Your Views: Ryan’s tax plan would hurt the middle class

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letter to the editor
Tuesday, September 12, 2017

There are valid justifications for reducing the corporate income tax rate, so long as it is accompanied by tax simplification, which ends many of the existing exceptions and tax loopholes available to businesses, especially to large international corporations. There is bipartisan support for this part of the proposed tax reform plan.

But Paul Ryan’s proposal, which would also reduce individual tax rates and flatten our progressive tax rate schedule, is neither fair nor reasonable. Attempting to create new jobs by lowering the tax rate on wealthy individuals is a very bad idea. It would increase differences that already exist between the average income of middle-class Americans and that of the privileged upper classes. Furthermore, promised economic growth could not make up for the shortfall of revenue caused by proposed tax cuts.

As part of a balanced tax reform package, the tax rates on high-income individuals should be increased to generate needed revenue. Reducing the taxes paid by ordinary working people would put more discretionary income in the pockets of people who usually spend it. This would increase the demand for goods and services, motivating businesses to expand and create new jobs. The wealthy would be much less likely to spend extra income. Instead they would just save it or invest in the secondary market, which would do very little to motivate additional job creation.

Most good-paying jobs are created by startups, new companies that see opportunities to make a profit.



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