Nebraska Democrats claim the Republican tax plans being considered in Washington will benefit the rich, not the Middle Class, and will add to the deficit.
Nebraska Democratic Party chair Jane Kleeb dismisses claims by Republicans tax reform will stimulate the economy.
“It’s essentially the trickle-down economic model that the Republican Party has held for a decade and there is no evidence that that model actually helps Middle Class families,” Kleeb tells Nebraska Radio Network.
Kleeb criticizes both the Senate and House versions, contending they would disproportionately benefit the rich and corporations, doing little for the Middle Class and small businesses.
In fact, Kleeb claims the tax proposals would ultimately hurt the Middle Class and the needy.
Both tax plans seek to simplify the federal tax code. Each would eliminate some deductions popular now with Middle Class families. Republicans say a near doubling of the standard deduction and enhancements of other deductions, such as for dependent care, would more than offset the loss of those deductions.
Both plans cut the corporate tax rate from 35% to 20%.
Kleeb says the elimination of deductions would lower the number of Nebraskans who could itemize. She says any benefit to the Middle Class would be dwarfed by the benefits for the richest 1% of Americans. She also contends corporations would benefit by far more than small businesses from the tax proposals.
Kleeb also reasons that tax cuts will balloon the federal deficit, prompting Republicans to call for budget cuts, which she believes will be targeted at Medicaid and Medicare. Approximately half a million Nebraskans receive Medicaid or Medicare benefits.
Kleeb does agree tax reform is needed.
“But, because Republicans have chosen to essentially ramrod this bill, which is deeply unpopular with Americans, we think that there should be a pause and that a real bipartisan tax bill should come forward.”
AUDIO: Brent Martin reports [:45]