Rep. Dave Brat said in his letter last week that middle-income families will get a lowered tax this year. But he failed to say that the highest-income families will benefit even more. I got this information from the web site of the same center Brat mentions—the Tax Policy Center.
The Tax Policy Center, in addition to calculating that middle-income families will, in general, receive a tax cut, points out that the benefits are (surprise, surprise) “tilted toward higher income taxpayers,” not only in dollar amount (which you would expect), but as a percentage.
I notice that Brat did not mention this in his commentary. The Tax Policy Center (web site taxpolicycenter.org) also discusses the unpredictability of the long-term effects of such a large money stimulus, since the economy is already at near full employment.
Another concern is the increased deficits if the GOP’s pie-in the-sky expectations for economic growth are not met. The TPC calls these concerns “a large fiscal experiment.” But Brat might only be trying for his re-election, rather than creating an economy we can all benefit from long-term.
Editor's Note: this letter originally appeared in the April 26th edition of the Central Virginian, and has been re-posted here with the author's permission.