The new Republican tax plan has been hotly debated and highly criticized. Support for the controversial bill is essentially split across party lines, as the Republicans are the primary demographic pushing for the bill to pass. The tax plan calls for a reduction of the corporate and income tax rates, as well as massive income tax reductions for the wealthy.
For these reasons, the tax plan has become highly scrutinized. The tax plan takes advantage of the middle class, in order to provide extreme benefits for the rich. Once again, Republicans claim that decreases tax rates for the wealthiest Americans will benefit the middle and lower classes by through a phenomenon known as the “trickle down effect.” This phenomenon has proven time and time again that it is unsuccessful in jump starting the economy or benefiting lower and middle income Americans.
It is believed that the tax plan will cause significantly more harm than good. Robert S. McElvain believes the Republican tax reform bill may be disastrous for the United States economy. McElvain has the knowledge and experience to make such claims: He’s a historian from the Great Depression era, and he claims that the new tax bill is eerily similar to the one passed immediately before the Depression began.
The Great Depression of the 1930s devastated countless American families, and can rightfully be referred to as the most disastrous economic event in US history. It’s commonly acknowledged that history repeats itself, and it’s frightening to think that the new tax bill may cause an economic event as devastating as the Great Depression.
In regards to the GOP’s unflinching desire to continuously pursue the ineffective trickle down effect, McElvain said the following:
‘In 1932, in the depths of the Great Depression, Franklin D. Roosevelt called for “bold, persistent experimentation” and said: “It is common sense to take a method and try it; if it fails, admit it frankly and try another. But above all, try something.” The contrasting position of Republicans then and now is: Take the method and try it. If it fails, deny its failure and try it again. And again. And again.’
Unfortunately, the Republican’s stubbornness may prove to be disastrous for the U.S. economy.
Featured image via Getty Images