The Republicans’ passing of The Tax Cuts and Jobs Act has created a national and international media thunderstorm. Speaker of The House Paul Ryan deemed That the bill would “increase economic growth” (Wilkie, 2018) whilst Treasury Secretary Steve Mnuchin claimed: “It will pay down debt” (ibid). Congratulatory celebrations were certainly in order for the Political party… but why has This created such turmoil, backlash, and a chaotic frenzy?
Well, let us start by exploring how this has been one of the largest successes for the Grand Old Party ever since They won the majority in Congress back in 2010. Not to mention the fact That their Healthcare Bill intended to repeal Obamacare was attempted to be passed (unsuccessfully) twice earlier this year: back in March and then later in July. An embarrassing moment for Republicans as for the second attempt, seven Republicans voted against including “Senator John McCain and Susan Collins.” (Republicans Who voted against ObamaCare ‘straight repeal, 2018) This repeated failure in a Republican majority Senate was a particularly low blow for Republicans, hence why the passing of this Bill was the ultimate Hurrah for the Political party.
But what about the bill Itself? The actual Bill is monumentally historic given the tax reform It will bring forth, It has been described as “the Most significant tax overhaul since the Reagan administration” (CNN). The actual impact of The Bill -whether It be positive or negative – will be colossal. So why is This Bill going to have such a big impact? As the Patient Protection and Affordable Care Act has been attributed the acronym of Obamacare, I have decided to call this Bill the Republicans’ Reverse Robinhood. This is largely due to the fact That the people Who will benefit from this Bill are The affluent whilst The people Who will be left at a disadvantage are the lower economic classes. It is interesting to note how Trump promised to Drain The Swamp and now has a cabinet That is The definition of a Swamp.
The Bill includes: a major corporation tax break, lowering tax corporations from 35% to 21%. In fact “Corporate income brought back to the United States will be taxed between 8 and 15.5 percent, instead of the current 35 percent.” (“4 winners and 4 losers from the Republican tax bill”, 2018) Whilst These large corporations and frankly quite wealthy businesses are getting tax breaks, allowing Them to increase their riches, the lower classes Who rely on Medicare will see The budget for their health care be slashed by 4%. For Anyone unfamiliar with The health care system in America, Medicare is The system That has been in place since 1966; allowing private companies to provide their employees with health insurance. Obamacare was instituted in 2010 and is The current manner in Which lower economic class citizens can access cheap, often free health care.
The GOP has stated That This Bill will benefit the Middle-Class Americans, a long lost promise originally made my Trump through his campaign trails. Their train of thought is That through corporate tax cuts there will be more jobs and higher wages- essentially Trickle Down Economics. It is important to note That All of These claims are unsubstantiated. In fact, the reason why the bill received such backlash was due to the fact That it was understood by the majority of Democrats and a large part of the population as being extremely beneficial for the wealthy and having a significantly negative impact for the poorer and Lower Classes of the American population.
It is no coincidence That This Bill has been deemed as the millionaire and billionaire tax cut. These evidenced and substantiated claims are the reason as to why I have deemed This Healthcare Bill to be the Reverse Robinhood. Other losses with This bill could be home prices as mortgage interest can now solely be deducted up until 75,000. This has already had immediate consequences as It was reported That people were previously queuing up for hours “to prepay their property taxes” (Kilgore, 2018) before the end of the year in an attempt to get their tax returns of 2017. Individual earners will also be left at a disadvantage from This Bill. Although It must be noted That student loans, grad tuition, and teacher spending are not going to see an increase in their taxes as the deductions are being kept.
Other consequences of the bill include the increased deficit- throughout Both of Obama’s mandates Republicans complained about the large deficit. This bill has been predicted to increase the deficit up by over 1 trillion dollars, the highest figure in over a decade. Ultimately The Bill does not appear to be an intelligent business action for the United States. Not that President Trump is an expert business investor: studies have demonstrated That He would have been significantly wealthier if He had never invested Any of His money in the first place.