Middle class tax cuts, you must be kidding me.
Only if you make $1 million, then you start paying the 39.6 percent rate on all over $470,ooo, but under the Republican proposal you don’t pay that rate until you hit $1million, saving you more than $24,ooo each year. But that is alright, tax “reductions” for individuals expire after eight years. That is the only way they can make one plus one equal three.
Business tax breaks are a different story. Their top rate goes from 35 percent down to 20 percent, that is a cut of over 40 percent and they lost very few tax deductions. For instance individuals are losing the deduction for state and local taxes but businesses retain that “loop hole.” And business reductions are permanent.
Most authorities say that, with all of their deductions, most businesses only pay in the 22 percent rate range. Imagine how little they will pay when you lop 15 percent off of that.
The real kicker is that they really believe when you cut taxes that revenues actually go up. Ask the people in Louisiana or, heaven forbid, Kansas or even here in Ohio. Every state that has played that game has budget problems and less than the national average in economic and job growth.
The last time the tax code was updated was in 1986 and it took 18 months of bipartisan consultation. This time it is 6 months of behind closed doors meetings by a handful of like minded people. What could possibly go wrong?
Clarence C. Roller, Lima