family Paul Ryan keeps talking about, a family with two children making $59,000 a year. In the first year of the Cut Cut Cut Act, such a family would indeed receive a tax cut. But this cut comes from several special tax credits that are basically loss leaders to help sell the plan; they all either expire in later years or will get eroded by inflation. By 2027, with the plan fully phased in, that exemplary family would actually be facing a significant tax increase relative to current law.
Second, consider someone who is much further up the scale, but still works for a living. In the movie “Wall Street,” Gordon Gekko sneers at “a $400,000-a-year working Wall Street stiff flying first class and being comfortable.” What would happen to that guy? Well, I’ve done some back-of-the envelope calculations: If you ignore deductions, he’d end up paying a few hundred dollars less in taxes. But once you take lost deductions into account, especially reduced deductions for state and local taxes, he almost certainly ends up facing a tax hike, not a cut.
This tax cut is another example of how the GOP has moved from their roots. They used to be the party of fiscal responsibility. They used to hate deficits and scream about how their opponents will put debt on their kids and grandkids for some immediate person relief now. I always admired them for that. But they openly admit that their current plan will raise the federal debt by trillions of bucks.
Now I see that they have also put in a provision to cut off all funding for people who can’t afford healthcare. They are bound and determined to keep people from getting the healthcare they need. I just don’t understand their rationale for these cruel actions? Mr. Ryan, who is the chief antagonist of this tax plan doesn’t seem to think it is necessary to explain so that tells me something very basic about his character.
From the above quote, we discover that the things they put in it for the middle class will expire within ten years while all the cuts for the rich are permanent! Watch out for what you hear from either party. That is especially true in the next year where one has all the power.