In the article, “A Tax Cut that Lifts the Economy? Opinions are Split”, written by Patricia Cohen,
she reports on the fact that the Republican administration wants to cut taxes
dramatically in hopes to revitalize the economy. Although this tax cut seems
like a benefit for the economy, promoting business and investment, this tax cut
could ultimately have negative effects on the lower and middle classes of the
United States. This tax reform that the Republican administration wants to put
into effect could just end up driving an even bigger gap between the wealthy 1%
of the United States, and the middle and lower classes. Economists are
skeptical of this tax deduction because they don’t see how this plan is going
to cause a spur of growth in the United States economy when, “Interest rates
are already at bargain-basement levels, plenty of potential investment capital
is sloshing around, and the official jobless rate is at lows not seen in many
years” (Cohen). Most importantly with the deduction of taxes being lowered this
will cause the United States to go even more into debt, and have to cut governmental
aid programs for the lower and middle classes because, “The cost of the tax
package will inevitably deepen the deficit and lead to spending cuts that are
likely to hit low- and middle-income workers” (Cohen). Also, another fact to
point out as to why this tax reform could be for the worse is the fact that, “New
low rates and breaks will not be sustainable over the long term if they do not
provide enough money to run the government” (Cohen). Even though the lowering
of tax rates could promote new business investment, and create more jobs, it
seems as though this tax reform would only benefit the wealthiest of the United
States, and the middle and lower classes would get the shorter end of the stick
with tax cuts to government aid programs. We need to find a way to where ALL
classes will benefit from a tax reform, not just big businesses that don’t care
about the everyday average American. “Business folks won’t describe it like
this, but I think the best way to describe what it means to be more competitive
is to describe it in terms of increasing the standard of living of the American
people” (Michael J/Cohen).
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