Senate Tax Plan Incenses Anti-Poverty Advocates

November 28, 2017. According to this article, the Congressional Budget Office report, released Sunday, finds that the Senate tax overhaul bill harms the poorest Americans even more than originally thought. That’s partly because of the provision to eliminate the federal insurance mandate, which the CBO said would lead to as many as 13 million Americans becoming uninsured and losing federal subsidies to help them buy insurance.

Ron Deutsch, with the liberal leaning think tank Fiscal Policy Institute, also believes that the poor won’t fare well under the federal tax overhaul plan. He said the U.S. needs a tax overhaul that is the exact opposite of the current proposals.

“What we really need is a bottom-up tax package, providing cuts to the people at the lowest end of the socioeconomic ladder,” Deutsch said. “Because they’re going to spend the money that they get.”

He said that would help stimulate the economy and potentially even create new jobs. Deutsch said wealthier people can afford to hang on to any savings from tax changes, so their gains would not necessarily benefit the entire economy.

 

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