Raise your hand if you thought the Trump tax plan would favor the middle class and the poor.
I see no hands.
Democrats in the House and Senate can fulminate all they want, and the responsible media – and you know who they are – can put banner headlines about economic inequality on their sites and publications, but in the end, cutting taxes for the upper class will always be the GOP’s number one priority.
What’s different this time around is that the deficit hawks who haunted President Obama for his supposed wasteful spending that saved the auto industry and basically the entire economy are…silent. Actually, they’ve defended the multi-trillion black hole that TrumpTax will blow in the deficit, with the otherworldly assumption that economic growth will pay for the tax cuts.
It will not. Yes, economic growth will likely rise in the first few months after the cuts are passed, but at some point the Federal Reserve, with or without Janet Yellin, will raise interest rates enough to cool off the resultant inflation. That will result in some more fulminating from the president who knows less about actual economics than he does about health insurance.
This assumes that the bill is passed as presented today, which also is not going to happen. There are too many moving parts and too many corporate interests that stand to lose for the law to stand. The home building industry is concerned about the mortgage interest deduction. People like me who live in states where state and local taxes are high will put pressure on legislators to put back the deduction for those taxes. The new proposed 25% tax rate for pass through entities could result in many people listing themselves as pass through entities, which would mean they’d pay a lower tax rate.
And, of course, there are other parts of the proposal (still only 9 pages long) that will come out soon that will benefit other groups. Tax bills run into the thousands of pages. I can’t wait to see who gets the breaks and who gets the shaft.
The real impact, though, will mean the most when the bill is written and the true measure of what each group in this country will get out of it is measured in pizzas.
That’s right, pizzas, as in, “the average person will see a $1,600 tax cut, which comes out to $31 per week, or about 2 pizzas.” Right now, the average middle class worker will get about a $660 tax break per year which comes out to $12.70 per week, which is…one pizza. Are you ready to create a multi-trillion dollar addition to the deficit for your pizza? If we need to, we can pool our money together and add pepperoni. Or an anchovy. After the bill passes in its final form, I would not be surprised to see the middle class share fall from a whole pie to slices. And not fat Sicilian slices either.
No matter how you slice it, though, it ain’t gonna to be much for the voters who thought Donald Trump was on their side or that the swamp would be drained. This bill is already fueling the lobbyists who are anticipating a windfall. And the president will still not show us his tax return, so any of his claims that tax reform will not help him are specious at best.
But this is par for the course for our golfing executive. You know: the one who’s currently blaming Puerto Rico for its devastation.
On Wednesday, Donald Trump released a 1 page tax plan that is geared towards putting more money in the pocket of wealthy people like himself. With the little information and lack of specificity outlined in plan, the Committee for a Responsible Federal Budget calculated that based on the plan, America would lost a whopping $5 to $7 trillion in lost revenue over a 10 year period.
CRFB estimates the overall cost could go as high as $7 trillion if limits on tax breaks that the plan suggests apply only to high earners. Or the cost could fall to $3 trillion “assuming credits and exclusions are eliminated as well as deductions.”
But what about economic growth? Treasury Secretary Steven Mnuchin has asserted more than once that the tax plan will pay for itself by generating a lot of growth because the proposed changes will spur investment and create jobs.
CRFB doesn’t buy it, noting that even if tax cuts create more growth than it estimates, there’s “no plausible amount” that can offset the lion’s share of the plan’s cost.
Herman Cain finally came to his senses today on Meet The Press and admitted that – yes, his 9 dollars and 99 cents plan would raise taxes on some individuals. “Some people will pay more. But most people will pay less,” Cain told David Gregory, when asked if the middle class would be paying more under his plan.
Herman Cain’s entire pizza and a soda tax plan depends on overhauling the entire Federal tax system. When asked how he planned to get that done in a politically divided Washington, Cain replied that “it can be done.” Gregory asked what was he basing his claims on, to which Cain replied that it’s based upon “the many speeches I’ve given.” He goes on to say that the American people will make it happen.
Yes people, Herman Cain can get anything done in Washington, based on the many speeches he’s given. If it wasn’t for Michele Bachmann and Rick Perry, Herman Cain would be the dumbest person ever to run for President of the United States.
Apparently Cain thinks very little of the American people’s intellect. The dream world he’s living in has convinced him that middle class America would support a plan that would allow the government to dig even deeper into their already empty pockets.
Wake up Cain, you can get more if you dig in the pockets of the Koch brothers. But you wouldn’t do that, would you?