When President Trump was campaigning for office he made a promise to the American people that he would push for tax reform that benefitted the middle class.
Now it appears he is finally making good on that promise by proposing a plan that has White House economic advisor Gary Cohn “very confident that Americans are getting a great deal here.”
During an interview with ABC’s George Stephanopoulos, Cohn stated confidently that, with Trump’s tax plan, “the biggest winners will be the everyday American workers.”
“A typical family of four earning $55,000 in America today is going to have a substantial tax decrease,” Cohn said when pressed by the former Democratic strategist. “Everything we have done in this tax plan is to solve for the middle class.”
What exactly is this tax plan, and why are democrats vehemently opposed to it?
“This is a once-in-a-generation opportunity, and I guess it’s probably something I could say that I’m very good at. I’ve been waiting for this for a long time. We’re going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans. And we are going to bring back the jobs and wealth that have left our country and most people thought left our country for good.”
-Donald Trump, during a speech in Indiana
First of all, the plan will cut the corporate tax rate from 35% to 20%. Proponents of this say that cutting the tax rate will lead to job creation, and the growing of wages. With a lower corporate tax rate, people might be more inclined to start their own businesses, and be able to keep more money to hire more employees.
Opponents of such an idea believe that a massive cut like this will only benefit the wealthy. They also don’t see how we as a nation are supposed to cover this budget shortfall, in regards to the ever-rising national debt. Both of these may make people “feel” yucky, but are they genuine concerns?
The plan will also reduce the number of tax-brackets down to three, while also eliminating the estate tax, and doubling deductions for families from $12,000 to $24,000.
This has raised the question “how will we offset the cost of these cuts?”
Unfortunately for politicians they might have to make some tough decisions. For one thing, repealing failed government experiments (Obamacare) would surely save us a lot of money. Eliminating other entitlements would also offset a lot of the costs, but these are things that might lose someone votes come election time.
Politicians, in large, do not trust the average American to make smart decisions with their money. This is why they feel the government should control things like healthcare, education, and social safety nets.
The purpose of a tax cut is to give Americans more of their own money to make those kinds of decisions for themselves. The question we need to ask as Americans is “do we trust our politicians to make decisions for us better than ourselves?”
I’d like to think we know what’s best for ourselves, but that could be wishful thinking.