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The Wise One – the story of the blind and the wise
If the GOP’s tax plan is really just a gift from heaven to the rich, what will it deliver to average Americans?
For Republicans, a big part of the answer is to reduce taxes for the rich. That’s good news, but it remains a hard sell with their base.
A new HuffPost/YouGov poll finds that nearly two-thirds of Republicans, 68 percent, think that they will have to pay more in taxes than they do today — which raises some important questions.
In short: How many Republican leaders think they’re going to have to pay more in taxes than someone in their household making $40,000 per year?
In short: How many Republicans believe they’re going to have to pay more in taxes than a typical family on Social Security, Medicare, and a half-million tax-free dollars from the government?
If they think the answer is more than a third of Americans, that’s a red flag.
These are real questions
What, exactly, did Republican leaders find so offensive about the tax plan?
Here’s the basic outline:
Cutting taxes for the wealthy, and in particular, eliminating certain deductions, such as the state and local tax deduction, will lead to a much larger tax bill for the middle class: the top 1 percent will pay an average of 27.5 percent more in taxes, whereas the middle quintile of households will pay 21.8 percent more than they do today.
Lowering rates on businesses will lead to higher profits for the wealthy, but the middle class will end up getting hit more heavily; as a result, the bottom 75 percent of taxpayers will pay a slightly smaller share of the tax bill (25.4 percent).
The bill will boost tax rates for the richest Americans by about $20,000. That’s more than 20 percent higher than they’d pay under current law. According to the Tax Policy Center, middle-income earners have paid lower personal income taxes in every year going back to 1981.
Tax cuts for businesses tend to lead to
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