The Republican tax plan: economic boost or economic bust?

Screen shot from MSNBC's YouTube video: GOP Tax Reform Plan: Breaking Down Its Biggest Goals

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Recently, the Republicans in congress have unveiled their long awaited tax plan. This has many people curious on just how it will effect them and their families. Everyone hears about the cuts to the corporate tax rates but what else is in it? Well, there is also increased deductions for children and tax credits for non children dependents. In addition, the tax code will be simplified and the tax structure will be revised for small businesses. That’s not all. There are many other changes in the tax code. So, the question is will such a change be good for the country as a whole?

There is all ready a constant drum beat about how this plan is just a giant break for rich people and will hurt poor people, but is that true? The government will be letting people have more of the money they make, which seems good. It will supposedly enable people to spend more, which will cause a raise in demand that will in turn cause companies to hire more workers. This shift in supply and demand should lead to the country’s economic growth. Along with these changes, wages should theoretically rise and people will be lifted out of poverty. If viewed this way, it can be argued that this tax change will actually be helping poor and middle class citizens, not just the wealthy.

On the other hand, we have had thirty plus years of this view since President Regan introduced it to the country. While it’s true that the economy boomed in the 80s, we also have to keep in mind that the stock market crashed in 1989. Plus, tax rates were much higher back then compared to now. So, it is questionable about just how much more we can cut. To see what this kind of plan will do, we can look to Kansas and the results of putting these types of large tax cuts into effect. It has hurt Kansas so much they had to raise taxes over Governor Brownback’s veto to try and off set the damage. Granted that was not on a national scale, but if this tax plan plays out in a similar way, is it even worth trying?

The issue

Will this new tax plan help or hurt the country? Will it spark the economic growth that Republicans are promising or will it be a failure? Is there really no more to cut? Will this plan blow a hole in the deficit or will it start an economic boom period that will cause the government to have a lot more money? We will see.

In support of implementing the Republican tax plan

Republicans feel that their tax plan will generate huge growth in the economy and will benefit everyone.

Donald Trump certainly feels that this is the right time for this tax plan.

Paul Ryan thinks this plan will help people reach the American Dream.

In opposition to implementing the Republican tax plan

Many on the other side  feel that this tax plan is just a big give away to the rich and will hurt the poor and middle classes.

Andrew Cuomo, governor of New York, feels this plan will bring an end to the middle class.

Senator Bernie Sanders points out how this tax plan will specifically benefit President Trump and his cabinet members.

What do you think about the current GOP tax plan?

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