The Failure of GOP Tax Cuts and the Reality of Tax Policy for Middle Class Families
It has been almost a year since the GOP tax cuts were implemented. But have these cuts truly benefited the average American family or are we still waiting for the ldquo;trickle downrdquo; effects? Let's explore the reality behind this policy and its impact on middle class families.
The Myth of Trickle Down Economics
One of the persistent myths surrounding the GOP tax cuts is the idea of ldquo;trickle downrdquo; economics. The idea is that giving tax breaks to the rich will, in turn, benefit the lower and middle classes through job creation and increased investment. However, as we have seen, this theory has never been proven to work and it is now clear why.
Many argue that the tax cuts were never intended to help the middle class. Instead, they were designed to benefit the already wealthy and large corporations. According to several experts, there is no evidence that these tax cuts have led to significant economic growth or job creation for the average American family.
The Objective of the Tax Cuts
The ldquo;trickle downrdquo; Big Lie was just an excuse to give more tax breaks to the rich and super-rich, diluting any potential benefits for the rest of the population. In reality, the Truman Carter-Johnson Act (TCJA) added $1.5 trillion to the national debt over the next decade. When we divide that by our population and then by 12 months, we get an idea of the yearly and monthly impact on the average American household. It is clear that if your household has not seen a notable income gain or tax reduction, then you have not benefited from this ldquo;bogusrdquo; tax plan.
The Reality of the Taxes
If you are not among the super rich or a large corporation, you already got all the tax breaks you are going to get, and they are set to sunset back to where you started. While some argue that the benefits will eventually trickle down, the reality is that the only thing to expect is a higher tax bill. The so-called ldquo;tax cutrdquo; was 100% financed, and the remaining taxpayers will be paying every penny of it back with interest.
Long-Term Impact
The idea that tax cuts would benefit the middle class and lower income families has been proven false over the last 35 years. What evidence do we have that it will succeed now? Interestingly, those who supported the tax cuts were warned that they would provide no benefit to the majority of Americans, and they were correct. For those who saw some initial benefits, it is clear that those benefits are only temporary and will be paid back through higher taxes in the future.
It is crucial for policymakers and citizens to understand the true impact of tax policy on the average American family. Rather than being an excuse for tax breaks for the wealthy, a broader focus on fair and sustainable tax policies that benefit all segments of society is necessary. The government and businesses should invest in infrastructure, education, and healthcare, which ultimately benefits everyone.
It is important to recognize the reality of these tax policies and not be duped into thinking that a few winners will make everyone better off. The middle class and lower income families deserve better, and policy should reflect that reality.