Repeal of Tax Cut Would Cost Americans $27K in Take-Home Pay
Democrats promise repeal and propose a tax "credit" that would put more people on the government dole.
The Heritage Foundation has released a new report finding that if last year’s Republican tax cut is repealed or allowed to expire, it would cost the average American nearly $27,000 in take-home pay over the subsequent decade. As Adam Michel, a co-author of the study, explained, “After 2025, most of the individual tax cuts revert to prior law. The tax cuts expire.”
Michel also noted the need “to solidify the current broad-based economic expansion, Congress must make the tax cuts permanent. A series of three new bills that make up ‘Tax Reform 2.0’ have passed the House.” He added, “The package would make much of last year’s tax reform permanent, introduce new simplifications for family saving, and provide a helping hand for new small businesses.”
Democrats who opposed the economy-spurring Tax Cuts and Jobs Act from the very beginning (recall that not a single Democrat voted for the legislation) have pledged to repeal the law should they regain control of the House. This includes current House Minority Leader Nancy Pelosi (D-CA), who has repeatedly derided the tax cuts as everything from “Armageddon” to “crumbs.”
Likely 2020 presidential candidate Sen. Kamala Harris (D-CA), seemingly sensing the problem of repealing the tax cuts, recently announced her own tax-credit plan for lower- and middle-income taxpayers. Harris’s plan would replace the current tax cut with a government wealth-redistribution scheme of more direct payouts to the poor. The Tax Foundation analysis of Harris’s tax credit proposal estimated that it would cost the government $2.7 trillion over 10 years and — surprise — negatively affect the economy.
But Democrats aren’t about growing the economy with tax policy; they’re about growing a dependent class of voters. No wonder they hate GOP tax cuts.