Americans for Tax Reform President Grover Norquist on Monday explained how the Republican tax reform plans will benefit the middle class, despite what many Democrats and even some hold out Republicans may think.
Continue Reading Below
“The people that don’t have a job at all, those are the first and best and most benefiting by lower taxes. The increased tax flow you get from lower taxes…$1,000 and $2,000 a year, that’s better than nothing and it’s better than going up. The 50% to 60% of American who are in the stock market see absolute wealth increasing as you’ve seen shares already go up in anticipation of the bill actually passing,” he said.
Norquist said the value of the Americans 401(k) plans will continue to increase thanks to the lowering of the corporate tax rate.
“When you drop the rate from 35% to 20%, that is a 23% increase in the after tax cash flow of every American corporation that will do very interesting and positive things to the value of peoples 401(k)s and IRAs and most American families are in the stock market,” he told FOX Business' Liz Claman on "Countdown to the Closing Bell."
However, GOP strategist and Trump supporter Ned Ryun is skeptical that the GOP tax plans will help the middle class, saying that they will only receive the “crumbs of the cake.”
“This is a bill that wealthy globalists in private equity and hedge funds and real estate love: it benefits them to the tune of hundreds of billions while letting the middle and upper middle class enjoy the crumbs of the cake,” Ryun said in an op-ed to The Hill.
In addition, Ryun also showed concern about how Democrats will attack the president over giving permanent rate cuts to wealthy corporations and temporary rate cuts to the middle class. The lowering of the corporate tax rate from 35% down to 20% is set to remain permanent, but nearly all of the individual tax cuts will expire in eight years.
Norquist believes the Senate rules are to blame for the temporary cuts to the middle class and is confident that they will become permanent.
“The reason why some of these were made temporary is because of the stupid Senate rules we have to fit everything in. What was made temporary those things that we know will be made permanent like moving the depreciation schedules to full business expensing, it’s only for five years, but like the R&D tax credit, you know it’s going to be permanent. The lower tax rates for individuals as with the Bush ones those will become permanent,” he said.