3

The recent Republican tax reform bill has been criticized as being a "tax cut for the wealthy."

U.S. Senate Republicans unveiled a tax plan on Thursday that differed from the House of Representatives’ version on several key fronts, including how they treat the corporate tax rate, the tax deduction for state and local taxes, and the estate tax.

Do most republican tax reforms historically favor the wealthier demographics?

  • 8
    It's worth noting that Republicans and Democrats differ on the impact of lowering the corporate tax. Republicans feel that it lowers prices or raises wages (through growth). Democrats feel that it increases dividends, which mostly go to the wealthy. In reality, different businesses likely do all three of these things in different proportions. We won't know exactly what proportions unless the change is made. The CBO will make an "informed" guess. Those are often quite off. I'm not sure that this question is answerable with any certainty. – Brythan Nov 12 '17 at 0:05
  • 2
    I don't think we can provide any more of a detailed or conclusive answer here than all of the current analysis that's out there. – user1530 Nov 12 '17 at 0:33
  • 11
    It's also important to note that pretty much any reduction in income tax is going to favor the wealthy. After all, the poor don't pay income tax. because they don't have much income (and indeed, may get money through EIC and such). So for instance an across-the- board 10% reduction saves a middle-income person a few hundred bucks, but someone with income in the millions is going to save a few hundred thousand. – jamesqf Nov 12 '17 at 6:26
  • 2
    Ironically, Income tax was started by the first Republican President, Abraham Lincoln – Frank Cedeno Nov 13 '17 at 20:35
  • 1
    the income tax was made permanent by Woodrow Wilson, a Democrat, to finance WW1. Of course, WW1 ended, but the tax stayed... – tj1000 Nov 14 '17 at 4:59

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.