Since his campaign days, President Trump has declared he would reform taxes to benefit all Americans, especially the middle class.
According to Newsmax, his recent statements at a rally in Harrisburg, Pennsylvania claim that his tax plan would dramatically benefit the average American. According to Trump, the average working American could see $4,000 in additional earnings.
Trump’s tax plan has faced incredible push back from Democrats who claim the measure would only work to benefit the rich and does nothing for the poor or middle class. Senator Bob Casey (D-TN) made this claim shortly after Trump’s speech, “Congressional Republicans are not pursuing tax reform, just a massive tax giveaway to the super-rich at the expense of the middle class.”
According to US News and World Report, Representative Lloyd Doggett (D-TX) claims the tax plan is a way to make Trump himself rich at the expense of the poor, “What President Trump and his Republican cohorts say this plan is, it isn’t. Despite repeated claims of ‘no tax cuts for the rich,’ this plan does the opposite by raising the bottom rate and cutting the top rate, eliminating the estate tax, and expanding a loophole to line Trump’s pockets.”
Yet President Trump maintained in his speech on Wednesday that tax reform isn’t just a benefit for the rich, it’s a benefit for everyone, especially those states that have failed to recover since the great recession in 2008, “We can breathe new life into struggling industries and forgotten towns.”
What Democrats fail to realize is that even if the tax cuts are designed specifically for rich business owners, it would still benefit everyone else. If companies operating in the US see a cut in taxes, they have more profits to expand their operations, providing more jobs, or to give a small kickback to their employees via higher wages and bonuses.
Companies on the fence about leaving the US to go to more tax-friendly nations to increase profits would also be motivated to stay and those that left may come back for the greater tax benefits. This dramatically improves the amount of jobs and ensures that businesses continue employing Americans and provide cheaper products and services locally.
Mark Weinberger, chairman of the Business Roundtable Tax and Fiscal Policy Committee pointed this out in his own statement on Wednesday, “The unified framework provides the necessary elements to create jobs and growth: competitive tax rates for businesses, a more competitive international tax system that would not punish businesses for bringing foreign earnings to the United States and middle class tax relief.”
Trump also pointed out that this is something voters want specifically, “People want to see tax cuts, they want to see major reductions in their taxes, and they want to see tax reform – and that’s what we’re doing.”
Trump announced he may begin implementing tax cuts. Do you think he should?
Democrats are wrong to claim that benefiting the rich and businesses is at the expense of middle and lower class Americans. Business owners need employees to make money and they need to pay competitive wages to retain those employees. They can only provide those wages if their businesses make enough money to do so, and lower taxes does that.
It should also be a red flag that those politicians whose income is derived from taxes don’t want to see tax cuts happen.
The Left can criticize President Trump all they want, but if anyone understands how businesses and money work, it would be the billionaire businessman sitting in the White House.