According to The Washington Post, the tax plan in the House Republican budget would cut taxes by $5.7 trillion over 10 years, with the benefits flowing disproportionately to the very wealthy, according to the Tax Policy Center.
Those taxpayers earning more than $1 million would benefit most by getting a $400,000 tax break that would send their after-tax income soaring by 20 percent while the average taxpayer earning between $40,000 and $50,000 a year would have their taxes cut by $666 on average, increasing their after-tax income by 2 percent. I think the budget’s author, Rep. Paul Ryan, R-Wis., is stacking the deck. There’s a big difference between 20 percent and 2 percent.
Ryan proposes to make up the lost revenue by overhauling the tax code, which would eliminate existing tax breaks and deductions. Making up the $5.7 trillion tax cut would require a 30 percent reduction in existing tax breaks. He doesn’t like the tax code that the fiscal cliff produced so he is proposing a new tax code and wants to repeal Obamacare.
There are some numbers to keep in mind. Six out of every 10 dollars that Ryan cuts come mostly from health care, mostly for the poor by cutting Medicaid or Obamacare. Zero is another number, which is taxes. He doesn’t raise a dollar in taxes. Instead, he brings the entire tax code down to two brackets — 10 percent and 25 percent.
His approach to everything seems to be to go after the poor. Keep all the cuts in Obamacare that he claimed he hated but make them just for the poor.
He goes after the most vulnerable by going after the elderly poor or the non-elderly poor. Just so it is the poor. He voted for TARP to bail out Wall Street, so it doesn’t seem to bother him to spend federal money as long as it is on the rich.
This Ryan budget should be no surprise. The costs are enormous. It will cost the economy 2 million jobs, shrink it by 1.7 percent, and increase unemployment by 0.6 to 0.8 percent. It also privatizes Social Security and eliminates Medicare by turning it into a voucher program.
This budget would further destroy the middle class. It defies common sense and decency with an insistence on serving the corporate interests and the wealthy. This is not just about numbers; it is about people’s lives.