What Is In The Works For The GOP Tax Reform Plan?
By: Jalen Nash
Tuesday marked the first, and likely not the last, setback Republicans have faced in their attempt to pass a new tax plan. While the plan was set to be unveiled on November 1, House Republicans were unable to come to an agreement on certain details and its release date has been postponed.
Tax reform, and promises about it, played a major role in our recent election cycle. Hard working Americans, expecting tax deductions and additional benefits, flocked to polls putting Republican candidates in office. Once put in position to create actual change, however, the party has proven unable to unite on any issue except Hilary Clinton.
Much like the Republican Health Care Bill proposal, critics of this bill have pointed out that it was created by a select number of Republican leaders, instead of through the entire party or with bipartisan consensus. Many, like Republican Rep. Mark Meadows object this process on fundamental grounds stating, “Anything that gets done in a cloak of secrecy is certainly not what an open and deliberative body should do".
Instead of reaching for bipartisan support, head Republicans have constructed these bills to pass along purely partisan lines. Not only do people within our government feel left out of this process, so do the American people. This is against the nature and purpose of our democratic process.
Nonetheless, today this Bill will be released and come to a vote. What our officials in Washington decide will affect millions of us now, and our future generations. It is important that we stay well informed on what is going with this Bill. While many details are unconfirmed until its official release day, some changes expected to be proposed in this bill include:
· No homeownership tax credit
· collapsing the seven income brackets into four
· Highest income tax rate remains at 39.6%
· reducing the corporate income tax rate
· Larger standard deductions
· Eliminating the estate tax.
· Fewer targeted tax incentives
· Net tax cut of $1.5 trillion over a decade
· Eliminating or reducing the home mortgage deduction
· Repealing most personal exemptions
· taking away personal deductions for individuals and dependents
· imposing a new excise tax on the endowments of private colleges
Proposals surrounding this plan send a clear message. The Republican party has shown that it prioritizes economic growth, in terms of big business and corporations over the economic growth of the American. Their party values rest in numbers and economic theory over real-life situations. While making tax cuts for the richest Americans may improve our overall economy, it will do nothing to help the middle-class Americans, today, struggling to manage work, bills and enjoy life. A reduced corporate tax will not help the college students working minimum wage. Removing deductions for dependents will do nothing to help the single mothers struggling to raise their families. Instead of only focusing on the numbers, Republicans should develop a tax plan that addresses the day to day needs of the Americans that voted them. That is the most important change we must make in our tax policy.