Tax reform unlikely to help average workers

Dear Editor: Our elected officials in Washington seem to have tax reform front and center. Let’s look at what they are selling.

Lower taxes for many of us. Lower taxes for corporations and small businesses. They tell us that lower business taxes will allow for growth and will lead to more money in our paychecks. In the last few days, they have said the average family will see an extra $4,000 to $5,000 in their annual paychecks. They imply businesses will use their tax savings to pass out raises to rank-and-file employees.

Yes, lower taxes should be good for corporations and small businesses. But what will they do with those savings? Some will expand, some will invest in new equipment and new products. Certainly some tax savings will go to corporate investors and maybe even management. What makes Washington think that they will go to raises for rank-and-file workers? A $4,000 to $5,000 increase would be a 5 to 10 percent raise for many workers. I don’t think so.

Is this just political smoke and mirrors? Remember, “if you like your plan you can keep it,” and “the average family will save $2,500 per year in their health care costs.” It never happened.

If their real goal is to increase middle-class wages, how about tying the business tax cuts to increased wages for employees. Make each business’ tax rate reduction contingent to the size of raises given to rank-and-file employees. No raises for employees, no tax cut for that business.

How much of real tax relief are we going to get? James W. Mushett, CPA

Saugerties