A friend looks at the new tax plan

via Jan Erb on Facebook

How many of you would fall for the pool sharks? Billiards, not swimming. They would let you win small bets, then suggest higher stakes so they have a chance of winning back their money. Then they proceed to systematically clean you out.

This is exactly what the Republican tax bill does for over 75% of the population. I have done the research, run a few of the tax calculators comparing existing versus new tax plan. I do see a lower income tax bill. Several problems with this small savings on taxes.

First, is the debt. I know most of you will think that doesn’t matter but much of the annual deficit is paying interest on the debt. If we didn’t have any debt, then your taxes could be significantly lowered. Israel, to whom we give millions, has no net debt. My personal share of the debt, derived by finding the estimated deficit increase and dividing that by the total number of individual taxes filed for 2016, is more than twice what I will receive in savings the first year.

To add insult to injury, according to the estimates for the future, I will be paying more taxes under the new plan in ten years. Some costs will be more immediate. By removing the mandate in the ACA (Affordable Care Act), the Republicans have destroyed the savings of the ACA. Almost everyone will see an increase in insurance cost in 2019 when this mandate will no longer exist. Some of those choosing to not buy insurance may benefit but their average cost will go up since most health care providers charge significantly more for services when you do not have insurance.

Just check your EOB from your insurance company and see what the original charge was versus the amount that qualifies under your insurance. Emotional maturity requires the ability to plan for the future. Supporting the Republicans and their tax plan is short-sighted unless you are a part of the top 5% and very greedy, caring more about amassing wealth far beyond what one can reasonably spend within several generations than you are about the well being of America and the American economy.

Let’s be blunt. Trickle Down does not work and the tax incentives given to business are more likely to have them investing in technology that reduces the need for as many workers. It is unfortunate that most people will not do the research and instead buy into the Republican propaganda – they will not even read posts like this one because it is too long, preferring to read tweets and listen to sound bites.

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