CHARLESTON, W.Va. — For Jason Huffman, state director of the West Virginia chapter of Americans for Prosperity, the congressional efforts to pass tax legislation is an opportunity to spur economic growth. "This is a huge step for taxpayers. This is going to make American businesses competitive again, it's going to put more money in the pockets of West Virginians and we've championed this issue since day one," he said. Yet from the viewpoint of Ted Boettner, who serves as the executive director of the West Virginia Center on Budget and Policy, lawmakers are serving the wealthiest Americans and corporations by pushing legislation that protects tax cuts for high-income earners. "This is just a horrible waste of resources," he described the …show more content…
The JCT reported an earlier version of the Senate tax bill would increase deficits by $1 trillion between 2018 and 2027, noting the number accounts for around $408 billion in economic growth. The Congressional Budget Office reports the total addition to the deficit could trigger a $25 billion cut to Medicare. Huffman discounted these reports, saying the JCT previously underscored the economic growth that took place as a result of tax legislation under former President George W. Bush. "They discounted a lot of positive growth effects of tax reform package," Huffman said of the recent analysis. "That's one government analysis, granted what some folks would call 'mainstream.' History proves that tax reform — tax cuts specifically — they grow the federal revenue. Why? Businesses make more money and people have larger paychecks and they are putting more into the economy." Boettner said a congressional bill would hurt most West Virginians, noting how the individual tax cuts in the Senate plan would expire in 2026 while the corporate tax change would remain. "People say, 'Oh, you're going to get tax cuts up front, but you're going to get tax increases at the end. Don't just look at the end,'" he said. "That's part of the bill. That was their choice to make a lot of middle-income West Virginians pay for tax cuts for the
On October 19, 2017, the Senate approved a budget that would aid Republican efforts to create tax cuts in a vote of 51-49. In essence, this budget would expand the federal deficit by 1.5 trillion dollars over a span of 10 years. According to Republicans, the intent of these tax cuts is to create more jobs as well as providing more income to Americans as a whole. However, many Democrats are starkly opposed to this budget because of how it will increase the federal deficit as well as reducing the potency of federal revenue provided by taxes. With the budget being approved by the Senate, it is now up to the House to adopt its version of the budget to officially make it into law.
In Title IX named, Revenue Provisions, will provide a middle-class tax cut to help those families and small business owners have more affordable insurance coverage ("Read the Law | HealthCare.gov", n.d).
Since taking office Sam Brownback has hit Kansas people with many taxes and also tax cuts that cripple the financial state of Kansas.”Brownback wanted to eliminate the earned-income tax credit, which had benefited the working poor”(Judis). By taking this away Sam Brownback hurt the everyday working class person by taking away this money. Some of the poor working
NY Times: In the beginning of the article, it discusses how the GOP is removing the individual mandate within the Affordable Care Act along with the attempt at tax cuts. According to the Republicans, every individual’s tax cut will expire in the end of 2025 in order to speed up the passage of the bill. They also say that by repealing this mandate, Republicans would save the U.S. billions of dollars over the next 10 years. Basically, the mandate repeal would save over $300 billion over those 10 years, but would result in 13 million less citizens with health insurance by the end of that decade. On the other hand, by repealing the individual mandate, the Republicans run the risk of reigniting the debate over health care which they have been
The Senate plan is taking shape as Republicans digest the drubbing they suffered on Tuesday night in affluent suburbs across the country, many of them represented by Republicans in the House. Those areas are stocked with well-off voters who would be disproportionately hit by the elimination of state and local tax deductions.
As a result, “revenue from the state's individual income tax plunged by more than $700 million, a 25% drop”(“Failed Kansas Tax Experiment Holds Lessons for Washington”).
The debates on tax cuts are making their way to headlines of every radio station, newspaper, and television station in America. Today, tax cuts would only benefit the wealthy and wouldn’t really benefit the lower class. “The administration and it’s congressional alleys are proposing to sharply reduce taxation of the business income primarily benefiting
Sam Brownback is trying to create more jobs by using tax cuts in Kansas. In order to create more
Hederman Jr. executive vice president at The Buckeye Institute said "There are two main strategies that Ohio should employ to attract business and shake off the low ranking," Hederman said. "First, Ohio needs to get rid of business tax expenditures. These hurt businesses and job growth and discourage investment. Second, Ohio should focus on broadening the tax base and lowering tax rates. Implementing these two strategies, and others we have outlined in our Tax Reform Principles for Ohio, will improve our tax climate and will make Ohio an economic engine in the Midwest." (Hederman) Hederman and others have created this Tax Reform Principles for Ohio to try and better the Buckeye state, yet it's barely getting any attention. To instill change it's important to inform the public about the issue and what to
The tax cuts from 2001 and 2003 reduced the top four marginal income tax rates. The 2001 tax cuts did accomplish their intended goals, Republicans and Democrats tend to differ when it comes to tax cut benefits, I agree with the average democrat approach towards stimulating economic growth.
Government tax cuts and taxation on the middle class always seems to be the debate in every election year in the U.S. This debate is always related to the federal deficit and our national debt. The pro side of the argument is that if you cut taxes the revenue generated for the government will fall and it will then expand national debt. But in the counter arguments on cutting taxes can stimulate the economy, leading to an increase in government revenue with the redux in tax rates. According to Forbes article “Do Tax Cuts Increase Government Revenue?” “Using the data from 1913 through the end of 2011, the correlation between the maximum marginal income tax bracket and total Federal receipts is a negative 0.50. In simple terms, when taxes are cut, Federal revenue has a very strong tendency to rise! And when taxes are raised, government revenue has a strong tendency to fall.” ("Forbes Welcome", 2016). I believe the tax cuts proposed to the 95% of the country will have the intended a stimulus effect on economic consumer spending which leads to an increase in government revenues and eventually work its way down to a rise in the real GDP. The tax cut policy should generate revenue and show positive results in Home Depot’s financial gains. I believe the lowering of the tax rates will increase disposable income, and boost consumer spending, directly again home depot and the economic growth and it should succeed in its intended goal of creating a higher standard of living.
Donald Trump’s plan focal point is on cutting taxes and how that will result in many benefits towards the economy. “The president-elect has said he can get the economy to grow nearly
This may sound like a tax plan that will relieve the financial burden on lower-income taxpayers, directly benefiting the poor, but in actuality, cutting taxes for all in a regressive manner gives substantially more money to the wealthiest taxpayers and a very small amount to lower income taxpayers. According to his plan, a typical American family of four will be able to keep at least $1, 600 more of
So as a result, from this tax plan house hold with income $30,000-$50,000 will save $638 on their income tax, house hold with income $50,000-$75,000 will save $1.035 on their income tax, household with income $75,000-$100,000 will save $1,439 on their income tax, household with income $100,000-$200,000 will save $2,356 on their income tax, household with $200,000-$500,000 will save $5,090 on their income tax and household with more than $500,000 will save $29,901 on their income tax. From these calculation results we can clearly say household with better income sources will get most benefit from this tax plan instead of saving money for low income middle-class families. According to this tax plans, the middle-class families not only getting less tax cuts but also losing government incentives. That’s why Cohen states that many households would pay less in taxes, but some would pay more which including about 13 million middle-class families, according to estimates by
Studies such as these provide strong evidence that lower corporate taxes do lead to long term economic growth and by having high rates we retard the nation growth potential.