• An analysis by Congress’ Joint Committee on Taxation found that every income group would lose ground from the bill’s tax changes, although by a modest amount — approximately 1%.
• However, this analysis didn’t factor in subsidies for energy efficiency and clean energy, the continuation of expiring subsidies under the Affordable Care Act, and lower drug prices because of Medicare negotiations. Independent experts expect these benefits to cancel out, or reverse, any negative tax impacts.
• The only actual tax increases in the bill are levied directly on very large corporations and high-earning money managers. This means that any impact on ordinary Americans would come from secondary effects, which are difficult to measure.
Funny thing. Back in the 1980's, Canada had a Manufacturer's Sale Tax, something like 13%. Only manufacturers paid it. The government came along and changed it to a Goods and Service Tax at 7%. People got mad, a new tax! the government said "Yes, but we're eliminating the 13% MST. 13-7 = 6. Goods will decrease in price by 6%. And, of course, they didn't. They just went up 7%.
ReplyDeleteNo government has even introduced new taxes that actually reduce financial burden. Subsidies for green energy have been endless money pits wherever they'd been tried. Drug prices won't actually go down. People will just buy more to make up the difference.