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Changes in the estate tax will also benefit affluent families.
For too long, American fiscal policy has been too afraid of taxation, too scared of Big Government and too prone to pursue policy objectives through gimmicky tax givebacks that tend to heavily benefit affluent taxpayers.
So, because we overwhelmingly elect affluent white men, we are governed by laws that benefit affluent white men ― no matter the gender, race or socioeconomic status of those they are elected to represent.
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Tobin once wrote: "We should be especially suspicious of interventions that seem both inefficient and inequitable, for example, rent controls in New York or Moscow or Mexico City, or price supports and irrigation subsidies benefiting affluent farmers, or low-interest loans to well-heeled students".
They would limit other tax breaks that benefit the affluent and tax capital gains and dividends at higher ordinary income rates.
Advocates have called for a "rebalance" of government subsidies, which they say have too long been skewed toward homeownership and mostly benefit the affluent.
The change, which would primarily benefit the affluent, is aimed at encouraging an increase in personal savings and at simplifying the maze of retirement savings choices.
It is possible, for example, to simultaneously cut tax rates for everyone (conservative win) and make the tax code more progressive (liberal win) by eliminating exemptions that mostly benefit the affluent.
The Republicans contended that the Federalists harboured aristocratic attitudes and that their policies placed too much power in the central government and tended to benefit the affluent at the expense of the common man.
It would be far better to close or limit loopholes and deductions, currently worth up to 7% of GDP, which distort behaviour (by, for example, encouraging people to take out big mortgages) and mostly benefit the affluent.
If the party doesn't adapt, the alternative is that its power centers — the Christian right, anti-immigration forces, and proponents of policies that benefit the affluent at the expense of the less well-off — will refuse to adjust, in which case the party risks going the way of the Studebaker.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com