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Rich get richer and poor get poorer

posted Jan 9, 2018, 4:08 PM by Oconee Democratic Party

Posted on December 27, 2017, The Journal, Seneca SC


Sen. Tim Scott misrepresented the benefits for the American people in the recently passed Tax Cut and Jobs Act (The Journal, Dec. 21), calling it a “Christmas gift for the American people.” This law is a Christmas gift for only the wealthy.

Republicans rushed to push this legislation forward in a highly irregular manner with no opportunity for open bipartisan discussion and in spite of non-partisan economists’ warnings that the numbers did not match the claims. Pressured by wealthy donors who threatened to pull money from the campaigns of those who failed to vote for this bill, the Republican Congress caved and pandered to these self-interested individuals while ignoring the concerns of their constituents — just give Trump something to sign. Current polls indicate that 55 percent of American voters disapprove of this law. Perhaps they will hold their representatives accountable in the 2018 and 2020 elections.

The bottom line is that the rich get richer and the poor get poorer with passage of this legislation.  Some members of the middle class may initially see a few hundred extra dollars in their paychecks, but the non-partisan CBO analysis indicates that half of all Americans will be paying more taxes by 2027. The initial temporary crumbs tossed to some members of the middle class pale in comparison to the $11 million-$15 million a year in tax benefits estimated for Donald Trump, who asserts that he and his wealthy cronies get no benefits from these tax cuts. The tax rates for the wealthy drop from 39.6 percent to 37 percent. Non-partisan economists reveal that 83 percent of the benefits in this law will go to the top 1 percent.

Large corporation owners applaud this plan. It permanently reduces their tax rates from 35 percent to 21 percent. Republicans maintain that increased profits from this reduction will be used to increase wages and jobs. Others argue that increased profits will go into dividends for investors and further line the pockets of the wealthy.

Removal of the individual mandate of Obamacare will deny 13 million people health care insurance and increase the premiums for others, who may then be forced out of the health care program.

The cost for the tax cuts will add $1.5 trillion to the national deficit over 10 years. The Republicans claim that increased economic growth will pay for the deficit. However, 37 out of 38 leading economists surveyed by the University of Chicago disagree. Numbers do not lie.

Carolyn S. Brown