Congress Eliminates Child Tax Credit, Mortgage Deduction And E.I.T.C From Tax Code
The deeply unpopular congress, whose approval rating hovers around a historic low of 10%, has voted to remove the child tax credit, the earned income tax credit and the mortgage interest deduction from the tax code starting with the 2014 fiscal year. The move is almost assured to solidify the perception of the 113th Congress of the United States as deeply disconnected from the struggles and desires of the populace it is supposed to serve. The move, long championed by entitlement reform advocates like congressman Paul Ryan R-Wisconsin and Ted Cruz R-Texas, will cut entitlement payouts by a staggering 177 billion dollars. 54.33 billion dollars in savings will be realized from discontinuing the earned income tax credit, which generally pays those making less than 12 thousand dollars yearly large cash tax rebates far in excess of the actual tax they paid. 69.7 billion will be saved from the mortgage interest tax deduction, which critics say primarily favors top income earners. The elimination of the child tax credit, which critics say serves no fair purpose, will result in an additional 54 billion dollar savings.  A heavy burst of lobbying preceded the vote by several free market/libertarian groups, most notably ones funded by Koch Industries. Initial democratic opposition and reluctance to vote in favor of amending the tax code withered in the face of overwhelming support from the majority party, and several industry groups. Many Democratic caucus members fled their own party leaderâs stance to vote in favor of the measure with the majority of Republicans, citing their recent defeat in midterm elections as an endorsement by the people of the Republican platform and agenda. Congressional Republican leader Kevin McCarthy called the elimination of the entitlements a major victory for America. He pledged to use the savings to establish a new âJob Creatorâ stimulus for American businesses and corporations: the centerpiece of which would be to cut corporate americaâs tax burden by up to 500 billion dollars annually. Congressman Paul Ryan had nothing but effusive praise for McCarthyâs proposed corporate tax cut. âThis is the great news America has been waiting forâ, said congressman Ryan. âBy placing more money in the hands of Job Creators we can grow and move this economy forward. The detractors will say that giving already wealthy people more doesnt spur the economy. They always do. The detractors will point out empirical evidence and data that they say proves their point. But we will continue to use the undeniable facts of our ideology to make this country great, and not rely on spurious nonsense like empiricism. With more money in their coffers corporations will be able to expand their business, hire new skilled workers and fix the economy that President Obama has ruined.â Conservative Economists working for the Heritage Foundation predict up to 20% yearly growth (depending on data sets) to the American economy if the forthcoming âJob Creatorâ bill is passed. Economist Paul Horner, speaking on behalf of the foundation, said the Dow Jones stock index could easily surpass 25,000, leading to a massive creation of wealth for speculators when the new corporate tax breaks take effect. âAll it takes is for us to redirect the funds that once went toward wasteful entitlements and apply them toward the vital functions of our economyâ, stated Horner. âThe slumbering giants of capitalism will arise from their torpor and rain manna of capital fulfillment on the people from their Plutocratic heights. And that, my friends, is the new American Dream.â