When tax reform first became a major issue, the local newspaper mentioned something about middle class tax relief which a rather liberal associate dismissed. When asked if she considered herself middle class, she answered in the affirmative. When asked if she was against extra money in her paycheck, she answered in the negative. When asked why she cared how the tax bill would apply to others, she was silent before launching into the usual class warfare nonsense about the rich getting richer and the poor getting poorer. All this despite the fact that she- the non-rich- would see more money in her paycheck every two weeks.
It remains to be seen what the tax reform bill recently passed by Congress and signed into law by Trump will mean to taxpayers. But thus far, the news has been good. Bank of America, AT&T, Comcast and others have announced they will give $1,000 bonuses to over hundreds of thousands of employees. At least three banks are raising their minimum wage to $15 an hour without the state telling them to do so.
The detractors argue that the investor class will be the ones to benefit the greatest. They predict that a great wave of increased wages and domestic investment will result in stock buy-backs and increased dividend payments. It is, to them, Wall Street investors who will be the big winners in this tax bill. In fact and ironically, labor unions have been the biggest detractors of this tax bill. What riles them is the fact that without onerous collective bargaining contracts, non-unionized work forces will see a boost in wages and take home pay. It is ironic since labor unions are some of the biggest investors on Wall Street and they should be lauding the tax bill because it is good for their retirees.
Unfortunately for the liberals, all they are left with are the tried-and-true old boring class warfare slogans that my associate readily trotted out. Nancy Pelosi calls it the “most monumental brazen theft from the American middle class.” She states that 83% of the benefits go to the 1%. She is a brazen, monumental liar. Every factual analysis of the bill describes it as an across-the-board tax cut and that includes the 1% and the remaining 99%.
Only to a Democrat are the following facts bad for the middle class:
- a single filer earning $52,000 will see a 36% reduction in tax liability;
- a married, joint filer making $85,000 will see a 20% reduction in tax liability;
- a married, joint filer making $2 million will see a 3% reduction in tax liability;
- for every $1 lost to the Treasury, $1.90 will be made up by increased GDP.
Only in the mind of the Left is this “screwing the middle class.”
Bill Clinton’s campaign in 1992 famously stated it best: “It’s the economy, stupid.” If this tax bill performs as expected and overseas profits are repatriated, if businesses invest and pay their employees more and employees see more of the fruits of their labor, only this can been seen as a failure by the Democrats.
Instead, we have some on the Left predicting and likely hoping for the opposite. They are wishing for failure because that failure would lead to electoral wins. One in particular- Dean Obeidallah at Daily Beast- predicts that this tax reform package is akin to Obamacare. When it was passed in 2009, it, like this tax reform, passed without bipartisan support. But he fails to see the glaring difference between Obamacare and tax reform. The former forced you to do something lest you suffer at tax time. The other gives you something at tax time.
There is no doubt the liberal talking heads will be all over the Sunday talk shows predicting financial Armageddon and spreading their class warfare lies. As for me, I welcome any more money in my paycheck as I intend to trickle it down into the economy. Now if only my liberal associates would worry about themselves! Of course, they could always pay-it-forward by using their increased take home pay to help the less fortunate, but that wouldn’t be very liberal now, would it? To them, it seems only other people’s money will suffice.