Senator Roger Wicker came out strongly in support of the Senate’s tax plan, issuing a press release on Thursday:
“Americans deserve to have a tax code that respects and rewards hard work. The current system, though, is failing middle-class families and stifling economic growth. For too many people, it is difficult to make ends meet, let alone protect a lifetime of savings. The tax cut plan proposed today stays true to our goal of giving Americans more take-home pay and unleashing job creators and innovators. If we can deliver on these tax cuts, I believe we are going to give a jolt to the economy, the likes of which we have not seen in more than a decade. So, I am eager to roll up my sleeves – working nights if necessary, working weekends if necessary – to get this bill to the President’s desk.”
The problem is the tax plan that is emerging from the Senate is nothing short of atrocious. It’s not tax reform and does very little to help American taxpayers.
From what we know so far, here are some of the highlights of the Senate bill:
It maintains all 7 individual tax brackets, with the top bracket at 38.5 percent and the bottom at 7 percent. So much for simplifying the tax code.
Like the House bill, the Senate’s version also slashes the corporate rate from 35 percent to 20 percent but it delays the cut until 2019. Markets have already reacted negatively to the news.
It keeps the inheritance tax, while the House bill eliminates it by 2025.
It ends state and local tax deductions so people can’t deduct their state income taxes or property taxes.
With these jewels, how can it be considered tax reform? Like the House bill, it seems the only real cut is for corporations, not for individuals.