Republicans in Congress are using the “grow the economy” excuse for lowering the tax rate for the wealthy when actually they just want to help those who give generously to their campaign funds.
The International Monetary Fund has stated that lowering taxes for the very wealthy actually causes a decline in the Gross Domestic Product because the very wealthy will not necessarily purchase more cars, boats, homes, etc. The reverse is true for the lower income classes.
George W. Bush lowered the tax rate for the very wealthy back in 2001 to correct the recession, but unemployment increased to 6 percent. When Reagan was president, 1981 to 1989, the federal deficit tripled, from $997 billion to $2.85 trillion, after he lowered the tax rate on the rich.
The richest 1 percent pay an effective tax rate of only 25 percent, while someone making $75,000 is paying at a 20 percent rate. Now, Republicans and Trump want to lower the rate for the very wealthy and corporations, but they never mention closing the tax loopholes.
The tax code is so tangled with exceptions and credits that many of the wealthiest Americans and giant corporations pay zero in taxes. As per CNN, Exxon paid $78.6 billion last year in global taxes, but “not a cent went to the IRS for income taxes.”
Please contact your legislators in Washington to voice your opposition to this type of tax reform. Reform of this type is not fair to the working class and will lead to a larger federal deficit.
Isn’t it strange that you don’t hear them mention our growing deficit anymore?