The Republican effort to restructure the US tax system would squeeze the middle class and, through it, hamper the growth of the whole economy, holds William D. Cohan of Vanity Fair. Their bill cuts taxes for many of the county’s rich, hoping that economic growth would prevent the deficit from rising. However, trickle down hasn’t been shown to work. Shareholders would see more revenue but are unlikely to invest it in workers’ wages or development. Caps on tax deductions for homeowners will also see home prices fall. This would result in low consumer confidence, lower spending and, therefore, a stagnating economy.
The GOP’s tax reform plan would benefit small business owners and allow their projects to thrive, asserts Mary Schiavoni of The Washington Examiner. By lowering the tax rate, Americans would be encouraged to start their own companies. The ones who already have would have more ease in offering their employees better pay and bonuses. Much of the country would benefit from this in the shape of better services as well as money staying in communities, which can develop further. The doubling of the child tax rate supports families in raising children. The assertion that this tax bill goes against the middle class is wrong.