Under the House plan, the middle 20 percent of Iowa taxpayers would realize a tax cut of $790 next year, but the cut falls to $340 annually a decade from now. Meanwhile the wealthiest Iowans would see their immediate cut of $36,100 grow to $48,520, according to an analysis from the Institute on Taxation and Economic Policy.
The richest will end up with a break 143 times greater than the middle class.
Young said his vote for this nonsense reflects his "trust in Iowans to spend their money better than the federal government."
Translation: You can buy half a television with your tax cut while we starve Uncle Sam, jeopardize critical government services and drive up the national debt and deficit.
That's because tax cuts do not pay for themselves. They do not generate enough economic activity to be self-financing. Cuts do, however, reduce the revenue collected by the government. Yes, that is the same federal government needing more — not less — money to fund everything from health care for seniors to the military to child welfare.
The 2001 and 2003 tax cuts under former President George W. Bush didn't pay for themselves or unleash some magical economic growth. They put the country further in the hole. Even the most modest analysis by the nonpartisan Congressional Budget Office estimated the 2001 cuts contributed more than a trillion dollars to the national debt in the first 10 years, not including the effect of paying interest on the debt.
Advocating measures to reduce government revenue is akin to advising an Iowan in debt to volunteer for a pay cut at work. It doesn't make any sense.
But that isn't stopping Young. And it's not stopping Sen. Chuck Grassley.
He voted in the Senate Finance Committee to further a slightly different but also dreadful tax bill that would starve government and largely benefit the wealthiest Americans.
"Modernizing the tax code is a once-in-generation opportunity that hasn't been accomplished since Ronald Reagan was president," said Grassley.
Ah, Reagan, the fan of "trickle down economics" that did not trickle down.
After yet another week-long break from work in Congress, Grassley and other lawmakers might want to read the Washington Post op-ed recently penned by Bruce Bartlett, Reagan's economic adviser who helped write the former president's tax cuts. The headline says it all: "I helped create the GOP tax myth. Trump is wrong: Tax cuts don't equal growth."
And American's aren't buying Grassley's tired rhetoric about the tax plans allowing people to keep "more of their own hard-earned money." Only 16 percent of voters think the GOP bill would reduce their own taxes, according to a recent Quinnipiac poll. And damage to those who need help is inevitable.
"Adding $1.5 trillion in debt at the almost certain cost of food and health assistance for the vulnerable and educational opportunities across the board — really did anyone promote that during the last campaign? Did anyone vote for it?" asked Mike Owen, executive director of the nonpartisan Iowa Policy Project.
One has to wonder what Iowans who voted for Young and others were hoping to accomplish. A repeal of Obamacare? Didn't happen and shouldn't. Balancing the federal budget? Congressional Republicans are intent on ballooning the debt and deficit.
Iowa has only six individuals representing our state in Congress. Five of them are now Republicans. They will continue issuing press releases attempting to put lipstick on their fiscal fantasy tax pig. Iowans should respond via email, phone calls and letters.
Des Moines Register, Nov. 24