One definition of insanity is doing the same thing over and over again expecting a different result each time. According to that definition, insanity must be prevalent throughout the American public. In 2001 and 2003, Republicans passed two tax cut bills 1) Economic Growth and Tax Relief Act and 2) The Jobs and Growth Tax Relief Act. It is estimated that these two tax bills cost the American public $3.7 Trillion over the course of a decade.
During that time in the early 2000’s, Republicans promised that these tax cuts would spur economic growth, create thousands of jobs, increase incomes for working families, and encourage corporate investments. All they needed, us (the American public), to do was to back their tax plan and look the other way as they gave trillions of dollars to corporations and the wealthy elite.
The results of those Republican tax cuts were staggering. The rich in this country got a lot richer, the poor got a lot poorer, and corporations, instead of reinvesting in American, horded their profits, sent jobs overseas, and gave lavish dividends to their shareholders. In all, everything which Republics promised the working-class in this country failed to come to fruition.
Now in 2017, Republicans are once again asking the American public to trust them. Yet again they are promising jobs, corporate investment, economic growth, and increased wages. They tell us that we can have all of this if we only allow them to (yet again) give trillions of dollars to corporations and the wealthy elite. The Republican tax bill does the following:
• Eliminates the estate tax for people inheriting $4 million or more worth of assets. Therefore, the major beneficiaries of this tax elimination would be rich people!!
• Eliminates a few corporate loopholes, but keeps in place several large loopholes for corporations to pay less in taxes.
• Lowers the amount of taxes corporations pay from 35% to 20%. Republicans justified this tax decrease by saying they would cut corporate loopholes, but as mentioned, they cut out very little loopholes. So essentially some corporations will be paying less than 20%.
• Eliminates the $4,050 personal exemptions which many people used to write off a number of household or work related expenses like student loan interest and other items. While the child credit has gone up by a small amount, the money you lose by the exemption being taken out essentially makes the increased child credit to no affect.
• Eliminates the local and state tax deductions. This allowed many people to deduct their local and state taxes on their federal form. This will no longer be allowed essentially placing more of a financial burden on working-class families.
• Eliminates the Alternative Minimum Tax which rich people like Donald Trump had to pay. This tax was enacted to stop rich people from getting around not paying their fair share in taxes.
It’s clear for everyone to see that this Republican tax bill is nothing more than another gift to the wealthy elite of this country at the expense of working-class people. The benefits in this bill for working-class families amounts to pennies in comparison to the hundreds of millions which will go to corporations and wealthy elites. The question I’m asking is, will the American public be bamboozled again? Republicans claim that by providing corporations and the wealthy with tax cuts, eventually those corporations will reinvest in the economy and create more jobs. However, the facts tell us that this didn’t happen the last time Republicans passed a tax bill and I would be willing to bet it will not happen this time. In fact, when corporation received their last tax cut they held on to that money and refused to reinvest it (read this NYT article: Why Corporations are Hording Trillions). The most revolting aspect of this Republic tax bill, aside from its pandering to the wealthy, is the fact that it will cost the American tax payers $1.5 trillion and add to the nations deficit. Now that’s a rotten deal!