The Democrat/media assault on the GOP tax reform bill continues even as that bill is almost certain to pass this week. Just today, Vox is calling the bill an "American betrayal". The Philadelphia Inquirer is calling it the worst bill since the Fugitive Slave act of the 1850s. Other outlets continue in a similar vein. Democrats are running protests in various places against the bill (although the turnout at the protests is rather meager.)
I continue to try to understand the objections to the bill from the left, but am still left with no understanding of any cogent objection. Many Democrats/media tell us these are tax cuts for the wealthy with the cost paid by the poor. That sounds good, but it's just a lie. The bulk of tax cuts go to two groups: American businesses and middle income Americans. The left likes to say that tax cuts for business is a gift to the rich, but that too is a lie. Tax cuts for businesses will mean more jobs and more rapid economic growth. That helps everyone, not just the rich. There's special benefits in the tax bill for small businesses, the ones that create most jobs. Again, that's good for everyone. And the second biggest cuts (after business) go to the middle class which gets about a quarter of all tax cuts. Put that together with business and you have the bulk of the cuts.
Another complaint from the left about the bill is that 11 million people will lose their health insurance. This is not just a lie; it is an idiotic lie. It is based upon a projection from the CBO. That group estimates that over five million people now on Medicaid will choose to no longer get free health insurance once the individual mandate is gone. Think about that. Why would someone getting FREE health insurance drop it because of the end of the individual mandate? The others who supposedly will drop their coverage are also people who will get the same subsidies as now. The price after subsidies will not go up. Again, some people may choose to go without insurance, but no one will LOSE their insurance.
A third complaint is that the bill cuts the top rate and also benefits the wealthy. This is a variation of the first complaint. Remember, though, that the top 10% of individuals by income pay something in the area of 90% of the income taxes. You can't cut taxes without giving some benefits to the people who pay the taxes. It's another complaint that just makes no sense.
I do wonder what will happen next February when the new withholding tables kick in. All those people who have believed the Democrats/media story that they won't get a tax cut will suddenly see that this is not true. They will get a tax cut. Maybe the Democrats and media are starting to get worried about that.
I continue to try to understand the objections to the bill from the left, but am still left with no understanding of any cogent objection. Many Democrats/media tell us these are tax cuts for the wealthy with the cost paid by the poor. That sounds good, but it's just a lie. The bulk of tax cuts go to two groups: American businesses and middle income Americans. The left likes to say that tax cuts for business is a gift to the rich, but that too is a lie. Tax cuts for businesses will mean more jobs and more rapid economic growth. That helps everyone, not just the rich. There's special benefits in the tax bill for small businesses, the ones that create most jobs. Again, that's good for everyone. And the second biggest cuts (after business) go to the middle class which gets about a quarter of all tax cuts. Put that together with business and you have the bulk of the cuts.
Another complaint from the left about the bill is that 11 million people will lose their health insurance. This is not just a lie; it is an idiotic lie. It is based upon a projection from the CBO. That group estimates that over five million people now on Medicaid will choose to no longer get free health insurance once the individual mandate is gone. Think about that. Why would someone getting FREE health insurance drop it because of the end of the individual mandate? The others who supposedly will drop their coverage are also people who will get the same subsidies as now. The price after subsidies will not go up. Again, some people may choose to go without insurance, but no one will LOSE their insurance.
A third complaint is that the bill cuts the top rate and also benefits the wealthy. This is a variation of the first complaint. Remember, though, that the top 10% of individuals by income pay something in the area of 90% of the income taxes. You can't cut taxes without giving some benefits to the people who pay the taxes. It's another complaint that just makes no sense.
I do wonder what will happen next February when the new withholding tables kick in. All those people who have believed the Democrats/media story that they won't get a tax cut will suddenly see that this is not true. They will get a tax cut. Maybe the Democrats and media are starting to get worried about that.
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