With nervous head and shaking fingers, I finally venture out from the shadows to making my first post…
Okay, so I know that the topic is a little old, but I just wrote the letter and felt compelled to share it. I’m not a policy wonk, someone steeped in politics, or even a professional writer. Just someone who’s finally reached the point of realization that I MUST act more. Do more. Speak up more.
Back in December I made repeated calls to my representatives about the then proposed tax bill. Yesterday I got a response from Senator Chuck Grassley (R-IA). (A more experienced diarist would put a link or quote parts of the letter, but that’s not me...I’ll just post a screenshot below.)
Sure, I know it’s a form letter written by a lackey, but I needed to respond:
Dear Senator Grassley,
Thank you for your response to my call regarding the tax bill. I appreciate having dialog with our elected representatives.
However, I am deeply troubled by many aspects of your letter. For starters, your opening paragraph talks about the tax code being in “dire need of reform.” The implication is that the newly passed bill somehow address this. That is laughable at best. The bill does NOT make the tax code any less complex. Furthermore, should such an overhaul be done CORRECTLY, it would involve open hearings, community input, and a bipartisan approach, none of which was done with this bill. The approach taken on this bill is quite disturbing, whether being pushed by Democrats or Republicans, and I think you would agree with me on that point.
In addition, while you correctly point out that the Joint Committee on Taxation showed a tax cut across the board, you failed to point out that tax cuts for corporations and the wealthy are permanent, and that the cuts for everyone else expire in 10 years. That same committee that you referenced said that the middle class will see a tax INCREASE starting in 2027. This is going to hurt the vast majority of Iowans. This makes it hard to believe that you are looking out for our best interests.
You go on to suggest that the reduction in corporate tax rates is a good thing, and that “one thing is clear; corporate rate reduction results in bigger paychecks.” This is FALSE. According to the Economist, such a "claim has sparked a debate among economists.” If economists are debating this, then it is certainly NOT clear. To give you an alternative perspective, the Economic Policy Institute said of the claims that cuts to corporate taxes will result in higher wages: "This claim is clearly wrong. Economic logic and evidence argues strongly that American workers should not expect any noticeable wage boost from cutting corporate income taxes.” And you don’t have to hear this from a policy institute, you can just listen to corporations themselves. As was reported in Bloomberg Politics, "Major companies including Cisco Systems Inc., Pfizer Inc. and Coca-Cola Co. say they’ll turn over most gains from proposed corporate tax cuts to their shareholders.” Please be sure to have your facts straight when deciding on bills.
One other item I’d like to acknowledge in your letter is this: When you write that "statutory corporate rate [is] the highest in the develop (sic) world,” you are making an incorrect claim. (NPR.) That’s a minor, but important point. The main thing to point out to you is that you’re totally ignoring the fact that businesses pay far less than the statutory rate. This is known as the effective rate. In fact, according to the Center on Budget and Policy Priorities, the "Actual U.S. Corporate Tax Rates Are in Line with Comparable Countries.” Surely you must know this.
Iowans expect more from you. I hope you work harder to get correct information to your constituents.
I look forward to continuing the dialog with you.
Sincerely,
Tom
So, there you go. Thought I’d share this. Maybe I can get feedback on this so that my next letter is more effective.
Oh, and here’s his letter: