From The Chair:
“For where your treasure is, there your heart will be also”: Matthew 6:21
Unfortunately for residents of Ottawa County, the treasure lies with the 1% and major corporations that have chosen to off-shore wealth and jobs. We urge Congress to say no to the current proposed Tax Plan, and ask Congressman Huizenga to stand up for the middle class in Ottawa and vote no on this bill. The people of Ottawa should not be held hostage to the need for a Republican legislative win. This proposed plan is not good economic policy and ultimately will be detrimental social policy.
Economists agree this bill explodes deficits and has limited benefit in terms of growth. The non-partisan Tax Policy Center says even with growth, the debt grows 1.3 trillion over a decade. The Penn-Wharton budget model which accounts for growth says the deficit increases between 1.4-1.6 trillion and Oliver Hart economist at Harvard University says “Almost everyone is extremely doubtful this is going to come out well. This is wishful thinking.”
Even those who are cautiously optimistic raise concerns. Economist Darrell Duffie said he agreed the bill would increase GDP but raised questions as to whether it is fair distributionally. The National Federation of Independent Businesses is against the bill because the pass through provision does not help most small businesses. One must ask: who benefits?
Who benefits: corporate tax rates are reduced, making us appear to be more competitive globally. But we must ask directly – which corporations actually pay the 35% corporate rate? All of us understand that major corporations do not pay an effective rate close to 35%. While we are all in favor of simplifying the tax code and taxing our corporations in a fair manner, we do not believe this bill is the answer. There are far too many carve-outs for special interests and donors. When the majority of Americans making between $50-75,000.00 a year will see a tax increase, it is difficult to understand how the GOP can call this a middle class tax cut.
Our first trillion-dollar deficit occurred during the Reagan administration. It is time to stop listening to what the GOP says and start looking at what it does: cut programs that benefit the poor and increase deficits to benefit wealthy donors. When the so-called tax cuts for individuals are retired but the corporate tax cuts remain, we will truly see where the GOP treasure lies.
Kim Nagy
Chair, Ottawa County Democratic party