Congressional Republicans have released some of the details
of their proposed rewrite of the federal tax code, and the Texas Association of
Realtors responded with a study showing the vast majority of homeowners in this
state would pay more taxes if the current proposals are passed into law. The
realtors’ study also shows the Republican plan would cost Texas more than 22,000 jobs and $3.4 billion
in economic activity, mostly due to the distribution of tax breaks being
weighted to the top 5%.
Republicans are also promoting a budget that cuts Medicaid
by $110 billion a year. Remember that a substantial fraction of Medicaid covers
costs for about two thirds of nursing home residents. That means many of us
could end up with our aging and ill parents and in-laws living with us. Are you
ready for that?
In addition to those cuts the Republican proposal calls for
$47 billion a year in Medicare cuts and raising the eligibility age from 65 to
67. While the proposal doesn’t say exactly how those cuts will manifest
themselves they are guaranteed to come out of the pockets of retirees who
depend on it for their healthcare. As to raising the eligibility age well that
just means higher private insurance costs and industry profits as those of use
reaching that again see our premiums rising rate of illness with age. Employer
based insurance coverage will also cost more small companies with older
employees.
These proposals haven’t gone unchallenged, Democrats in Congress
have offered “The People’s Budget”. Where Republicans would cut the healthcare
for seniors and reduce the number of people eligible for Medicare/Medicaid Democrats
would expand Medicare by offering the Public Option which would allow every
American to buy their insurance from Medicare if they can’t find a better deal
on the private insurance market.
The Democrats proposed budget permits the Secretary of
Health and Human Services (HHS) to negotiate cheaper drug prices with
pharmaceutical companies. This will significantly lower the price of
prescription drugs for seniors and save Medicare $429 billion. The People’s
Budget also combats monopolies held by drug companies and the use of patent
settlements to block generic drug competition for a growing number of branded
drugs. The People’s Budget ensures Americans have access to affordable
prescription drugs.
The Democrats proposal would eliminate the preference for
investment income over labor income which allows a hedge fund manager to earn
the same amount as salaried employee and yet allow them to pay a lower tax
rate. Currently, the tax code gives preferential treatment to income from investments,
long-term capital gains, and qualified dividends. The People's Budget ensures
the rich pay their fair share by creating new tax brackets for millionaires and
billionaires. It preserves existing marginal tax rates for middle-class
families while restoring Clinton-era tax rates on annual incomes above
$250,000. For annual incomes above $1 million, it would adopt new progressive
tax rates topping out at 49% for $1 billion and over.
While the Republican budget cuts billions from public
education spending The People's Budget provides universal access to quality
pre-k programs, which will expand social mobility by helping low-income and
at-risk students read and write at the same rates as their peers. It would also
provide $41 billion a year to eliminate undergraduate tuition and fees at
public colleges and universities.
Even with the cuts proposed by congressional Republicans their
budget would increase the deficit $200 billion each year because they also
increase tax breaks for big corporations and the 400 or so wealthiest families
in the nation. This is the era of Borrow and Spend Republicans.
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