Democrats Divided On A Full Repeal Of The Republican’s Tax Cuts
Last December, Republicans passed historic tax reform that lowered all of the tax brackets including the Corporate tax rate down to 20 percent. The tax cuts have been very beneficial for the economy by allowing for the retainment of capital for businesses so that they can further invest in a variety of different ways (jobs, stocks, etc.). Ever since the tax cuts were proposed, Democrats had been opposed to them, saying they were the “end of the world” and “Armageddon.” Recently, Democrats have been debating as to whether or not they will actually repeal the tax cuts should they take control of Congress after the midterm elections later this year. Why are Democrats suddenly considering keeping portions of the tax cuts?
When the Republican tax cuts were first passed, they were extremely unpopular. Recently, the tax cuts have been gaining in popularity due to the volume of people who both, directly and indirectly, benefit from them. Many corporations including AT&T gave 2000 dollar bonuses after the tax cuts were passed. Also, many hard-working Americans are seeing a significant increase in their salaries. Some businesses even raised their hourly minimum wage to 15 dollars per hour. When businesses have extra capital on hand they can invest back into their businesses including investments into research and development, and potentially even raises for employees. This reduces the opportunity cost put on by government intervention, and allows for true economic expansion.
Democrats are currently fighting hard to win back seats from Republicans in the House and Senate. They are focusing on reaching voters they lost in the last election cycle. The Democrats know if they continue to fight against something popular such as the tax reform law, they will not gain much ground in the midterms. Last week, Bernie Sanders was asked if he would support fully repealing the tax cuts and he said, “No” three separate times. Bernie Sanders was the most far left candidate in the 2016 Presidential Election. He is famous for advocating for massive tax increases to fund government subsidized healthcare and college. If Bernie Sanders is not going to support a full repeal it's doubtful Democrats will pursue a full repeal. Senator Sanders also said, “I think what we have got to do is sit down and take a look at what kind of tax benefits would work best for small business, for working families, and the middle class.”
Now that the Tax cuts are in full swing, millions of Americans have been getting their money back and seeing increases in income. Because of this, the tax cuts have been gaining in popularity. Democrats are seeing this and are afraid they will fall further behind in Congressional seats if they advocate a full repeal of the tax cuts. The Democrats are going advocate for the repeal of parts of the tax cuts because they need money to fund the expansion of entitlement programs. Also, they may advocate keeping some parts of the tax cuts that are popular with the public in order to gain political capital.
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