For a while now, Democrats running for president have been asked how they are going to pay for new socialist programs aimed at redistributing the wealth in this country.
One by one the candidates have admitted that they will have to raise taxes or cancel Trump’s tax cuts to pay for them. Some have called for both, including the latest candidate to make that admission, Julian Castro. Castro made the announcement when he was talking to the NAACP. I wonder if the NAACP is aware that revoking those tax cuts will hit Blacks harder than any other group.
One of the main reasons that the unemployment rate for Blacks are way down and their incomes are way up is exactly because of those cuts, which encouraged manufacturing in this country.
Without those cuts, expanding operations are out of the question and indeed will lead to layoffs. And what of all the companies that gave employees raises, better benefits and bonuses? They made that decision based on the tax cuts. How do they resolve this if those taxes are reimposed?
Democrat presidential hopeful Julián Castro spoke at the NAACP annual convention in Detroit this week and claimed, “we’re going to have to raise taxes” and “repeal and replace” the GOP tax cuts.
“How can the nation pay its bills without raising taxes,” the moderator asked Castro.
“Well, I think that part of the answer is that we’re going to have to raise taxes,” Castro responded. “We’re going to begin by repealing and replacing the Trump tax cuts.
According to Americans for Tax Reform, repealing the GOP tax cuts would financially affect many Americans.
Americans for Tax Reform reported: “A family of four earning the median income of $73,000 would see a $2,000 tax increase” and “a single parent (with one child) making $41,000 would see a $1,300 tax increase.”
Should the GOP tax cuts be repealed, Americans for Tax Reform also reported:
Millions of low and middle-income households would be stuck paying the Obamacare individual mandate tax.
Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.
The USA would have the highest corporate income tax rate in the developed world.
Taxes would rise in every state and every congressional district.
The Death Tax would ensnare more families and businesses.
The AMT would snap back to hit millions of households.
Millions of households would see their child tax credit cut in half.
Millions of households would see their standard deduction cut in half, adding to their tax complexity as they are forced to itemize their deductions and deal with the shoebox full of receipts on top of the refrigerator.