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Wealthy Americans Blindside GOP Congress With News None Of Them Wanted To Hear

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In an interesting case of irony, some of the rich, who would benefit the most from the Republican tax plan came out against it. The Washington Post reported that over 400 American millionaires and billionaires, including doctors, entrepreneurs, and leaders are sending a letter to Congress, asking them to raise their taxes not lower them.

Former American Airlines chief Bob Crandall told The Washington Post, “I think a tax cut is absurd. Republicans are saying we can’t afford to spend money, but we can afford to give rich people a huge tax break. It makes no sense.”

Crandall is right. The goal behind the Republicans’ tax bill is to provoke economic growth through investments–think an increase in jobs from new business ventures. To accomplish this, the bill aims to lower taxes for the rich. The bill presented by the Senate lowers the top tax rate from 39.6 percent to 38.5 percent.

There’s a flaw with this Republican reasoning. Companies are raking in enormous profits and have no incentive to spend their money. Crandall echoes this sentiment, “I have a big income. If my income gets bigger, I‘m not going to invest it. I’ll just save more.”

The problem with this approach is it assumes companies will turn around and reinvest that money, but there’s no guarantee of that happening.

Another way the tax plan doesn’t make economic sense is by repealing the estate tax. According to the letter written by Responsible Wealth, “Repealing the estate tax alone would lose an estimated $269 billion over 10 years—more than we would spend on the Food and Drug Administration, Centers for Disease Control, and Environmental Protection agency combined.”

This biggest issued raised with the Republicans’ tax bill is the cost: $1.5 trillion. This is on top of the staggering debt we have now. And if that isn’t the cherry on top of the debt sundae generations after ours will continue to chew, the most infuriating part is the Republicans don’t have proof this will improve the economy. Sure, it will benefit businesses and the rich. But what incentive do they have to spend more of their money? The letter by Responsible Wealth calls bullshit on this tax proposal. Considering those in this group stand to benefit the most it tells you how terrible this tax bill really is.


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