Could the Middle Class Finally Be Catching a Break?
(UnitedVoice.com) – Ronald Reagan once said that conservatism is rooted not in theory but in “common sense and common decency of ordinary men and women.” It’s a lesson that Trump and Republicans may be picking up on as campaign season the 2020 campaign season is upon us campaign promises are being made among candidates from both parties.
The contrast couldn’t be clearer — Democrats say they intend to raise taxes, even on the middle class, while Republicans say they intend to cut them.
In 2016, then-candidate Donald Trump promised to simplify and overhaul the tax system. In 2017, the Republican Congress and President Trump followed through on their promise.
In December 2017, Trump signed the Tax Cuts and Jobs Act. The legislation cut individual tax rates from 39.6% to 37%, doubled the standard deduction, and eliminated personal exemptions. Most of the legislation focused on helping corporations and businesses put more back into their bank accounts so that they could put people back to work.
According to the Wall Street Journal, the tax cut achieved its goal. The Congressional Budget Office (CBO) said in January 2017 that only 2 million jobs would be created by 2020. Instead, the economy has created 7 million jobs, unemployment is at an all-time low, and disposable income is up as well.
President Trump Promises Tax Cuts for the Middle Class — But There’s a Catch
At the World Economic Forum in Davos, Switzerland, Trump said he was working on a middle-class tax cut that he intends to release within three months — just in time for the 2020 campaign to really get going. However, there is a catch, “We’re talking a fairly substantial … middle-class tax cut that’ll be subject to taking back the House and obviously keeping the Senate and keeping the White House.”
Following Trump’s statement in Davos, House Minority Leader Kevin McCarthy (R-CA) confirmed that discussions are underway about a possible “tax cuts 2.0” bill.
What Trump and Republicans Learned From Other Countries
In other countries, successful conservative politicians ran on tax cuts that heavily favored the majority of voters, and won.
Last May, Australia’s conservative party won in a major surprise, largely because of their tax plan which significantly reduced tax rates for individuals.
In Britain, Prime Minister Boris Johnson won in a landslide, especially among the working-class by cutting payroll taxes to help their lowest-paid workers.
In Austria, conservatives were able to pass an income tax cut for their working and lower-middle class.
Perhaps Trump and the Republicans are taking a cue from other countries… if they want to win, cut taxes for those in the middle that really need it.
By Don Purdum, Freelance Contributor
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