House Republicans on Tuesday will propose a dramatic reshuffling of the tax code that would collapse the range of individual tax brackets into just two, with lower rates, and slash the top tax rate for corporations.
Under a budget plan that will be unveiled by Budget Committee Chairman Paul Ryan (R-Wis.), Republicans will propose replacing the current structure of six brackets for individuals with just two tax levels, with a 10 percent marginal tax rate for lower income earners and 25 percent for upper income earners.
That would be a reduction from a top marginal rate of 35 percent currently.
The plan would also lower the top corporate income tax rate to 25 percent and virtually eliminate taxes on corporate profits brought back from overseas….
This is class warfare. Cutting federal revenue long-term by reducing taxes on the rich and on corporations is guaranteed to increase the deficit and the debt. And while blithely pretending on the revenue side that the debt is not a problem, the Republicans also claim that the debt is so massive that it has given them no choice but to dramatically remake Medicare, the program that millions of middle-class and working-class Americans rely upon for health care in their older years.
The inconsistency is glaring: On the revenue side, the debt is ignored as the party pursues its goals of lower taxes on the rich and on corporations. On the spending side, the debt becomes a powerful cudgel with which to beat the middle class into accepting cuts to the basic safety net.
This is class warfare, raw and unmitigated.
– Jay Bookman