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Daily Traders Edge

The Senate Tax Bill Favors the Middle Class, Not the Rich

December 06
16:16 2017

Republicans are close to passing the largest federal tax overhaul in decades. The corporate reforms are impressive and promise to lift all boats in coming years with a rising tide of growth. The bill has moved forward despite an unrelenting Democratic effort to smear it as an unfair giveaway to the rich.

The Democratic class warfare will continue even after President Trump signs the bill, and that will create two big problems. The first is that the Democrats will probably pursue a long-term campaign to repeal the pro-growth elements of the bill, as they did with the George W. Bush tax cuts. The second is that if Republicans attempt to cut spending in the coming months and years, the Democrats could make political headway by complaining that tax cuts for the rich led to benefit cuts for everyone else.

So Republicans need to counter biased claims about the tax bill’s distributional effects. In reality, middle-income households will receive the largest tax cuts, as a percentage of what they currently pay, under both the House and Senate bills. But that fact is not apparent in reports by the three groups calculating detailed statistical results: the liberal Tax Policy Center (TPC), the congressional Joint Committee on Taxation (JCT), and the conservative Tax Foundation.

Continue Reading at The National Review

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