Mar 08, 2017
Sen. Flake on Tax Reform: “We ought to make sure that the middle class isn’t in the losing column”
Post by Freedom Partners
President Trump promised Americans pro-growth tax reform, and with it much-needed lower rates for both businesses and the middle class. But, many could be in for more than they bargained for.
The tax plan currently being proposed by House republicans, known as “border adjustment,” would impose an unprecedented middle-class tax on consumer goods, including clothing, electronics, cars and gasoline to compensate for lower rates.
According to The Fiscal Times, “Ryan’s plan would also, overnight, create new categories of corporate winners and losers and invariably drive up prices for U.S. consumers.” That’s why lawmakers from both sides of the aisle have balked at the proposal for the new source of federal revenue – or opposed it altogether.
“We ought to make sure that the middle class isn’t in the losing column,” Sen. Flake (R-AZ) said regarding a border adjustment tax.
Sen. Chris Coons (D-DE) recently told Bloomberg TV that “When you add a new tax … there’s going to be a lot of fighting about exactly which taxes go up, and which go down…. My gut instinct is to be against it.”
This is because the idea of shifting the burden of tax reform to hardworking Americans is not only bad policy, but even worse politics.
“The House hasn’t shown yet how its plan actually adds up, and lawmakers are having trouble building political consensus around the border-adjustment proposal, one of the biggest changes to produce revenue and offset the rate cuts,” The Washington Post reports.
Tax reform is a must, but there is a better way to do it without forcing middle-class consumers to pay $1.2 trillion in the form of higher costs. Americans for Prosperity identified trillions of dollars in potential spending cuts, tax loopholes, and corporate welfare that should be considered as alternatives before any new tax hike on consumers.
Republican leaders backing border adjustment insist that shifting the burden of tax reform to hardworking Americans is the only way to lower rates for both businesses and the middle class.
“I don’t know any other way to do it,” Rep. Devin Nunes (R-CA) told CNBC.
This just isn’t true.