Final tax plan approval will play out at polls

We already know what the Republican members of Congress found in their stockings Christmas morning.

Their Christmas wish came true when they rammed through a massive reform of the U.S. tax plan.

Republicans got their Christmas wish – now they will have to run on it, a plan that polls show is deeply unpopular with the American public, most of whom continue to complain that it tilts far too much toward the rich, lining the pockets of those who need the help the least.

Among those who will have to run on this tax package will be two local GOP Congressmen, Rep. Pat Meehan, R-7 of Chadds Ford, and Ryan Costello, R-6 of West Goshen. Both have steadfastly defended their votes as delivering meaningful tax reform – and savings – to middleclass workers.

Pennsylvania’s two U.S. Senators, Republican Pat Toomey, who actually crafted parts of the measure, and Democrat Robert Casey, split on the tax plan. Toomey, of course, voted in favor. He will not face voters again until 2022. Casey, on the other hand, was one of the measure’s harshest critics and voted against the plan. He’s already being targeted by Republicans as voting against tax relief for middle-class Pennsylvanians. They will decide his fate in November.

So let’s take a look at who gets what in the $1.5 trillion plan.

First and foremost, President Donald Trump gets a big win, his first major legislative accomplishment in his first year in office.

Second, there is a muchneeded cut in the corporate tax rate, going from 35 percent to 21 percent. It will make America much more competitive in the global marketplace.

We’re not nearly as sure, however, that corporate titans will take that money and invest in growth and jobs, instead of simply delivering a massive Christmas present to investors. It was nice to see several major companies, including AT&T and Comcast, announce bonuses for workers shortly after the tax package was approved.

It’s the benefits to individual taxpayers, including much heralded help for the downtrodden lower-income and middle-class, where this bill comes up short.

President Trump and Republicans campaigned long and hard on a promise to make America great again, in particular by remembering the “forgotten” middle class. This package doesn’t do it.

That does not mean there is no benefit for the middle class. There is. The non-partisan Tax Policy Center believes 80 percent of taxpayers will see their tab go down next year. Those making between $49,000 and $86,000 would see their federal tax bill go down by an average of $930 next year, according to figures from the Center.

Those in most need, those making less than $25,000, will see a tax cut of just $60.

On the other end of the spectrum, the 1 percenters earning more than $700,000, will see their wallets fattened by a cool $51,000.

The bill will help families, doubling the $1,000-per-child tax credit to $2,000.

And thankfully, this measure restores some benefits that had been stripped out in the House version, including the deduction for medical expenses not covered by insurance and interest on student loans.

The bill also places a cap of $10,000 that millions of filers – especially those in hightax states – use to offset state and local income, property and sales taxes.

Also on the downside is language that kills off the Obamacare requirement that all Americans carry health insurance or face a tax penalty. The fear is many – especially young people – will go without, thus endangering the entire pool and possibly leading to some not being able to acquire insurance.

Then there is the deficit. Almost every expert fears the Republican plan – pushed hard by one-time deficit hawks like Toomey - will balloon the red numbers by $1.46 trillion on top of the current $20 trillion sea of red ink over the next decade.

For now, Republicans are betting that the immediate carrot of that $900 tax cut for many Americans will outweigh the lopsided nature of this package – and the $7,000-plus boost for the nation’s top 20 percent of wage earners, courtesy of the cut in the top rate from 39.6 percent 37 percent.

Americans didn’t get a vote on this package. Their opportunity will come in November. That’s when we’ll find out just how this “tax cut” sits with the American public.