Wednesday, November 8, 2017

Is it a middle class tax cut? Or a taxcut for "The Rich"???

Who knows?  The Democrats claim it's a tax cut for "The Rich".  Republicans say it's a tax cut for the middle class.  Who to believe?   The bill is still secret, and is probably 1000 pages long and written in deep gobble-de-gook, so even if I found it on the Web, it wouldn't mean anything to me.  I only read English.  I cannot focus on 1000 pages.  The Journal favors the bill, but it prints a chart showing that a few classes of taxpayer will be paying more ten years from now. 
   The Journal says that a lot of its provisions have time limits of less than ten years.  That hurts economic growth.  Lots of projects, even just buying a home, let alone building a new factory, take more than ten years to pay off.  And the payoff always depends upon the tax burden laid on the project.  If we don't know what the tax burden will be ten years out, we are less likely to do the project. 
   
   Living in NH, which fortunately lacks a state income tax and state sales taxes, I'm all in favor of ending the deduction for state and local taxes.  My mortgage is paid off, so the mortgage interest deduction does me no good.  My children are grown up, married, living in their own homes, so child deductions don't do me any good. 

   The Republicans have to pass something or they get voted out of office next year.  They already failed to repeal Obamacare, failure to pass tax reform will confirm voter belief that the Republicans are a bunch of blow hard RINO's, no different from Democrats.   And they deserve payback at the polls for failing to live up to their promises to reform taxes and repeal Obamacare. 

  

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