Republicans passed a huge tax reform bill in late December. This was after an extended process of joint conferences and dealing with several roadblocks put up by Democrats. Ultimately, President Trump kept his promise to sign a tax reform bill into law before Christmas.
I say Republicans, however, and not “Congress” because not a single Democrat voted in favor of the bill. Democrats refused to put more money in the hands of every American and relieve their tax burden to grow the economy. This is yet another example of what blind political tribalism and an out-of-touch sense of reality can do to people.
The bill includes great provisions like the ObamaCare individual mandate repeal, an increased child credit, and downgraded itemization. However, one of the most important features of this bill is the cut to the corporate tax rate. The bill decreases the corporate tax rate to 21%, down from 35%.
If you watch mainstream media, you might think that this is a backhanded, evil gesture that helps corporate fat cats. In reality, relieving the highest corporate tax rate in the developed world has enabled companies to offer more competitive incentives. Among these incentives are bonuses and an overall increase in base pay. The tax plan also offers credits to employers who increase paid family leave.
This is great news for conservatives, who argue that relieving burdens on businesses allows them the flexibility to compete in a free market and fight for their employees. The fact that companies have actually started doing this demolishes leftist arguments that all businesses are greedy and evil.
Sen. Bernie Sanders said this when asked about the rising wages, and increased incentives to employees from corporations in response to the tax reform bill:
Middle class tax cuts are a very good thing, and that is why they should have been made permanent. But what the Republicans did is made the tax breaks for corporations permanent, and the tax breaks for the middle class temporary.
Yes, you just saw Bernie Sanders arguing for tax breaks. Bernie originally argued that tax cuts would be the literal beginning of the apocalypse.
To show even more of how Democrats are so out of touch, Nancy Pelosi said that the bonuses and incentives business are offering their employees in response to the tax cuts are nothing but “crumbs”. Maybe these bonuses are crumbs to someone worth $29 million who has been a D.C. politician since the 1980s. However, to real middle class families, $1,000+ bonuses, increased family leave, and roughly $45 more per paycheck is real money. Those benefits can really make a difference for them. To see exactly how this tax bill affects you, here is an online calculator.
Democrats would have supported the tax bill fifteen years ago, because it is great legislation that helps all Americans. This is also the Trump administration’s biggest victory thus far, and should be celebrated by conservatives and Americans everywhere. The general conservative philosophy is to allow workers to keep more of their own hard-earned money. This gives them the freedom to spend it how they see fit for themselves, and their families. Let us all be grateful that we have a President who finally recognizes the importance of limited government and freedom.