America has never been as divided as it is today, with many conflicting opinions about President Trump’s tax plan. One side thinks this plan will “make America great again”, while others disagree and fear that the economy will collapse. Although there are some positive sides to these reforms, the question remains – are we going head first into disaster?
Trump stated: “There will be a major tax reduction”, but what does that really imply? On the plus side, corporate taxes will be lower from the current 35 percent, which is the highest rate so far. This will allow companies to keep more of their revenue, thus giving the economy a little boost. Though the US will become a more profitable industry for a while, president Trump wants to invest $1 trillion into repairing old sewer systems, roads, and the entire infrastructure in general.
Be that as it may, the puzzling part are the changes concerning trade conditions. The proposed border adjustment tax aims towards global trade disputes, as import taxes will be higher, while profit is expected from exported merchandise. According to chief strategist Steve Bannon, these alterations are necessary for American people to prosper and “level the field” for homemade goods. However, the US is already in a $350 billion trade deficit with China, which increases the concern of the adjustment tax effect on the existing agreement.
On the one hand, the average income will become better for a few years, but on the other hand, import will gradually decrease and take down export as well. In addition, what about the existing debt? After the announced reforms, America will hit the debt ceiling as we are already approaching the debt of $20 trillion. Many argue that this change will not help US growth, but quite the contrary, it will slow it down and extensively diminish it.
Nevertheless, the biggest problem is the immigration dispute. Starting in April, it will be harder for outsiders to get an H-1B visa. These visas allow businesses to hire skilled employees from other countries for a given time period. H-1B visas were an excellent tool for companies to dip into the talent of engineering pools and use the knowledge for developing and advancing technology. Additionally, the process of getting the visa will be prolonged to up to a year, as the Customs Services and US Immigration will no longer offer the 15 days premium processing for a fee. Technology companies including Apple, Google, Facebook, and others will suffer due to this regulation, as they will have to endure substantial losses.
However, after a panel of federal judges reviewed Trump’s executive order, they suspended it. But Trump cannot be stopped that easily, and his administration is already working on a new immigration prohibition. After all, his prohibitions are not limited to visas only.
A new legislation for the national right to work (HR 785) bans labor unions and employers from getting workers to join the union for the sake of keeping or getting a job. The legislation introduced by Steve King (R-Iowa) and Joe Wilson (R-SC), would extend the right to work to all states, not only in the 27 who have similar statutes.
Peter DeFazio (OR) and Congressman Bobby Scott agree with the fact that the bill is intended to weaken unions and workers by defunding them. Unfortunately, this legislation will seriously shake the living standards by lowering the health insurance coverage and increasing poverty rates.
In total, there are 10 disturbing bills the Republican Party have on their agenda:
- HR 861 Terminate the Environmental Protection Agency
- HR 370 Repeal Affordable Care Act
- HR 610 Vouchers for Public Education
- HR 899 Terminate the Department of Education
- HR 354 Defund Planned Parenthood
- HR 147 Criminalizing Abortion
- HR 808 Sanctions against Iran
- HJR 69 Repeal Rule Protecting Wildlife
- HR 83 Mobilizing Against Sanctuary Cities Bill
- HR 785 National Right to Work
While people focus on Trump’s tweets and his relation with his wife, Ivanka, they are missing the bigger picture. People should get more informed about new legislations and the future of America. A nation must come together as one and stand united in order to protect the rights we are all entitled to.