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

08:38  15 november  2017
08:38  15 november  2017 Source:   dailycaller.com

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 .”

The time is now right for Democrats to join forces with rational Republicans to finally end our nation’ s long fascination with trickle - down economics . After the election of Ronald Reagan in 1980, the Reagan Administration and a majority in our Congress decided to try out a form of

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

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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

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Every time Republicans propose tax changes that might in some way benefit the wealthy, the trumped-up myth of “ trickle - down economics ” – first In 1986, the Reagan Congress passed sweeping tax reform, reducing to just two tax brackets and slicing the top rate from 50% to 28% by 1988.

Timeline: Trickle - Down Economics Explained (for Beginners). Submitted by Bud Meyers on February 18, 2015 - 8:46am. So sometimes it seems almost pointless and a waste of time to repeatedly point out all the ways that the Republican party have assaulted organized labor, the poor, the

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

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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.

But getting from here to there requires heavy lifting that this Republican Congress has yet to USA Today September 27, 2017. Tax cut fever: Republican trickle - down theory is lies. It will be hard for many to believe, but once upon a time , Republicans genuinely cared about the budget deficit.

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.

At a time when stagflation was suffocating the US economy , and Watergate had sullied the Republican But many old-school Republicans scoffed at Laffer’ s trickle - down theories. Shortly after taking office, Reagan and Congress macheted the US tax code, bringing the top marginal tax

The other option, popular among some Hill Republicans , is to evaluate the bill’s revenue impact using dynamic scoring—a budgetary gimmick that assumes that tax cuts will generate robust economic growth. “The key is whether it ’ s what they call ‘scored dynamically,'” Sen.

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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