Republicans Quietly Roll Back Promised Tax Cuts

Here comes the new boss, same as the old boss.  You who voted for the Republicans in the 2016 November election delivered a GOP-controlled House, Senate, and White House.  And now, you get to see how similar both parties really are to each other. Last Friday night, November 3rd, House Republicans quietly rolled back some of the promised tax cuts in the so-called tax reform bill currently being worked on, under the controlling management of Paul Ryan and his gang of deep-state controlled opposition.

SPONSOR

If you like this content, be sure you click here and support iState's ability to deliver to you news for the iStater, the state of one.

From Western Free Press

After touting their tax bill on Thursday, House Republicans quietly lessened the tax relief promised to middle class families through a revision issued Friday night.

In a plan that already wasn’t going to provide huge relief as promised—though some is better than none—Republicans, and Trump were looking for a legislative win. Alas, the week-kneed Republican leadership downgraded their tax-cut to the American families. Why you ask? Well, it was to free up more money so that Republicans can cave to more demands from liberal Republicans when it comes to Senate negotiations, since it is almost certain that most Democrats will oppose any kind of tax-cut. When it gets right down to it, most people in Washington don’t really want to let the American people keep more of their money.

The reduced tax-cut is expressly aimed at people squarely in the middle class. Under the GOP plan the lowest tax bracket would be 12%, and this would apply to the first $45,000 of taxable income for individuals—$90,000 for married couples filing jointly. The next bracket would be 25% for income over $45,000 for individuals—$90,000 for married couples. Nothing wrong with that proposal in theory. This is where the revision comes in.

The House’s top tax-writer, Rep. Kevin Brady (R-TX) released a revised version of the bill that would impose a new, lower-inflation “chained CPI” adjustment for tax brackets immediately. This was already set to take place in 2023. Chained CPI is shorthand for “Chained Consumer Price Index,” and is a way to index spending and taxes to the rate of inflation, or the rise in prices over time.

If the amount of money needed to move you into the next highest tax bracket doesn’t rise as fast as your income does, you could get bumped into the higher rate faster than you would have under the old CPI. In a way, the chained CPI is both a spending cut and a tax increase at the same time, with an added benefit for politicians that they don’t have to actually get caught voting for either.

The chained CPI raises government revenues theoretically by slowing the rates at which tax brackets and deductions rise. In the case of the tax brackets, this would increase taxes by making it more likely that a person would enter a higher tax bracket as their wages increase. In essence, it causes a persons income to “rise” on paper—for the purposes of taxation—without that actual increase in value on the street!

Read More

Facebook Comments
About Paul Gordon 1358 Articles

Paul Gordon is the publisher and editor of iState.TV. He has published and edited newspapers, poetry magazines and online weekly magazines.
He is the director of Social Cognito, an SEO/Web Marketing Company. You can reach Paul at pg@istate.tv

1 Trackback / Pingback

  1. iNews Digest - Monday, November 6th, 2017

Comments are closed.