It Started as a Tax Cut. Now It Could Change American Life.
- 6 years ago
It Started as a Tax Cut. Now It Could Change American Life.
The result is a behemoth piece of legislation that could widen American economic inequality while diminishing the power of local communities to marshal relief for vulnerable people — especially in high-tax states like California
and New York, which, not coincidentally, tend to vote Democratic.
With a potentially far-reaching dimension, elements in both the House
and Senate bills could constrain the ability of states and local governments to levy their own taxes, pressuring them to limit spending on health care, education, public transportation and social services.
By 2027, people making $40,000 to $50,000 would pay a combined $5.3 billion more in taxes, while the group earning $1 million
or more would get a $5.8 billion cut, according to the Joint Committee on Taxation and the Congressional Budget Office.
It is at every turn carefully engineered to deliver a kiss to the donor class.”
In a recent University of Chicago survey of 38 prominent economists across the ideological
spectrum, only one said the proposed tax cuts would yield substantial economic growth.
In high-tax states like California, New York, New Jersey
and Connecticut — where electorates have historically shown a willingness to finance ample safety-net programs — the measure could change the political calculus.
Health coverage would shrink under the Republican plan while multimillion-dollar estates would not have to pay a penny in taxes.
But as the bill has been rushed through Congress with scant debate, its far broader ramifications have come into focus, revealing a catchall legislative creation
that could reshape major areas of American life, from education to health care.
The result is a behemoth piece of legislation that could widen American economic inequality while diminishing the power of local communities to marshal relief for vulnerable people — especially in high-tax states like California
and New York, which, not coincidentally, tend to vote Democratic.
With a potentially far-reaching dimension, elements in both the House
and Senate bills could constrain the ability of states and local governments to levy their own taxes, pressuring them to limit spending on health care, education, public transportation and social services.
By 2027, people making $40,000 to $50,000 would pay a combined $5.3 billion more in taxes, while the group earning $1 million
or more would get a $5.8 billion cut, according to the Joint Committee on Taxation and the Congressional Budget Office.
It is at every turn carefully engineered to deliver a kiss to the donor class.”
In a recent University of Chicago survey of 38 prominent economists across the ideological
spectrum, only one said the proposed tax cuts would yield substantial economic growth.
In high-tax states like California, New York, New Jersey
and Connecticut — where electorates have historically shown a willingness to finance ample safety-net programs — the measure could change the political calculus.
Health coverage would shrink under the Republican plan while multimillion-dollar estates would not have to pay a penny in taxes.
But as the bill has been rushed through Congress with scant debate, its far broader ramifications have come into focus, revealing a catchall legislative creation
that could reshape major areas of American life, from education to health care.