Reed defends GOP Tax Plan

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’ “

 

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About pystew

Retired Teacher, political science geek, village trustee. I lean a little left, but like a good political discussion. My blog, the New NY 23rd (http://newny23rd) is about discussing the issues facing the people of our new congressional district. Let's hear all sides of the issues, not just what the candidates want us to hear.
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12 Responses to Reed defends GOP Tax Plan

  1. whungerford says:

    The ten bulleted points taken together suggest that Tom is motivated by his personal beliefs (he feels, he claims, he believes). Speaking of hard work and his mother’s hardship suggests he wants others to endure that too.

    Like

  2. cathkestler says:

    And I’m going to tell you what Reed won’t, his Mama got help through whatever program out there. Reed, Ryan, and the likes have all utilized whatever they could to make ends meet, they just don’t want to see anyone else get a little help when it’s needed.
    Why do you think that the programs getting slashed to the bone all affect the middle-class? Because their top donors have sent out the marching orders and Reed and his ilk truly don’t give a damn about the majority of his constituents.
    It’s all about the Benjamins, truly.
    #ReedsLastTerm
    #ByeByeTomTom

    Like

  3. whungerford says:

    George Lakoff writes:

    It’s time for the Democratic Party to examine its soul and remember why it’s the only major political party that reflects the progressive idea of our nation – a government of, by, and for the People.

    It is also the only major party to accept the founding idea of our nation, that citizens care about their fellow citizens and work through the government to provide public resources for the benefit of all. Whether private lives or private enterprise, public resources from roads, bridges, airports, and sewers to public education and public health, to science and technology — computer science (thank NSF and DARPA) to satellite communication (thank NASA) to modern medicine (thank NIH). The private depends on public resources! Every Democrat knows this truth, and it is assumed by almost all Democratic legislation.

    Hopefully, we can explain our beliefs effectively.

    Like

  4. Arthur Ahrens says:

    Art’s unofficial Reed Vs. Democrats Publicity Tally For NY-23 since 11/9/2016
    Includes Town Halls, Television Appearances, Editorials, Press Conferences, Newspaper Articles, Missed Opportunities

    Tom Reed 56
    Democrats 10
    Non-affiliated PRO Reed 1
    Non-affiliated ANTI Reed 4
    Democrat Missed Opportunities 11
    Reed Missed Opportunities 0

    Like

  5. Arthur Ahrens says:

    Kathy Hochul was in Yates County last week.
    I can find no mention of any meeting with Yates County Democrats.
    Why?

    Art’s unofficial Reed Vs. Democrats Publicity Tally For NY-23 since 11/9/2016
    Includes Town Halls, Television Appearances, Editorials, Press Conferences, Newspaper Articles, Missed Opportunities

    Tom Reed 56
    Democrats 10
    Non-affiliated PRO Reed 1
    Non-affiliated ANTI Reed 4
    Democrat Missed Opportunities 12
    Reed Missed Opportunities 0

    Like

  6. pystew says:

    Arthur, We often State and Federal giovernmental officials visit the County for offiials purposes. Senator Schumer, Senator Gillibrand, NYS Comptroller DiNapoli and Lt. Governor Hochul have been in Yates since this summer for OFFICIAL purposes (getting information about problems, or explaining what is happening at their governmental level–not for political reasons. Hochul talked to business leaders and ohers (The Superintendent of Penn Yan Schools attended as well as business owenrs and area farmers)–It didn’t matter which party they are. I attended the DiNapoli event as a Trustee of Penn Yan, not as a Co-Chair of the Yates Democrats. I was surprised that Hochul’s office contacted me a day before they came and she wanted to coffee together. In reality it was at the most a 5 minutes meeting. Again, the officials do not want their visits be or look partisan. I doubt a one liner in the Chronicle Express would have any affects on the Reed campaign.

    Like

  7. Arthur Ahrens says:

    More’s the pity….
    Tom is not shy about grabbing publicity. And it serves him well.

    Like

  8. Maloogie says:

    People who are losing itemized deductions 30% of all taxpayers have been trashed. If you’re blind and elderly you’ve lost three personal exemptions for over $12,000. If you’re paying a nurse to come in and 10 for Grandma 30-50 thousands of dollars you just lost that deduction. Your state and local taxes don’t count. Worse your state and local taxes that depend upon the federal long form and itemization? Your state taxes will double. If your home is robbed You’ve Lost That deduction. If you have a storm or hurricane that cost you more then your insurance can replace You’ve Lost That deduction.

    If you live on the east and the West Coast if you live in Utah or Wyoming New Jersey New York Washington Delaware mostly red States but quite a few blue ones you’re screwed. It isn’t some highfalutin argument between rich and poor. Both the Senate and the house versions of alleged tax reform screw the middle 25% to 75% of American taxpayers in favor of mostly the upper 25%.

    Like

  9. pystew says:

    Thanks for your fine summary of the GOP tax plan. Our congressman approves of all of it.

    Like

  10. Arthur Ahrens says:

    Here is an interesting article about the tax plan. I will save its provenance until later.
    ——
    If it’s enacted, the GOP tax cut now working its way through Congress will be the start of a decades-long economic policy disaster unlike any other that has occurred in American history.
    There’s no economic justification whatsoever for a tax cut at this time. U.S. GDP is growing, unemployment is close to 4 percent (below what is commonly considered “full employment”), corporate profits are at record levels and stock markets are soaring. It makes no sense to add any federal government-induced stimulus to all this private sector-caused economic activity, let alone a tax cut as big as this one.
    This is actually the ideal time for Washington to be doing the opposite. But by damning the economic torpedoes and moving full-speed ahead, House and Senate Republicans and the Trump White House are setting up the U.S. for the modern-day analog of the inflation-producing guns-and-butter economic policy of the Vietnam era. The GOP tax bill will increase the federal deficit by $2 trillion or more over the next decade (the official estimates of $1.5 trillion hide the real amount with a witches brew of gimmicks and outright lies) that, unless all the rules have changed, is virtually certain to result in inflation and much higher interest rates than would otherwise occur.
    —————-
    Here’s a hint: The title of the article is “GOP Tax Bill Is The End Of All Economic Sanity In Washington”

    Do you have an idea where it appeared? No?

    Another hint: the author is budget expert Stan Collender

    How about now? No?

    Ok…. the article appeared in that liberal bastion of communism…FORBES.

    Collender concludes his analysis by observing that if the GOP manages to pass its bill, it will handcuff the federal government for a decade, leaving it unable to respond to the inevitable downturn that will come at some point.

    In addition…he’s far from the only one who doesn’t like what they are seeing. NPR talked to 38 economists from prominent universities, including Yale, Berkeley, MIT, and the University of Chicago. When asked if the Republican plan would spur economic growth, only one of the 38 said yes, and even he qualified his vote by noting the growth would not be distributed in a “fair” manner. When asked if the Republican plan would make the national debt “substantially higher,” all 38 said it would.

    Of course, our ‘conservative’, ‘fiscally responsible’ congressional representative, Tom Reed knows better and will vote accordingly.

    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
    —-Upton Sinclair

    Like

  11. Rynstone says:

    I thought I would share my friend Betsy’s op-ed on the GOP tax Bill;

    A Road Map to Move The Tax Cuts into Law

    House and Senate Republicans are racing to hammer out a tax-cut agreement that blends the House bill passed on Nov. 16 with the Senate version that squeaked through at 2 a.m. Saturday with one vote to spare. Failure is not an option. They must deliver a final bill to the president for signing before Christmas.

    The stakes are high economically and politically. For too long, America’s uncompetitive corporate-tax rates have suppressed growth and wages, and driven companies to leave the United States.

    If Republicans fail on tax reform, they could lose their grip on Congress in the midterm elections. That would leave President Trump without a legislative partner to push through his pro-growth agenda.

    Here’s the roadmap for success: The House should adopt the Senate’s repeal of the ObamaCare penalty, and the Senate should agree to slash corporate taxes as of Jan. 1, 2018, not a year later as the Senate bill currently says. Delaying the corporate tax cuts risks an economic downturn in 2018 and defeat for GOP lawmakers next November.

    Senators postponed the corporate-tax cut until 2019 in order to pare $127 billion from the cost of tax reform and stay within Senate rules.

    But economist Arthur Laffer warns that delaying the cut will encourage companies to defer production and income for a year so that their profits will be taxed at the lower rate. That could tank the economy in 2018, and take the GOP majority in Congress down with it.

    A safer bet to keep the cost of the bill within Senate rules is for GOP senators to embrace the House’s proposal for a $1,600 child tax credit, instead of raising it all the way to $2,000. That compromise would cut $150 billion off the cost.

    Doubling the child tax credit to $2,000, as the Senate bill does, and paying for it by delaying corporate tax cuts, is a whopping mistake.

    “Yes, everybody likes little kids. But not everyone has them. Only a small segment of the population benefits from that credit,” explains economist Larry Kudlow, a chief architect of the Trump tax plan. “Everyone will benefit” from reducing corporate tax rates immediately. It’ll “create an investment boom. There will be no losers.”

    What should the House take from the Senate’s version? According to House majority leader Kevin McCarthy, his members are ready to adopt key Senate provisions, including continuing to allow home-buyers to deduct interest on up to a $1 million mortgage. The House plan caps it at $500,000 mortgages.

    Most important, House members are eager to include the Senate’s repeal of the ObamaCare penalty for not buying insurance. Bravo.

    Democrats, meanwhile, are claiming that eliminating the penalty — in effect, making ObamaCare voluntary — will spell disaster for millions of people with ObamaCare plans. That’s demagoguery. People who want to stay in ObamaCare won’t lose their subsidy or their eligibility.

    But abolishing the penalty will be a big tax break for the 6.7 million filers currently getting whacked for not buying ObamaCare-compliant insurance.

    Removing the penalty may cause ObamaCare premiums to rise slightly — the Congressional Budget Office speculates about 10 percent — but most buyers get subsidies that insulate them from premium hikes. Those who don’t will finally have the freedom to buy plans without ObamaCare’s costly requirements and save a bundle on insurance.

    As the calendar runs out, House and Senate Republicans will have to compromise on a dozen other differences between their tax bills, including the treatment of medical expenses, interest on student loans, the alternative-minimum tax and gains on selling stock.

    There will be winners and losers with each decision. But on balance, Americans will get to keep more of what they earn. And businesses will be encouraged to invest, grow and hire.

    Tell the prima donnas and fence-sitters in Congress who failed to repeal ObamaCare that it can’t happen again. The nation needs tax cuts now.

    Betsy McCaughey is a senior fellow at the London Center for Policy Research.

    Like

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