EDITORIAL: GOP tax plan bad for Florida, nation | Editorial
Not unless most of them -- especially many Floridians -- want coal in their stockings.
Two changes would be especially problematic for
One would end the deduction for uninsured losses from natural disasters. Losses from hurricanes Harvey, Irma and Maria would be allowed. After that, however, residents in hurricane-prone states could face ruin even if they have coverage, given the record of disputes between policyholders and carriers.
The second would eliminate the deduction for high out-of-pocket medical expenses.
In a broader sense, though, the proposal would further hollow out middle- and lower-income Floridians, as it would in every state.
Real tax reform would prioritize help for those Americans. Instead, the Republican plan helps them the least -- student loan deductions also would end -- and helps upper-income Americans the most.
About 17 percent of households earning between
Other changes to help the middle class would expire in five years. The congressional
Guaranteed, however, would be the phasing out of the estate tax in six years. That would save the richest 0.1 percent of Americans roughly
Contrary to what Trump and other
Also guaranteed would be a reduction in the top corporate tax rate from 35 percent to 20 percent, though the
Finally, the plan leaves intact the "carried interest" loophole, which allows private equity managers to tax what should be personal income at the lower capital gains rate.
At the core of this plan is the Republican dogma that cutting taxes for the wealthy benefits the middle-class by stimulating job creation. A
This supply-side theory is based on the myth that the Reagan tax cuts of 1981 led to the decade's boom. A 1989 analysis by economists
The key factor was lower interest rates. They peaked at more than 20 percent in mid-1980, the
Trump has embraced the House proposal, marking another betrayal of the working-class voters who backed him. His response to the opioid crisis decimating blue-collar areas has been weak. He favored a health care bill that would have hurt the working poor. He wanted to cut programs that help rural America.
Editorials are the opinion of the Sun Sentinel Editorial Board and written by one of its members or a designee. The Editorial Board consists of Editorial Page Editor
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