Tax cut bill little help to middle class

OPINION:

Congress passed a $1.5 trillion tax-cut bill Tuesday, but you won’t be seeing too much of that cash. The bill cuts rates for corporations and gives new tax breaks to private businesses, but you … yeah, not so much.

While the bill brings the largest overhaul of the U.S. tax system in more than 30 years, America’s middle class will see less than a quarter of the savings under the legislation.

Middle-income households — those making $20,000 to $100,000, which makes up half of all taxpayers — will get $61 billion in tax cuts in 2019, according to an analysis released Monday by Congress’ Joint Committee on Taxation. That’s about 23 percent of the cuts.

And that equals what America’s richest households will get in cuts: Those earning more than $500,000 a year — the “one percent,” as they’re known — will also get $61 billion in cuts in 2019 under the bill.

“That includes income earned by pass-through businesses such as partnerships and S-corporations that pay taxes on individual returns,” The Wall Street Journal reported. “Much of the rest would go to businesses in the form of corporate tax cuts, according to the JCT analysis.”

So, bottom line: Not you.

Guess that’s why the tax-cut plan jammed through Congress just before lawmakers’ holiday break is so unpopular with Americans.

“The Republican tax plan pending in the U.S. Congress benefits the wealthy the most, 64 percent of American voters say, while 24 percent say the tax plan benefits the middle class and 5 percent say it benefits low-income people,” according to a Quinnipiac University national poll released last week.

“The plan will increase their taxes, 41 percent of voters say, while 20 percent say the plan will reduce their taxes and 32 percent say the plan will not have much impact on their taxes,” Quinnipiac reported.

But President Trump, at least, is pumped.

“Stocks and the economy have a long way to go after the Tax Cut Bill is totally understood and appreciated in scope and size. Immediate expensing will have a big impact. Biggest Tax Cuts and Reform EVER passed. Enjoy, and create many beautiful JOBS!” he tweeted Tuesday.

The House moved first by voting in the afternoon. Not a single Democrat joined the Republicans — who lost 12 of their own members in the 227-203 vote. The Senate is expected to follow, after the required 10 hours of debate, and Mr. Trump will likely sign the bill before he leaves the White House for warmer climes.

Republicans claimed the tax cuts for corporations — slashed from 35 percent to 21 percent — and small businesses will help boost the economy, helping spur job growth and thus helping everyone. But Democrats argued that the bill would add $1.5 trillion to the federal debt and amounts to nothing more than a giveaway to corporations and the wealthy.

“There are so many rip-offs in this bill that people are going to say this is some kind of new Gilded Age,” said Sen. Ron Wyden of Oregon, the top Democrat on the Senate tax committee.

House Speaker Paul D. Ryan, Wisconsin Republican, said on the House floor before the vote that the legislation will “help hardworking Americans who have been left behind for too long.”

“Today, we are giving the people their money back,” he said, adding that a typical family would get a $2,059 tax cut next year.

But most people aren’t in the “typical family.” The median income across America is $59,000, and, according to The New York Times’ tax-cut calculator, those families will see a $1,650 cut. For a few years, before the cuts expire.

Democrats vehemently opposed the legislation, with House Minority Leader Nancy Pelosi of California dubbing it “the worst bill to ever come to the floor of the House.”

We don’t say this often, but she’s right.

“An analysis by the nonpartisan Tax Policy Center found that 83 percent of households in the top 0.1 percent would receive a tax break in 2018 with an average benefit of $193,380. For the middle 20 percent of earners, the average tax cut would be $930. Over half the bill’s total benefits would go to the top 10 percent of earners,” The Associated Press reported.

As usual.

Republicans argued that the benefits will trickle down through the economy, which by many other measures is booming.

But in the end, you’ll likely just get trickled on. Again.

⦁ Joseph Curl has covered politics for 25 years, including 12 years as White House correspondent at The Washington Times. He can be reached at josephcurl@gmail.com and on Twitter @josephcurl.