Tax policy should be talked about honestly

Two things can be said about numbers: numbers don’t lie and you can lie with statistics. Both are true.

Derrick Van Orden in his email to constituents stated, “Our Borders, Budget, and Bureaucracy Act” (OBBB) delivers the largest tax cut in American history, with $10,000 in extra take-home pay for the average worker, no taxes on tips or overtime, and big benefits for seniors and family farms.”

Sounds great — but is it true? Here’s a closer look.

Independent analysts have not confirmed that this is the “largest tax cut ever.” Most people will not see anything close to $10,000 in extra pay unless they’re in very specific circumstances, like working long hours for tips while raising several children.

The “no tax on tips” idea is real and may benefit service workers, but overtime is still taxed like regular income. And while the Child Tax Credit might rise modestly from $2,000 to $2,500, it’s far short of the pandemicera support of $3,600. As for “historic” tax cuts for seniors or a Death Tax break for “two million farms”? That’s mostly smoke and mirrors. Very few farms pay the estate tax today — maybe 50 to 100 per year — so the claim that 2 million would benefit is a wild exaggeration.

Tax policy should help working people, and talking about tax policy should be honest, not political spin to hide the fact that the OBBB facilitates the biggest transfer of wealth to the richest Americans from the middle class and lower.

Eau Claire