The Democrats’ sudden concern for the middle class
The Democrats are up in arms about the Republicans tax proposal supposedly because the subsidy for high state and local taxes may be reduced especially for the upper middle class and the rich.
For decades we have seen states, cities and the federal government continually raise taxes on everyone, especially the rich, and now politicians care and suddenly understand that lowering disposable income may hurt the economy? What a revelation!
We also hear that Democrats are suddenly concerned about deficit spending and debt. They didn’t care at all the last eight years as debt went up $10 Trillion but now they care if people and businesses are allowed to keep more of the money they earn. The CBO routinely, massively underestimates the cost of new government programs, and they routinely underestimate the impact that allowing more money to stay in the private sector does to make the economy grow. The projections always seem to favor higher taxes and higher spending.
The reason Democrats are fighting this tax reform is because they would lose control over how Americans spend, save, and invest their money. The fewer deductions there are and fewer special provisions there are reduces the number of votes politicians can buy with special favors. Each special deduction and credit buys loyalty from special interest groups. Those special interest groups in turn give politicians lots of donations to maintain the tax breaks. The more complicated the tax system the more bureaucrats that are needed to administer the tax system. Those bureaucrats tend to donate to Democrats in elections.
The simpler and flatter the tax system becomes the more potential for the economy to operate in a more efficient and effective manner. Most career politicians would rather maintain their power than help the economy as a whole.