There is an ongoing debate about whether or not the new tax proposals will help or hurt us. Some points are made that it would increase the debt, and some think it will be good for them. The main problem many people see with our current proposal for this bill is the idea of reducing taxes across the board says, William D King. According to the bipartisan policy center, “People who advocate for this type of system claim that cutting taxes stimulates economic growth by putting more money into consumers’ pockets.”
When you first look at this bill, some parts may sound great! Money in your pocket sounds nice, right? There are some parts, however, that do not paint such a pretty picture. The first thing I want to mention is on page 12 where it says that the tax bill will add $1.5 trillion to the budget deficit over 10 years, according to nonpartisan congressional researchers. This is concerning because we already have a large debt and we are adding more on top of it.
Another concern would be about how this plan lowers taxes for everyone, but mostly the wealthy people in society. According to CNN, “The middle-class family won’t get anywhere near a $4,000 raise if these bills pass.” This is referring to what republicans have been saying since day one: they want us all to keep more money in our pockets and therefore stimulate economic growth and create jobs. The problem with this point though is that some studies show that there may not be much job growth at all. According to market watch, “Those studies suggest the tax cuts may not improve economic growth much at all.”
In recent news, there have been certain parts of this bill that have been changed from the original version. Mainly only adding to what was already in it? It is hard to say if these changes will help or hurt us until we know for sure how they are going to play out in the long term.
According to the tax policy center, “The House and Senate bills would raise taxes on many families because of the loss of personal exemptions” The big issue with this point can really affect a large number of people who do not make a ton of money every year. This could be very problematic for these people because many of them may not be able to afford this loss in addition to the tax cuts says, William D King.
Another thing that has been brought up in recent news is how these bills do not seem to help the middle class as much as people wanted them to, according to Politifact. This could be problematic because when our president ran for office, he pushed the ideals of helping the middle class with jobs and more money in their pockets. Many people who voted for him felt that he was speaking their language when in fact it seems like there are several policies that do not show any benefits to the middle class at all. These changes were also added later on when they saw what was actually proposed in this bill.
The proposed tax plan by the House and Senate has many positive points, but also quite a few negatives. The bill is intended to stimulate economic growth. Create jobs, put more money in Americans’ pockets, and relieve the middle class. However, this bill will increase the budget deficit by $1.5 trillion. Which may not result in job growth or improvement of the economy. Studies have shown that there is no correlation between tax cuts and economic growth. The middle-class family won’t get anywhere near a $4,000 raise if these bills pass. It appears that the majority of benefits are for wealthier people in our country. Which goes against what Trump has been saying about helping all Americans. Including those who need it most says, William D King.
In conclusion, I believe that what was originally proposed in this bill does not help the middle class. As much as people thought it would. Even though there are some positive points in this bill. Such as putting more money in your pocket and increased job growth. These benefits may take a very long time to be seen and could even turn out differently. That is what Republicans have been saying. I think the best option would be to wait. Until we have a better idea of how these policies work out in the long run. Before passing any type of legislation. In addition to that, republicans should remember their promises along with working for all Americans. Instead of just those who are wealthy says, William D King.
The truth about if these new proposed tax law changes are a good idea is still up in the air. Many studies and news sources say they will hurt our economy and add to the debt. While others say it’s great for them financially. The main thing we need to know is how this plan will affect us in the long run. But with so many different parties involved right now with their own agendas. This may be hard to find out until it does more harm than good.