The Republican tax proposals are gifts for corporations and the wealthy. Eighty percent of the benefits will go to those two categories.
The current tax rate for corporations is 35 percent. The majority actually pay about 18 percent after using deductions and loopholes. Corporations are making record profits and have record amounts of cash. Most are not giving meaningful raises to employees nor reinvesting into the company. Why would anyone think giving them more money will cause investments and raises?
Inheritance tax changes help only the wealthy and ultra-wealthy.
Republicans propose to eliminate deductions for medical expenses, interest on student loans, taxing college aid to graduate students, eliminating income tax and property tax deductions. The medical expense deduction is primarily used by people making less than $75,000. College loans and aid are primarily used by middle and lower income students. In Maine and other states with an income tax, the loss of the deduction may be devastating to many.
President Ronald Reagan’s tax cut was revenue neutral. Current proposals add at least $1.5 trillion to the debt. With interest, it would be $2.3 trillion. President George W. Bush’s tax cuts were followed by a recession.
Republicans are so desperate to show they can do something, they are rushing through these proposals. They have no interest in even attempting to show bipartisanship. They want to make the corporate changes permanent but will allow the personal changes to expire in 10 years.
These proposals are bad for the country, especially the lower- and middle-income taxpayers.
Stan Tetenman, Poland
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