Locking in further regressive tax cuts would just make the TCJA worse

Hunter Blair

Hunter Blair Budget Analyst, EPI

The House is set to vote this week on a second round of tax cuts that Republicans have dubbed “Tax Reform 2.0.” The first Republican tax cut, the Tax Cuts and Jobs Act (TCJA), was incredibly regressive with the worst component being a corporate rate cut that Republicans chose to make permanent. We said at the time that arguments that corporate rate cuts would trickle down to typical workers were bunk. And so far there is little evidence to suggest anything different.

Now House Republicans are hoping to solve a political problem—the unpopularity of their signature tax cut in 2017—by centering a second round of tax cuts on making the individual cuts in the TCJA permanent to achieve parity with the already-permanent corporate rate cuts. Republicans are marketing this as a tax cut for the middle class, but it’s nothing of the sort.

The second round of Republican tax cuts are still tilted towards the topShare of total federal tax change by income quintile, 2026

While the TCJA’s individual tax cuts may be less tilted towards rich households than the extremely regressive corporate tax cuts, these individual cuts are still awfully regressive in their own right. According to the Tax Policy Center, the bottom 60 percent, households making under $95,000, would get just 20.2 percent of the benefits. While the top 20 percent, households making over $168,600, would receive 63.0 percent of the benefits.

Locking in further regressive tax cuts won’t fix the TCJA, it will only exacerbate its deep flaws. Congress should reject this second round of Republican tax cuts for the rich.

***

Reposted from EPI

Posted In: Allied Approaches

Union Matters

He Gets the Bucks, We Get All the Deadly Bangs

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

National Rifle Association chief Wayne LaPierre has had better weeks. First came the horrific early August slaughters in California, Texas, and Ohio that left dozens dead, murders that elevated public pressure on the NRA’s hardline against even the mildest of moves against gun violence. Then came revelations that LaPierre — whose labors on behalf of the nonprofit NRA have made him a millionaire many times over — last year planned to have his gun lobby group bankroll a 10,000-square-foot luxury manse near Dallas for his personal use. In response, LaPierre had his flacks charge that the NRA’s former ad agency had done the scheming to buy the mansion. The ad agency called that assertion “patently false” and related that LaPierre had sought the agency’s involvement in the scheme, a request the agency rejected. The mansion scandal, notes the Washington Post, comes as the NRA is already “contending with the fallout from allegations of lavish spending by top executives.”

***

More ...

Corruption Coordinates

Corruption Coordinates