Pat Ferguson: GOP tax plan will hurt Americans
November 9, 2017
Tax reform is filling the news. Reducing taxes is appealing. However, the lure of the GOP tax plan is superficial and will hurt America and the majority of Americans.
Is it even needed to encourage economic growth? Once out of the Great Recession, the economy is doing well with the present tax system so the various cuts aren't needed for stimulation. The cuts would create an increase in the deficit of approximately $3 trillion to $7 trillion over a decade.
That's a bad deal for a stimulation that is not even needed.
Most businesses already pay 25 percent or less in taxes. So lowering the corporate tax from 35 percent to 25 percent will only help the extremely prosperous conglomerates.
Eliminating the Estate Tax only helps for an estate over $5 million: just the top percent of citizens. Californians can deduct interest for property taxes, mortgages, and state and local taxes. That will be eradicated. Maximum deposits into 401K retirement funds reduced by over half.
Is this what you want?
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Even with some marginal additional tax benefits, if you make $89,000 or less, you will be paying more taxes. So will some others.
How will this multi-trillion debt be managed? Supposedly, it will be made up from trickle down economics making up the difference over the years. The economy would need a growth rate of 4.5 percent, more than double its projected rate. That didn't work under Reagan. Kansas tried for seven years and the legislature, GOP and Dems, rebelled against their governor to repeal it. The rest of the deficit will be partially made up by $1 trillion cut to Medicaid and $473 billion cut to Medicare over the next decade, plus slashing other programs low-income individuals rely on.
Is this what we want? Tremendous cuts for the top 1 to 8 percent to the detriment of the rest of us?
If not, call Rep. LaMalfa and Rep. McClintock to express your opposition at 202-224-3121
"Taxation is the price which we pay for civilization, for our social, civil and political institutions, for the security of life and property, and without which, we must resort to the law of force."
— Supreme Court Justice Oliver Wendell Holmes
Pat Ferguson lives in Meadow Vista.