Rep. Tom Reed was part of WXXI (Public Radio from Rochester) “Connections with Evan Dawson” on Tuesday, November 14 “Discussing GOPs New Tax Plan” program. With him were Michael Kink, Executive Director of the Strong Economy for All Coalition and Dr. Amit Batabyal, Professor of Economics at Rochester Institute of Technology. Since he was in Washington DC, Reed was interview first and did not interact with either of the other guests. After Reed’s portion of the program, Kink and Batabyal responded to Reed’s comments and answered listeners’ calls and emails.
Reed’s comments told us:
- he feels that the groups who published negative analysis of the GOP Tax Plan are groups which manipulated of the data to push their political agenda
- those who present the Plan as a way that increase funds for the super rich are practicing Political Theatre
- a typical family in our district earns $40,000 and will pay $1,600 less in taxes when the GOP plan takes effect
- he is not fighting this fight for the 1%, but for the hard-working tax payer
- he defined the middle class in the NY23rd as families with incomes from 65K to 200K, who are struggling Americans who live from paycheck to paycheck
- he is concern about raising the national debt by $1.5 trillion in 10 years BUT feels that it can be reduced by a growing economy and spending cuts, even though history shows different results
- he notes that if people do not believe that cutting taxes leads to a growing economy, then they should be against Governor Cuomo’s Start Up NY Program (giving tax breaks for new NY businesses)
- he claims that the Regean 1986 tax reform created long-term growth, but denies it increased the deficient and national debt
- spending cuts: we need to get Medicaid and Medicare and Social Security under control
- he believes the President will sign a GOP Tax Plan bill into law this year. (he said the same thing for the 3 failed GOP health care bills)
Reed used the terms : Polictical Theater and hard working tax payers often in this interview. He refused to comment about President Trump’s taxes. He also remind us that his mother raised 12 kids on a single income and she would greatly benefit with an extra $1,600 a year.
After Rep.Reed left the interview, Kink and Batabyal took turns explaining where his logic was faulty, including:
- if Congressman Reed (and the GOP) really wanted to past a tax policy that helped the small businesses they could cap the benefits to the billionaires.
- Middle Class will get some benefit but doing away with Estate Tax and the Alternative Minimum Tax will only affect a minuscule number of people.
- Reducing the Corporate Tax Rate from 35% to 20% produces Red Flags–Most Corporation actually Tax Rate is lower than 20%.
- Most Americans believe that the Wealthy should pay their fair share. If you make more money you should pay a little bit more. We should be closing loop-holes instead of opening up new ones. See Patriotic Millionaires.
- The Plan blows a hugh hole in the deficit. There are better ways to spend $1.5 trillion to create jobs.
- This plan includes new incentives to outsource businesses with the way it treats taxing foreign profit.
- We should be working on plans to help everyone, instead of the Political Donors.
- GOP loves to shout loudly about the deficit when the Democrats are in the White House. They are quiet about it when they are in charge
- cutting taxes does not create more jobs
- if you are going to give tax breaks, give them to people who will spend it quickly, getting it back into the market place
Phone and emails comments brought up included the following ideas:
- colleges will have to pay taxes on gradulate students’ stiphens (tuition breaks) that they give to students to entice them to bein certain graduate programs, or if their parent works at the college
- What is the goal of the tax reform? Once that is known and agreed on, then Congress should work on reaching that goal (Who should pay and how much they should pay?)
- a listener called to promote a Flat Tax, where everyone pays the same rate. The response–the Hedge Fund Manager who owns millions of shares of McDonalds should pay a higher rate than the worker flipping burgers. If you make more, you should pay more. That will fund the infrasture (for example: education, a power grid, highways, clean environment, a legal structure, ) that the industries use to make their profits. Those who benefit from the economy should pay a litle bit more.
Follow this link to listen to the program. Remember Rep. Reed is on for the first 13 minutes.
Read about Rep. Chris Collins in the article “Top GOP congressman: My donors told me to pass the Republican tax bill or ‘don’t ever call me again’ “