Winners and losers in tax bill
Money does not grow on trees, even if some politicians want you to believe it does. For that reason, tax reform bills in Congress include some “losers.” For some people to get tax relief, someone else has to pay.
But the bottom line on both the reform bill approved last week by the House of Representatives and that up for a vote this week in the Senate is that the winners outnumber the losers vastly.
At first glance, some may get the math wrong in thinking about tax reform. With businesses, investors and middle-income Americans getting big breaks, does the money come from lower-income families?
No. Recall that both bills rely on a great deal of deficit spending — between $1.5 trillion and $1.7 trillion over the course of a decade. That is where most of the fiscal support originates.
Supporters of tax reform argue — rightly, to judge by the history of such action — that it will lead to economic growth more than adequate to offset the increased debt.
Under both bills, middle-income individuals and families get a break. Here in Minnesota, it has been estimated at an average of more than $3,090 a year for a family of four, according to the Tax Foundation. In addition, job creation is spurred by corporate tax relief.
Are the tax bills imperfect? Of course. What originating in Washington is flawless? On balance, however, the measures will be good for the vast majority of Americans. Senators should adopt their version.