Senate Plan Could Increase Taxes on Some Middle-Class Workers
https://www.nytimes.com/2017/11/10/us/politics/senate-tax-bill.html
Mitch McConnell, the Senate Majority Leader, aforementioned that the middle class will not get a tax increase, but quickly revised his statement as false. According to McConnell, the Republican tax plan is aiming to adjust taxing depending on levels of income, hence regulating the amount of tax that should be paid for each taxpayer. They also outlined 2 main objectives: cutting taxes for middle and business classes, so the economic growth rises and wages could be increased. They would reduce taxation for every income level and corporate taxes from 35% to 20%.
It is definitely a good plan to reduce taxes in order to make people spend more and get paid more (wage increases). The concern is that if the government is reducing their income, how are they going to fill up their reserves? If the government gets on a higher amount of deficit, it will not bring about a positive impact. I agree that the Republican tax plan is magnificent, but I hope the congress comes out with a stable and effective plan to back up the loss of their income.
Congress will have a tough time getting together a budget plan to account for the new tax cuts. The middle class getting a tax increase will hurt consumption a little bit because most middle class families depend on the income they get to be able to afford and consume at the level they do.
ReplyDeleteIt is sad to see how political parties are so concerned with their beliefs but not so concerned about the effects these a have on the country. I feel that these decisions never consider the real consequences, but at the same time, I am hopeful that the FED will make the adjustments neccesary to fix the consequences.
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