Both the congressional Republicans and President Trump have delineated the Republican plan for the most comprehensive renovation of the tax-code. One of the big pieces to the renovation is the proposal of profound cuts to both individual and corporate tax rates. Republicans state that by doing so they will foster the environment for supercharging a slow-growing economy. Likewise, President Trump stated the following “We want tax reform that is pro-growth, pro-jobs, pro-worker, pro-family, and yes, tax reform that is pro-American” during a rally at Indiana State fair grounds. Yet, many of the details are still under construction however, both House and Senate Republican leaders have been meeting with both the Treasury secretary and a top White House economic adviser to ultimately create a plan that both can agree upon. Moreover, House Speaker Paul Ryan stated a similar statement, “Today we are taking the next step to liberate Americans from our broken tax code.” Ryan also made a similar statement regarding how the new improved tax code would ultimately be simple, fair, and pro-growth.
Ways in which this tax overhaul would work are the following: the proposal would ultimately cut the top individual income tax from 39.6% to 35%. Likewise, the plan also calls for a slash for the corporate tax rate from 35-20 percent. Also, the plan would end taxes on multinational corporation profits. Furthermore, for a period of five years the overhaul would “allow companies to write off the cost of investments immediately, rather than deducting those costs over time as they do now.” Yet overall Republicans have framed the overhaul in such a way to get the backing from the Middle class by stating that the plan would ultimately boost the income of the Middle class.
Yet, Democrats have made it clear that the Republican tax overhaul would ultimately assist the wealthy. Likewise, congressional experts have stated that investors of the companies and not the workers of those companies would benefit. Thus, many Democrats, such as Senator Schumer voiced the following statement, “Under this plan, the wealthiest Americans and wealthiest corporations make out like bandits, while middle-class Americans are left holding the bag” (NPR). Schumer also stated that many of the working American families could be seeing a hike to their taxes because of the Republicans calling for the lowest tax-rate. Democrats argue, the Republicans are preparing to use a procedural vote to avoid filibusters by Democratic senators. However, President
Trump has been making the effort to gain Democratic support for the tax-overhaul legislation.
However, it’s been reported that the tax overhaul would likely balloon the federal deficit. Likewise, there are many critics of the overhaul such as Maya MacGuineas, president of the Committee for a Responsible Federal Budget who states that “”This is a massive tax cut with an insufficient plan to pay for it.”