If you've been watching the news lately, I'm pretty sure you've heard about Donald Trump's new tax bill. He's been raving about how the new tax plan will build the economy. If you're like me, it takes a little longer to decipher the political language news networks use. I need more than 30 seconds to process this information. Most of the time, I just want the anchors to get to the point.
After a little research I found that $1.5 trillion in tax cuts, which sounds good to the ear, might not be so great. Here's another opinion. Here are my reasons why I do not like this new tax plan.
Usually, it's a long process for a major tax bill to be passed because of revisions and analysis by the powers that be, yet this new bill is moving fast.
On December 1, Senator John Tester tweeted: "I was just handed a 479 page tax bill a few hours before the vote," and then said, "one page literary has hand scribble policy changes on it that can't be read."
Most americans believe it is being rushed to swindle America. The Time Inc. tax calculator estimates the following:
- A person making $25,000 a year would see a cut of about $125 the first year, and by 2027, a 0 percent tax cut.
- An American who makes $170,000 a year would save about $2,200 the first year, and by year 2027, see a tax cut of about $2,020.
- An American that makes $10 million or more will receive a tax cut of about $260,000 the first year, and in 2027, see a tax cut of about $150,000 a year.
Why would Donald Trump give the richest Americans the bulk of the $1.5 trillion tax cut?'
His reason for giving the wealthiest a huge tax cut is based on what is labeled as Trickle Down Economics. According to Wikipedia, "trickle down economics is an economic theory that advocated for reducing taxes on businesses and the wealthy in the society as a means to stimulate business investment in the short-term and benefit society at large in the long-term." That said, in a survey at the University of Chicago featuring 38 prominent economists, one said it would work, and the other 37 proclaimed that they did not see any substantial growth in the plan.
Sam Brownback tried
Sam Brownback, Kansas' Republican Governor, applied the trickle down tactic. He and the GOP-controlled legislature cut the already low tax rates, "a shot of adrenaline into the heart of the Kansas economy," Brownback explained. The budget ended up being disaterous. Growth rates fell behind neighboring states, and it was a big mistake.
So, does $1.5 trillion in tax cuts still sound good to you?
