The republican US senators are up to their old tricks and chicanery to make it appear that their tax cuts proposal definitely benefit the middle class and the anticipated deficit growth will be neutralized with economic growth and the receipt of additional revenues. All of this is a con on the American peoples.
Here’s the goal of the republican’s game which is to provide income tax savings for their wealthy donors and big business. It has been reported that the big donors have threatened to cut off funds if the US congressional lawmakers do not pass a tax cut bill.
To make sure that the senate could more easily pass the bill, they are determined to pass this bill under the senate’s reconciliation rules were only a majority of 51 votes are needed which can then be voted on by just republican votes. The rule is that the tax bill cannot cost more than $1.5 trillion dollars which is becoming a mathematical challenge.
As they add amendments to the bill to insure more republican votes, they still have to abide by the parameter of $1.5 trillion dollars which is becoming mission impossible.
Thus the idea of eliminating the Obamacare mandate which requires everyone to have healthcare insurance or to pay a fine. This delivers a major blow to Obamacare, because without this mandate, younger healthy people will gamble by not purchasing health insurance. The non-partisan Congressional Budget Office professionals predict that about 13,000 consumers will drop out and the premiums will increase by 10% but the republicans would have an additional $300 billion dollars+ to play with to pay for their tax cuts bills.
Then to make the numbers work, they have made the corporate tax cut savings a permanent feature but the middle class tax cuts end cold turkey on 2026. How do the senators think this is going to happen while the middle class folks are looking for their hides. Predictably, they will extend the middle class tax cuts which will in turn, blowup the deficit.
To help with the numbers, these same republicans will then have to tackle entitlement spending which includes Social Security, Medicare and Medicaid.
The truth is that “we the people” cannot afford this republican tax cut bill where the stock market, business economy is booming. Corporations have been making record profits while hoarding trillions of dollars in cash. The business community has chosen not to share the spoils garnered through increased productivity with its front-line workers in the form of increased salaries and/ or by investing in the business to create additional jobs. The average Joe worker has been enduring stagnant wages for the past two decades with less buying power.
As per a 11/14/17 Hill report by Nev Elis , “GOP tax bill could trigger automatic cuts worth $136 billion from mandatory spending in 2018, including $25 billion in Medicare cuts, if Congress doesn’t find another way to offset its deficit increases, according to the Congressional Budget Office (CBO).”
Here is the rest of the story…
On November 16, 2017, Heather Long of the Washington Post penned the following report, “Senate tax bill cuts taxes of wealthy and hikes taxes on families earning under $75,000 over a decade.”
“The tax bill Senate Republicans are championing would give large tax cuts to millionaires while raising taxes on American families earning $10,000 to $75,000 over the next decade, according to an analysis released Thursday by the Joint Committee on Taxation, Congress’ official nonpartisan analysts.”
“President Trump and Republican lawmakers have been heralding their bill as a win for hard-working Americans, but the JCT report casts serious doubt on that claim. Tax hikes for households earning $10,000 to $30,000 would start in 2021 and grow sharply from there. By the year 2027, Americans earning $30,000 to $75,000 a year would also be forced to pay more in taxes even though people earning over $100,000 continue to get substantial tax cuts.”
“What is happening now is just shameful,” said Senator Ron Ryden (D-Oregon) in the Senate Finance Committee hearing shortly after the JCT tables were released. “I don’t know how anybody can go home and explain why it’s a good idea to hike taxes on parents who barely stay afloat to pay for a massive corporate handout.”
“Senator Orrin Hatch (R-Utah), the lead author of the GOP tax bill, dismissed the table as an accounting gimmick.”
“Anyone who says we’re hiking taxes on low-income families is misstating the facts,” Hatch said. “Obviously we have no intention of raising taxes on those families. Every Republican on this committee has been committed to providing tax cuts for every income cohort.”
“Republicans and Democrats are fiercely debating whether what’s happening to low-income Americans is truly a tax hike. According to the JCT, the average tax rate for people working full-time minimum-wage jobs and those earning $20,000 to $30,000 would go from 3.7 percent to 4.2 percent. Meanwhile millionaires’ average tax rate would fall from 32.4 percent to 30.9 percent.”
“Hatch and other Republicans say that low-income people get a choice about whether to buy health insurance or not. If they no longer wish to buy insurance, they would not get government subsidies anymore to help make their health insurance more affordable. JCT is calculating that as a tax increase, but Republicans say it is “ridiculous” to look at it that way. The subsidy was being paid to the insurance company, not to individuals.”
Democrats point out that it’s more than the insurance subsidy at stake. By 2027, all Americans earning less than $75,000 see an increase, partly because the individual tax cuts go away after 2026.