If the Republicans keep their majority in Congress, the middle-class may see nearly a 10% reduction in their taxes. The Chairman of the House Ways and Means Committee, Kevin Brady, issued a statement addressing the tax cuts which said, “we will continue to work with the White House and Treasury over the coming weeks to develop an additional 10 percent tax cut focused specifically on middle-class families and workers. And we intend to take swift action on this legislation at the start of the 116th Congress.”
With the crucial mid-term elections less than a week away, the lure of a 10% tax cut is very enticing and may help the Republicans keep their majority. A preliminary estimate for a 10% reduction in taxes aimed at the middle-class would cost the government $2 trillion over a ten year period. According to President Trump, he would like to make the tax cut deficit neutral which would greatly appeal to his conservative base.
Critics of the tax cut have already suggested “Republicans are scrambling because voters saw through their tax scam and understand that it was written for big corporations and the one percent, not for them,” according to Representative Richard Neal of Massachusetts, top Democrat on the Ways and Means Committee.
But if the tax cut could be made “net neutral,” it sounds like it could be a major win for Republicans and the American taxpayer despite the overtones of playing politics before an election. Orrin Hatch, chairman of the tax-writing Senate Finance Committee, seemed excited of the prospect of a middle-class tax cut by saying he “welcomes efforts to build on tax reform’s success by continuing to deliver benefits to middle-class Americans” and he would work across the aisle to achieve this goal.
The Congress failed to make the tax cut’s from last year permanent and President Trump, checking off promises made and promises kept, is committed to making a middle-class tax cut permanent.
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