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(单词翻译:双击或拖选)
This week's elections are over, and Republicans did badly. GOP leaders are now saying openly that they need to pass a tax bill or face losing the House of Representatives next year.
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Well, a year can be a long time in politics.
Thirty-five years ago, in Ronald Reagan's first mid-term election, Democrats1 made huge gains, and the experts predicted Reagan might be a one-term president. Instead, two years later, he won 49 of the 50 states.
So you never can tell. But I am more interested in what President Trump2's tax bill would mean for all of us. So I turned to Economics Professor Charles Ballard at Michigan State, a man who for many years has specialized3 in the Michigan economy.
I asked him to analyze4 the plan for me.
Economics is a complex subject, and economists5 are famous for qualifying their predictions. But Ballard wasn't hesitant. He believes the President's tax plan would be an unmitigated disaster for the state, the nation, and for every economic group except the super-rich.
"The first thing to say is that we shouldn't even be talking about a tax cut now, with the economy at or near full-employment," Ballard told me.
Now, there just isn't a big reservoir of unemployed6 workers.
"From a macroeconomic perspective, this is just bad policy," he said, principally because we are getting to the point where the long-term federal debt is beginning to be a cause for serious concern. The federal or national debt first reached a trillion dollars in 1969. It is $20 trillion now, and is projected to reach $23.6 trillion in five years.
Trump's tax plan, as it now stands, would add another $1.5 trillion.
"I am concerned about the amount of debt we are leaving to our children and grandchildren," Ballard told me.
But what about the tax plan's effect on regular Michiganders? Professor Ballard calculated its effects on two married couples. One with a taxable income of a million dollars a year, which doesn't include most of the folks at my dry cleaners.
That lucky couple would get a Trump tax cut of just under $29,000. Then let's consider a couple with a taxable income of $40,000. They would see an actual tax increase of about $800 a year. True, some families in this bracket might not see their taxes rise, because of proposed increases in other exemptions7.
But Ballard said, "the notion that this [plan] is tilted8 towards average families is ridiculous." He added that this is even less good for the working poor.
"The biggest thing that could help those people would be an increase in the Earned Income Tax Credit," he said.
But the plan doesn't propose that.
President Trump asserts that this tax plan will lead to a massive increase in wages, something Ballard thinks is absurd, partly because of a change in corporate9 culture.
Years ago, he said, many CEOs would have used a tax cut windfall for productive investments. Today, he noted10, their first instinct is to increase dividends11.
The bottom line is that this would mean a huge windfall for the wealthy, and add to income inequality and the burdens of the poor. That may not make a difference to Congress, but we should at least recognize this package for what it is.
Jack12 Lessenberry is Michigan Radio's Senior Political Analyst13. Views expressed in his essays are his own and do not necessarily reflect those of Michigan Radio, its management or the station licensee, The University of Michigan.
1 democrats | |
n.民主主义者,民主人士( democrat的名词复数 ) | |
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2 trump | |
n.王牌,法宝;v.打出王牌,吹喇叭 | |
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3 specialized | |
adj.专门的,专业化的 | |
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4 analyze | |
vt.分析,解析 (=analyse) | |
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5 economists | |
n.经济学家,经济专家( economist的名词复数 ) | |
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6 unemployed | |
adj.失业的,没有工作的;未动用的,闲置的 | |
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7 exemptions | |
n.(义务等的)免除( exemption的名词复数 );免(税);(收入中的)免税额 | |
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8 tilted | |
v. 倾斜的 | |
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9 corporate | |
adj.共同的,全体的;公司的,企业的 | |
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10 noted | |
adj.著名的,知名的 | |
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11 dividends | |
红利( dividend的名词复数 ); 股息; 被除数; (足球彩票的)彩金 | |
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12 jack | |
n.插座,千斤顶,男人;v.抬起,提醒,扛举;n.(Jake)杰克 | |
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13 analyst | |
n.分析家,化验员;心理分析学家 | |
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