The GOP recently unveiled their latest tax plan in a trio of bills that are a testament to the party's continued prioritization of the rich and corporations over everyday Americans. Their legislation is out of touch with the public's needs and poses grave economic and environmental risks.
If Congress enacted this GOP tax proposal, the richest fifth of Americans would pocket $60.8 billion in tax cuts next year, while the poorest fifth would receive a mere $1.4 billion.
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The plan also includes an increase in the standard deduction that would assist some middle-income taxpayers but would do little for those who need a break the most. The poorest fifth of Americans would receive an average tax cut of just $40 next year, while the wealthiest 1% would receive an average of $16,550.
Moreover, these bills would roll back parts of President Joe Biden’s Inflation Reduction Act and increase the deficit by expanding corporate tax breaks that were initially part of the Trump tax cuts, leaving a gaping hole in our national budget. This comes as a striking contradiction just weeks after the GOP threatened a catastrophic default on the federal debt, citing a supposed budget crisis. But budget concerns seem to disappear when the subject is tax cuts for corporations and the rich.
This plan is even more outrageous because the GOP wants to partially pay for their tax cuts by rolling back climate change provisions in Biden's Inflation Reduction Act. This move would essentially finance corporate tax breaks by repealing clean energy tax credits, inevitably leading to greater environmental damage.
Furthermore, the "offset" is simply a smokescreen since the actual costs of this plan are hidden by budget gimmicks, such as the temporary enactment of major tax cuts with the ultimate intention of making them permanent. If that happens, the Committee for a Responsible Federal Budget estimates they would result in over $1 trillion in revenue losses over the next 10 years. Far from the promise of widespread relief, this plan emphasizes benefits for the wealthy and does little for those most in need.
This push for immediate deductions is not based on economic necessity but corporate greed. It's worth noting that the corporations lobbying for this change, such as Northrop Grumman and Amazon, are among those that have paid only a fraction of the standard 21% corporate tax rate in recent years. Yet they are still keen to exploit any opportunity to reduce their tax liabilities.
The GOP's tax bills underscore the need to reassess our tax priorities. Any effective tax plan should aim to provide relief to the majority of Americans and support small businesses and startups. It should also align with our environmental goals rather than undermining them for short-term economic gains. The current GOP proposal fails on all these fronts, and it is incumbent upon us to push for a tax system that is equitable, progressive, and aligned with our long-term societal goals.
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