Idea of the Week: Tax Policy that helps the middle and lower classes.

As more comes out on the details of the Republican tax plan, the more it confirms that this is possibly one the largest regressive tax measures in recent history. This is a plan to help the rich and screw everyone else. Tax Credits for adoptions. Gone. Tax Credits for teacher supplies. Gone. Tax Deductions for interest on Student Loans. Gone. Deduction for medical expenses. Gone. Property damage deductions. Gone. Electric car tax credit. Gone. Family Tax Credit. Gone in five years. State and local deductions that primarily help blue states. Gone.

What do the wealthy get? They get to see the Estate Tax Go Away. They get to see a new provision where C.E.O.'s can get tax breaks by labeling themselves as consultants. They get corporate tax breaks that are permanent. Hedge Fund Managers get to keep their carried interest provision. Even churches can keep their tax exempt status if they decide to branch out and openly endorse political positions and candidates.

As mentioned in a post yesterday, there are many other ways to reform tax policy that can move the country forward in a positive way. None of the ideas mentioned above that are in the Republican tax bill are it.

What progressives and Democrats need to do is come up with their own tax reform alternative plan that helps everyone, especially the middle and lower classes, and promote it across the country comparing it to the Republicans. It should not be difficult for the Democrats to come up with a plan that is better. The Republican one is so bad, it is a pretty low bar to overcome. As mentioned yesterday, the Progressive plan should include elements that resemble:

* Keeping all the credits the Republicans plan to reduce or take away in their plan and expand them.

* Expanding the Earned Income Tax Credit

* Expanding the Tax Credit for charitable contributions.

* Paying for it by creating a new tax bracket of 45 % for families that make $2,500,00 or higher and instituting a national sales tax on purchases over $100,000.00

* Getting rid of the estate tax by trading that for a higher income bracket while the people are still alive.

* Maintaining Corporate tax rates for companies that are considered large (More than 250 employees). Small businesses can have theirs reduced and get access to tax credits in research and development, infrastructure upgrades with green energy, and hiring.

* Mandating that Religious organizations do not get to keep their tax-exempt status and make political  endorsements

It should be fairly obvious which plan the American People will subscribe to. All Democrats need to do is come up with a viable plan and make their case. With the present incarnation of the Republican Party, it should not be hard.


http://www.latimes.com/business/hiltzik/la-fi-hiltzik-cruelties-gop-20171103-story.html

https://www.washingtonpost.com/blogs/plum-line/wp/2017/11/01/dont-buy-the-latest-spin-the-gop-tax-plan-is-still-a-huge-giveaway-to-the-rich/?utm_term=.ede046ac4fe5

https://www.nytimes.com/2017/11/03/business/trump-carried-interest-tax-loophole.html?_r=1

http://thehill.com/policy/finance/358447-gop-tax-bill-would-allow-churches-to-endorse-political-candidates