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Wednesday, November 15, 2017

Paul Krugman: Republican Class Warfare: The Next Generation

"This isn’t just ordinary class warfare; it’s class warfare aimed at perpetuating inequality into the next generation.":

Republican Class Warfare: The Next Generation, by Paul Krugman: The other day, Mitch McConnell, the Senate majority leader, admitted to The New York Times that he “misspoke” when he declared that his party’s tax plan wouldn’t raise taxes on any middle-class families. But he misspoke when he said “misspoke”: The proper term is “lied.” ...
We’re still waiting for detailed analysis of the Senate bill, but the House bill doesn’t just raise taxes on many middle-class families: It selectively raises taxes on families with children. In fact, half — half! — of families with children will see a tax hike once the bill is fully phased in.
Suppose that a child from a working-class family decides ... to attend college, probably taking out a loan to help pay tuition. Well, guess what: Under the House bill, that interest would no longer be deductible, substantially raising the cost of college.
What if you’re working your way through school and your employer contributes toward your education expenses? The House bill would make that contribution taxable income.
What if your parent is a university employee, and you get reduced tuition as a result? That tuition break becomes taxable income. So would tuition breaks for graduate students who work as teaching or research assistants.
So what we’re looking at here are a variety of measures that will close off opportunities for children who weren’t clever enough to choose wealthy parents.
Meanwhile, funding for the Children’s Health Insurance Program, which covers more than eight million children, expired a month and a half ago — and so far, Republicans have made no serious effort to restore it. This is surely the shape of things to come: If tax cuts pass, and the deficit explodes, the G.O.P. will suddenly decide that deficits matter again and will demand cuts in social programs, many of which benefit lower-income children.
So this isn’t just ordinary class warfare; it’s class warfare aimed at perpetuating inequality into the next generation. Taken together, the elements of both the House and the Senate bills amount to a more or less systematic attempt to lavish benefits on the children of the ultra-wealthy while making it harder for less fortunate young people to achieve upward social mobility.
Or to put it differently, the tax legislation Republicans are trying to ram through Congress with indecent haste, without hearings or time for any kind of serious study, looks an awful lot like an attempt not simply to reinforce plutocracy, but to entrench a hereditary plutocracy.

    Posted by on Wednesday, November 15, 2017 at 10:22 AM in Economics, Politics, Taxes | Permalink  Comments (17)


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