[/dc]T[/dc]he Republican congressional majorities are on the verge of passing a massive tax cut bill that is better labelled a tax scam. While 95 percent of taxpayers may see some short-term reduction, their taxes will go up again in just a few years, while the tax rate on corporations is cut nearly in half, to 21 percent—and the new rate will be permanent. So while the average taxpayer will get a temporary reduction so small as to be unnoticeable, corporations will get the bulk of the gains—permanently.
Here are the Tax Policy Center’s projections, as reported in the Washington Post
This transparent bias is based on the myth that corporations will create jobs with the money saved on their taxes, but this has been repeatedly disproved, in both the Reagan and George W. Bush tax cuts. The only way to guarantee that jobs will be created would be to require it as a condition of getting the tax cut, and Republicans are not interested in doing that. They just want to give money away to their principal campaign donors.
The tax cuts will add about $1.5 trillion to the budget deficit over the next ten years. Of course, they say there will be so much economic stimulus from the tax cuts that increased tax revenues will erase that. But again, the Reagan and Bush tax cuts had no such effect: they just added to the deficit. All this from Republicans who complained bitterly about deficit spending under Obama. The fact is, the last two Democratic presidents, Clinton and Obama, actually reduced deficits, and Clinton even had a balanced budget. Republicans have only increased deficits.
Republican tax cuts are not for you and me, they are for the big corporations.