Merry Christmas Taxpayers
The Detroit News – Editorial
Rarely has allowing taxpayers to keep more of their own money brought out so much trauma and hysteria. Reforming the tax code to boost economic growth and make the country more competitive will trigger Armageddon, warned House Minority Leader Nancy Pelosi. Others have declared what happened Wednesday to be the end of America. …
Even the left-tilting Brookings Institute calculates that 80 percent of taxpayers will receive a reduction in their obligation, while just 8 percent will see their outlays rise, largely because they live in states with enormously high local and state taxes.
For a true picture of how much everyday Americans will benefit from the package that passed Congress and is now headed to Trump’s desk, turn to the Joint Committee on Taxation’s distributional analysis.
… Those making $40,000 to $50,000 annually will see a hefty 56 percent reduction in their tax bill. Earners in the $50,000 to $75,000 range will keep an additional 25 percent of their earnings; $75,000 to $100,000 earners will save 18 percent, while those up to $500,000 in income will average a 14 percent tax cut. The truly wealthy, those making between $500,000 and $1 million and those making more than $1 million, will see cuts of 11.6 percent and 6.4 percent respectively. That seems to be a fair distribution of the tax breaks, and defies Democratic claims the rich will claim most of the benefits.
… It’s been stated as indisputable fact that the cuts will add $1.5 trillion to the deficit over 10 years. Not necessarily so, says Grover Norquist, the veteran Washington tax reformer. He says if annual economic growth hits 3.5 percent because of the stimulative effect of tax breaks, the revenue generated will more than cover the cost of the cuts. He believes growth, which averaged less than 2 percent since 2009, can be sustained at 4 percent a year.
Understand that many of those who are trash-talking this bill have an incentive in denying it is a win for Republicans and Trump. But wait until February, look at your pay stub and decide for yourself whether you’ve come out a winner.
Read the full piece from the Detroit News Editorial Board here.