The Republican party recently set new tax cuts for the US, which they have marketed and advertised as part of their plan to make it popular with the general public. A plan that has not worked out.
For anyone with, or looking to get a Washington state Tax ID, the new GOP Tax Law set by President Donald Trump early in 2018 is worth paying attention to, though not worth getting excited about, if recent opinions on the changes are any indication. This is a problem for the GOP, as they did what they could, including announcing temporary bonuses and saying that they’re part of the GOP tax bill, among others, in order to make the law a winning strategy for the party.
For a while, it looked like it was working, with President Trump trumpeting the benefits of the new law on Twitter, and the Republican’s aggressive promotional campaigning.
Then, the Stock Market fell like it jumped off a cliff, nosediving by 1,000 points, the biggest drop in the index since it’s foundation. And it did so twice. Additionally, according to a report from the Tax Policy Center, most of the American public still don’t have a clue as to what the GOP law will actually mean for the year’s tax filings. Holder of Washington state Tax ID, and the American taxpaying public at large, will no doubt be surprised that, thanks to the new law and the changed withholding tables, they owe the state. The issue being that that won’t be made clear until the 2018 midterm election ends.
Another thing about the new law that has raised eyebrows is how it seems to be primarily benefitting big companies. Wall Street Journal recently released an analysis, showing that US company buybacks have shot past $200B within the first three months of 2018, which is twice that of the record for the entirety of 2017. By comparison, the Republican party itself is boasting about four million workers receiving a total of $3B in bonuses. Notably, the individual tax cuts of the GOP law expire by 2025, the business cuts do not.
Needless to say, Americans do not like the new law, with only a third of Americans expecting their income tax cuts. Even a report from a supposedly pro-Trump group stated that about half of Americans believe they’re only receiving crumbs, whilst top executives receive the big bonuses, with House Minority Leader Nancy Pelosi being pilloried for pointing that fact out.
The tax cut is perhaps the only major point the Republicans have, with the Democrats moving in. Ron Brownstein notes that Democrats can link the GOP tax laws with the opposing party’s proposals to cut Medicaid, Social Security funding, as well as the rest of what is known as the social safety net, the winning tactic that Bill Clinton used back in ’95 and ’96.
Democrat Senator Chris Van Hollen, Maryland, leads the party’s 2018 campaign, says that, for this issue, red and blue states don’t matter, as the issue of driving up debt by $1.5T and cutting down Medicare and Medicaid all so big corporations get tax cuts is not something the people are fans of.