On Thursday, Nov. 2, Republicans of the House of Representatives released a bill that regarding a new tax plan that would change multiple elements of the current system. The intention is to re-do and simplify the current system.
The bill, if passed, would lower the tax rate for corporations from 35 percent to 20 percent. Approximately a quarter of that cut would benefit workers, according to an estimate from the Congressional Budget Office.
The plan seeks also seeks to eliminate the estate tax, the tax placed on the property inherited from a deceased person.
Additionally, the GOP’s plan calls for a reduction in the amount of tax brackets – different sets of income which are taxed at different set rates – from seven to just four. Historically, there used to be many more tax brackets, according to a Vox report. It has since decreased significantly, making calculating taxes much simpler.
However, some argue that with the help of modern technology and algorithms, there is no need to simplify the system even further, according to Lee Hannah, professor of political science at Wright State.
Other major drawbacks of the plan are that it would increase the deficit and disproportionately benefit wealthier Americans.
The Republican party’s bill is “running into friction at every turn,” said Hannah. “My guess is that this will go through quite a bit of negotiation… this [also] plays against the backdrop of the midterm elections.”
Currently, public reception to the Democratic party is more positive than to Republicans, according to a generic ballot based on a FiveThirtyEight poll. As of Nov. 4, 46.6 percent of people who were asked who they would vote for in the midterm responded with Democrat, whereas 37.9 percent answered Republican. This gap was widened since May of 2017, according to Hannah.
Considering that the support for the Republican party is declining, they have less leverage to push forth their agenda.
