The “tax cut reform” bill currently winding its way through Congress is being peddled by Paul Ryan and his cohorts as a middle class and pro-growth tax cut. This is a lie.
First of all, the typical middle class family would receive an average tax cut of $1,281 per year. After 10 years, they would expire. Also, other deductions would be either reduced, decline or eliminated. Meanwhile, the wealthy, as well as corporations, would reap billions of dollars of tax cuts. Corporate tax cuts would be permanent. At a time of record profits, why do they need a tax cut?
Secondly, corporations who have profits stockpiled overseas would be allowed to bring that money back at a lower tax rate to presumably reinvest in our economy and create more jobs and grow the economy. However, many economists predict that the following would happen: 1) the money would go to pad corporate executive salaries, 2) enlarge stockholder portfolios, 3) buy back stocks by corporations to increase their wealth, 4) failure to invest that money to grow the company and economy and 5) minimize pay raises to employees.
This proposed tax cut, trickle-down economics on steroids, is an ethical and moral disaster. Just look at the recent Kansas experiment. The state almost careened into bankruptcy, schools had to close early with Fridays off to save money and roads and other infrastructure deteriorated. Contact Paul Ryan and tell him to stop lying.