Opinion It’s Time For Republicans In Congress To Dump ‘Trickle-Down’ Economics

08:38  15 november  2017
08:38  15 november  2017 Source:   The Daily Caller

House begins revising Republican tax bill to quell dissent

  House begins revising Republican tax bill to quell dissent <p>Facing pockets of discontent in their own Republican ranks, tax negotiators in the U.S. House of Representatives will seek this week to brook differences over their far-reaching tax bill and stick to a self-imposed deadline of passage this month.</p>The House tax-writing committee begins revising the bill on Monday with tweaks and some more substantial changes expected to a number of individual and corporate tax proposals.

Now is the time for Republicans in Congress to dump trickle down tax cuts and increase voters' incomes in 2018. As last week’ s election in Virginia demonstrated, voters aren’t buying “ trickle - down .”

Far from trickling down , income and wealth are instead being sucked upwards at an alarming rate. Let’ s ditch the economy of the 1% and replace it with a human economy There’ s never been a better time to be alive.

Ben Stein teachers in Ferris Buellers Day Off YouTube sceenshot/Directors Chair © Provided by The Daily Caller, Inc. Ben Stein teachers in Ferris Buellers Day Off YouTube sceenshot/Directors Chair

Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

As the House of Representatives and the Senate consider a unified tax reform bill, the most important question remains: Do reforms help the middle class? Or are reforms motivated by the “trickle-down” theory — tax cuts for the rich will free up money that will create jobs down the line?

As last week’s election in Virginia demonstrated, voters aren’t buying “trickle-down.” Voters want more money in their wallets now.  How tax reform would treat university tuition issues is an excellent example of helping and hurting the middle class. Read on to learn more.

Tax reform is never easy, but GOP majorities hang in the balance

  Tax reform is never easy, but GOP majorities hang in the balance "If President Trump signs this bill into law by Christmas, not only will Republicans keep their majorities in both the House and Senate, but the United States will enter a new age of prosperity to the benefit of every American. However, if this tax cut bill is allowed to fail, the future for the GOP will be in peril."Ideally, the bill will easily get through the House Ways and Means Committee and be passed by the full House before Thanksgiving. However, conferencing in the Senate may prove more difficult, given our smaller majority.

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Consider this passage from a September New York Times report headlined, “In Battle Over Tax Cuts, It ’ s Republicans vs. Economists .” But as Thursday’s news conference indicated, the theory underpinning that belief is mostly a matter of faith, rather than economics .

The bad news first: The House bill would treat university tuition waivers as taxable income.  Tuition waivers typically are part of a university’s benefits plan. Once employees qualify, they are eligible for free tuition. Sometimes this benefit can extend to spouses and/or children.

My cousin Jeanie worked as a secretary at the University of Pittsburgh for many years. Her job choice was guided in large part by the free tuition for her children (one became a nurse, another a computer programmer). Her husband was a blue-collar phone company worker.

Thanks to the University of Pittsburgh’s offer of free tuition, Jeanie’s children achieved upward mobility.

There are thousands — perhaps hundreds of thousands — of Jeanies in academia who do modest work behind the scenes and use their employers’ benefits to improve their children’s chances for the future. Isn’t a pathway to upward mobility part of the Republican ideal?

Trump Tells Democrats He'll 'Get Killed' in GOP Tax Bill

  Trump Tells Democrats He'll 'Get Killed' in GOP Tax Bill A meeting that was geared toward earning the support of Democrats on tax reform turned into a heated discussion between Democrats and White House officials.WASHINGTON — President Donald Trump called 12 Senate Democrats Tuesday, hoping to sway them in favor of the Republican tax cut bill, and told them he would personally "get killed" financially by the GOP bill. He said he would only benefit if it repealed the estate tax, according to multiple people who were present.

But it was important not to admit as much, because that would be " trickle - down economics ." This seemed a cynical concession [italics mine] for Stockman to make in private conversation while the Reagan Administration was still selling the supply-side doctrine to Congress .

But it ’ s still a heavily Republican Legislature that voted Tuesday to rebuke trickle - down economics , with bipartisan supermajorities in both chambers backing the override of Brownback’s veto. Make a donation. One- Time Gift Monthly Gift.

Further, it wasn’t a government program that was responsible for their benefits. The benefits were earned through their work. Isn’t that part of the Republican ideal, too?

Taxing tuition waivers puts a burden on middle- and working-class families who either seek self-improvement (something Republicans are supposed to like too, right?) or upward mobility for their children.

Senators who are working on tax reform must to take a hard look at how this new tax could stop thousands of would-be university students from achieving the American dream.

There’s also good news: The House bill corrects a terrible injustice in higher education which allows private colleges and universities to amass huge endowments while charging students high tuition.

Note how school administrators can avoid using the endowment to keep the cost of tuition down. Instead, the endowments earn interest and returns-on-investment (or not, in the case of Harvard, but that’s another story).

The Case for a Big GOP Tax Cut Is Falling Apart

  The Case for a Big GOP Tax Cut Is Falling Apart The Republican Party has long billed itself as being for family values, for the dignity of work, for lower taxes, and (at least, as the minority party) for balanced budgets. The House GOP tax bill cuts against all of these positions. It would raise taxes on about one-third of the middle class by 2027. By eliminating the estate tax, it would benefit heirs of large estates, even if they don’t work a day in their life. Meanwhile, by eliminating some tax breaks often claimed by higher earners, the plan would raise taxes on many upper-middle class households. As a result, the bill would ironically privilege the “idle rich” over the “working rich.

When President Obama on Tuesday declared that decades of Republican trickle - down economics "never worked The Standard & Poor' s 500 spiraled down at annual rate of 5.6% during Bush' s time in the Oval Office, a disaster even worse than Richard Nixon' s abysmal 4.0% yearly decline.

Time magazine’s Justin Fox went back and reviewed what Republicans had said in the past about these (and other) cuts. It ’ s voodoo economics at its finest. A Wealthy Capitalist on Why Money Doesn’t Trickle Down .

The House bill would levy a 1.4 percent tax on the investment income of private university endowments which exceeds $250,000 per student. (Here’s a list of private bastions that could get caught in the $250,000 net.)

The list consists of the usual suspects.  Nearly all the Ivies are on the list:  Harvard, Yale, Princeton, Dartmouth, Columbia, Brown and Penn (but not Cornell), as well as their cousins: the University of Chicago, Duke, Stanford, Northwestern, Vanderbilt Notre Dame and the like. Wealthy small liberal arts institutions including Amherst, Wellesley and Middlebury make up the rest.

Credit must go to Republican Senator Chuck Grassley who, for years, has been slamming obese higher education endowments with stingy student payouts. Nearly 10 years ago, Grassley and then-Democratic Senator Max Baucus co-signed a letter to 136 colleges requesting details on their endowment funds relative to student aid.

The tax on college endowments would be a wake-up call to institutions which hold their large endowments tightly while hiking up the cost of tuition, room and board for students year after year.  Education is supposed to be their mission, not endowment growth.

If, as hoped, the tax spurs the fat cats of higher education to increase student aid significantly, it’s a boon to the middle class. Smart middle-class high school students have been opting for top state universities instead of an elite private institution. Neither their families nor the student (even with student loans) can afford the high cost of an elite private institution.  The tax could pry open those endowments — and, by doing so, encourage upward mobility.

Lastly, Capitol Hill Republicans must focus on the impact of tax reform on middle- and working-class families. Some Beltway groups may push for certain provisions, but they can’t guarantee important votes in next year’s Congressional races.

It’s time for Republicans in Congress to dump “trickle-down” tax cuts and increase voters’ incomes in 2018. That’s the way for Republicans to win next November.

Everybody Hates the Trump Tax Plan .
Ordinary families would be big losers, and even C.E.O.s aren’t showing much love.Looking at the reactions to Republican tax plans, I found myself remembering what people used to say about former Senator Phil Gramm, whose presidential ambitions never went anywhere but who did help cause the 2008 financial crisis: “Even his friends don’t like him.

Source: http://us.pressfrom.com/news/opinion/-99940-it-s-time-for-republicans-in-congress-to-dump-trickle-down-economics/

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