Anyone who pays income taxes should appreciate tax reductions. However, in typical partisan fashion, Democrats claim that only greedy corporations and the wealthy will benefit from the tax reductions put forth by Republicans. Republicans defend their reduction proposals as sorely needed tax reform. Most Americans feel that government doesn’t have a revenue problem; government has a spending problem.
Democrats falsely claim that reducing corporate rates will hurt the economy. They fail to acknowledge that after paying taxes on income, corporations distribute the after-tax income as dividends to shareholders. They, in turn, pay taxes on those dividends. Double taxation is a fact of life under the tax code. Reducing tax rates benefits those who pay taxes.
The current plan is opposed by the left, which claims that it only benefits the rich. Democrats oppose limiting the state tax deduction to $10,000 (an amount only paid by the rich). The past has proven that lower tax rates boost the economy by leaving taxpayers more of their own money to spend.
Mark Cameron Sr., Fresno