Why the GOP Tax Plan is Bad For America

Yesterday the GOP finally got around to releasing its official tax plan. The plan is a tax cut designed specifically to benefit the super wealthy. There is absolutely no reason to cut taxes for the wealthy. In fact, it is completely irresponsible.

We have a very large budget deficit. Americans in Puerto Rico are without food, water, adequate medical care or even electricity. Millions of Americans are without healthcare. One in five children will go to sleep hungry at some point this year. Additionally, congress just failed to fund the Children’s Health Insurance Program which provides medical care for millions of children. We have countless problems that require our collective response. Giving tax breaks to billionaires should not be one of our priorities.

The wealthy in this country have never had it so good. We should be raising taxes on the wealthy, not cutting them. Taxes on the wealthy do not and have not had a negative impact on economic growth. Real GDP growth in the 3 decades before ‘Reaganomics’, when the top tax rate was 70%, was higher than at any point after that. The top 3 presidents in terms of GDP growth rates were all Democrats and all had higher top tax rates than today (Johnson, Kennedy and Clinton).

The laws governing the structure of our economy have created one of the most unequal economies in the world. Since the ‘Great Recession’ almost ALL of new income generated in the United States has gone to the top 1%. Over the last 30 years, the percentage of income going to the top 1% has doubled. The percentage of income going to the top 1/10th of 1% has tripled. The percentage of income going to the top 1/100th of the 1% has quadrupled. Today, the richest 400 families have more wealth than the bottom 150 million. This is a new phenomenon for everyone alive today.

How is it that the super wealthy have been quadrupling their income while median household income has gone down? Did they get smarter? Are they working harder?

No, they didn’t. They have bought the government and changed the rules so that they can have more for themselves and less for everyone else. This GOP tax cut is just the latest legislation in a long line of bills designed to rig the economy in favor of those at the top. The super wealthy are doing better than they ever have and have a lower tax burden at any point post WWII, but it is not enough. They need more and with this tax cut they are getting it.

Ask yourself these questions:
Why is labor taxed more than investment income?

Why when I work to earn a living, do I have to pay a higher tax than someone who inherits tremendous wealth who, after this tax bill, will pay zero dollars in taxes?

Why is Donald Trump allowed to declare bankruptcy and renegotiate his debts, but if you declare bankruptcy you cannot renegotiate your student loan debt?

Why did the Republican led government repeal a rule last week that allowed defrauded bank customers to sue those banks in class-action law suits?

Why does the Social Security Tax cap at $127,200? Why is 100% of your income taxable for social security, but someone who makes a million dollars a year has only 10% of his income subject to social security tax?

How is it that in other western economies, such as Japan, the CEO to worker pay is 15-1, but in the United States it is more than 375-1.

The answers to these questions are all the same. The system has been rigged to benefit a certain group of people and it is dangerous for our country. The GOP tax plan is just the latest. The two years in which the top 1% got the greatest share of income in this country were 1928 and 2007. It’s not a coincidence. 


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