"When we consider the new Republican tax plan, the most important factor is not the immediate small tax cut that some upper-middle-class families will get for a few years (until it expires)."
According to the liberal/progressive Tax Policy Center, the top 50 percent of taxpayers represent 97 percent of taxes paid while the bottom 50 percent account for 2.7 percent. While an even greater impact, the top 20 percent, pay 88 percent and 45 percent of all tax filers pay zero income tax.
So why is it a surprise to some that any reductions in tax schedules will logically accrue to those who pay the most taxes? The Center also acknowledges that 90 percent of the middle class will receive an average tax cut of $1,600 in 2018 while the obstructionist Democrats will have had nothing to do with this benefit.
The biased left wing and cheerleader of the Democratic Party, Congressional Budget Office, an entity having earned a well-deserved sordid reputation for making faulty estimates (witness it’s ridiculous assumptions and projections on Obamacare) attempts to paint a negative portrait of tax reductions as an economic disincentive. They choose to ignore the overwhelming successful Kenney, Reagan, and Clinton administrations supported by bipartisan support of how tax reform stimulated year over year economic growth, reduced unemployment and a rise in personal incomes across the board.
While the economy then was propelled by 3-to-4 percent year over year expansion, a stark contrast were the eight languid years of the Obama terms where the economy limped along at a rate that never reached 2 percent year over year growth. That unfortunate period was hampered by excessive regulations, higher taxes, rising unemployment, out of control entitlements, and excessive trade imbalances.
Noteworthy also is that during this dismal eight-year period our country accumulated more national debt than all prior administrations combined. CNS News reports that the total of $9.3 trillion while the current tax reform will add $1.3 trillion over the next eight years. Why no handwringing and doomsday scenarios then?
It is distressing and disingenuous that so-called “champions” of the middle class, hypocrites Nancy Pelosi and Chuck Schumer, announced at the outset that their party would not support any tax reductions, but it was interesting to observe their howls when their rich friends and financial supporters would be impacted with a ceiling on real estate and state income tax deductions in Democratic, high-tax states on both coasts. Even more strange was the collective hyperventilating over the removal of the onerous penalty for not purchasing insurance. Instead of rejoicing that individual rights and choice had been restored they and their enablers in the media presented a false narrative featuring income redistribution and class envy rhetoric and no alternatives. Now if individuals make the decision to not have insurance for whatever reason they will not be forced to pay a penalty to the government.
Instead of promoting anti-American identity politics, class envy, political correctness, higher taxes, ever more constricting regulations, misrepresented environmentalism and hatred of this president, corporate America and those with a more historic and traditional pro-American agenda, it would be refreshing to see a more positive platform from what has become a Democratic Party controlled by socialists.
Bernard M. Cygan has lived in Prescott for 14 years and is a retired president of a major financial institution with more than 40 years’ experience in the financial services industry.