The Republicans Can’t Even Cut Taxes

The Republicans Can’t Even Cut Taxes

Dr. Richard Moss, candidate for Congress, criticizes the House Tax Bill

Jasper, IN: Dr. Richard Moss, candidate for Congress, wondered what Republicans were good for if not cutting taxes.

“It’s a bill only a RINO would love.  If Republicans can’t be counted on to make pro-growth, cross-the-board tax cuts what good are they?”

“They couldn’t repeal Obamacare after seven years of promises.  They can’t cut spending, balance the budget, or reduce the size of government.  They won’t reform entitlements.  They can’t secure our southern border.  They won’t rein in the out of control federal courts.  They don’t discuss term limits. They refuse to defund sanctuary cities, the EPA, or Planned Parenthood.  They don’t defend our culture.  They won’t end DACA, amnesty, or the ‘Diversity Visa.’  They continue importing Syrian Muslim “refugees.”  And they can’t even cut taxes without messing it up.  What are Republicans good for if not cutting taxes?”

“The Republicans want to cut the corporate tax rate from a punitive rate of 35%, one of the highest in the developed world, to 20%, a pro-growth cut that would make America more competitive and encourage corporations to repatriate their earnings and invest in the US.  This would create jobs and economic growth, a worthy goal.  But they are doing it on the backs of upper-middle and upper income Americans.  Some would receive a paltry tax cut hardly worth the political capital, while others would see an actual tax increase.  It is counterproductive.”

“The House Plan consolidates the current seven tax brackets into four: 12%, 25%, 35%, and 39.6%.  There is also a new ‘millionaire’s’ bracket of 45.6%, something even Barack Obama did not try to do.  There are minor tax cuts in the new rates.  The bill doubles the standard deduction from $12,000 to $24,000 for couples.  But it abolishes the personal exemption, which deducts $4,050 per person in the family including the filer.  If you have a household with four or more individuals you are losing more than gaining with doubling the standard deduction ($12,000).”

“This bill abolishes the deduction for state and local income taxes.  It has reduced the property tax deduction allowing only for a maximum $10,000 deduction.  It also limits the mortgage interest deduction to $500,000 worth of mortgage interest on homes purchased after the enactment date, but not on existing mortgages.  It eliminates deductions for charitable donations.  This will hurt those who deduct their state and local income and property taxes (if greater than $10,000) especially in conjunction with the loss of the mortgage interest deduction and charitable donations.  It will reduce the value of one’s home and deincentivize charitable giving.  Many individuals, not just in high tax states will pay more in taxes even after the other cuts.”

“It eliminates other important deductions for medical expenses, long term care, personal casualty losses, tax preparation fees, moving expenses, adoption expenses, alimony, interest on student debt, qualified tuition payments, and some contributions for educational savings accounts.”

The bottom line is that House Republicans are asking American taxpayers to give up important deductions for minimal tax cuts that do little or nothing to put money back in taxpayer’s pockets or drive economic growth – all for the sake of its vaunted corporate tax cut (which accounts for a mere 9% of tax revenue for the government).  If it were a massive, cross the board, Reaganesque tax cut, say a flat tax with a rate of 18%, for example, than such sacrifices might be acceptable.  But all it takes is a single Democrat administration to undo the minimalist tax cuts and raise rates again.  But in the meantime, taxpayers will have lost critical deductions, including state and local income taxes, and will then see large tax increases.  Many will see them anyway under the current plan.  Because the Republicans are uniformly incapable of making free market arguments, they have even resorted to playing class warfare by adding a new higher ‘millionaire’s’ bracket.”

“The plan doesn’t allow for meaningful cuts because Republicans have no plans to cut government and indeed the current plan is expected to balloon the debt by $1.5 trillion over ten years.  This bill will be very unpopular to many Republican voters.  Thus, it is a form of political suicide.  It also manages to increase the number of people not paying any federal income tax, which accentuates the moral hazard already built into the system whereby more and more of our fellow citizens vote in bigger government since they pay no price.”

“It is yet another example of how the Republican Congress cannot be trusted to do anything.  Not even something that should come naturally like cutting taxes.  They are scarcely different than the Democrats and even borrow their Marxist rhetoric.  President Ronald Reagan would have nothing to do with this plan.  Republicans should cut the corporate rate and leave the rest alone and then get back to repealing Obamacare, reigning in the federal courts, and securing our borders, all more important matters for the country.  The Republicans have failed us again.”

Dr. Richard Moss is a board certified head and neck cancer surgeon and was a candidate for Congress in 2016. He graduated from the Indiana University School of Medicine and has been in practice in Jasper and Washington, IN for over 20 years. He is married with four children.  

For more information visit RMoss4Congress.com. Contact us at hq@rmoss4congress.com. Find Moss For Congress on Facebook, Twitter, and Instagram.

This article was posted without opinion , bias or editing.