Berks

Albright College economics professor talks Senate tax bill

'It's going to create some stimulus'

READING, Pa. - The debate over the largest tax reform plan in decades isn't over yet as Republican Pennsylvania U.S. Sen. Pat Toomey held a news conference in Philadelphia on Monday to praise the proposal.

"We fundamentally restructure the business tax code so that American workers and businesses can compete in a global economy," Toomey said.

Senate Republicans also said their bill will help the middle class.

"It definitely lowers the tax burden on low-income and middle-income working families," he said. 

Opponents, like independent Vermont U.S. Sen. Bernie Sanders, said it's not the way to go. 

"Sen. Toomey was one of the leading advocates for this bill," Sanders said during a rally in Reading on Sunday. "Trickle down economics is a trick. It's a fraud. It has never worked and it will never work."

Sanders said he's concerned about what the bill could do to the deficit. 

"You don't say to the young people of America, 'Hey, I got a great gift for you. I got a $20-trillion debt. I didn't have the guts to deal with it. I'll let you," he said.

Farhad Saboori, an economics professor at Albright College in Reading, said he has questions for both sides about the deficit and debt. He sees it as a "supply side" bill.

"Creating more incentives for businesses to invest, for corporations to bring their operations back to the United States and create economic activity," Saboori explained.

Will that equal increased wages and more job growth? Saboori said that is still unclear.

"The opportunity for more investment is really not there or hasn't changed. Why would they hire more people and create more economic activity?" Saboori said.

He does, however, see some stimulus opportunity for the middle class.

"There's some additional tax deductions for middle class," he explained, "so, it's going to create some stimulus." 

The bill itself has not been finalized, as both the House and Senate will meet in conference committee to iron out details before the bill goes to the President Trump's desk.


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