Some things never change
What exactly will it take for Americans who vote Republican to get that Republicans don’t care about them? Their latest proposal should be a clue. Once again, Republicans want to make life easier for those who already have money as opposed to those who don’t. According to The Hill, Republicans on the Ways and Means Committee are making a move toward permanency of the Trump tax cuts. That would mean a renewal of the 20% deduction for businesses, maintain the higher standard deduction, and extend so-called lower tax rates for households. While, on its face, this tax cut seems to help Americans, the main focus is on helping businesses.
Two Republicans-Jodey Arrington (TX) and Pat Toomey (PA)-have come up with a plan to allow the write-off of machinery costs as tax deductions at the time of purchase as opposed to allowing it to depreciate over time. Anything that Republicans can do to take money from the tax rolls they are willing to do, especially if it helps their business-owning supporters. Pat Toomey needs to focus on his looming retirement and not new ways to stick it to the people on his way out. Vern Buchanan (FL) chimed in: “The tax cut will begin to phase out-a huge hit to industry like farming, manufacturing, and I’d just say business in general. They need capital the most.” No, people who live ordinary, everyday lives need their capital the most. They are listening to their own set of economists and not economists overall.
Most economists believe that cutting taxes will not only increase the deficit but that it will “add fuel to the fire” of inflation by increasing prices. Republicans are quick to blame President Biden for inflation, but they refuse to give him credit for decreasing the deficit. Instead, they want to increase it. Garrett Watson, an analyst with the Tax Foundation gave his opinion to The Hill: “The method of financing is what matters. If it’s deficit finances, that’s going to have the highest risk of those tax changes playing into inflation at least in the short run.” Ultimately, Watson believes that while these changes may appear helpful, they will ultimately fuel demand for products, which will drive up the prices of those products. In the end, those rising prices will continue to drive inflation. But Republicans cannot be convinced. Kevin Brady (TX) claims: “Unlike the cruel economy of President Biden, under the modernized Republican tax code of 2017 America’s economy was growing,” which he further claims boosted jobs. Pay no attention to the fact that as of February 2022, President Biden set a first-year record with 6.6 million jobs added. So much for President Biden’s “cruel economy.” The economy seems to be doing well despite Republican naysayers. You don’t hear them talking about the high cost of gas anymore because it has dropped. Economies ebb and flow; it’s natural, and if an economy remains strong-like America’s-there’s no need to dole out handouts to the already wealthy. We can expect more of the same should Republicans take control of the House.
Shirley is a former entertainment writer and has worked in the legal field for over 25 years