The Tax Cuts for Donald Trump Act:
That should be the name of the
recently announced GOP tax plan. The major beneficiary of this tax plan is not the
American public broadly but, instead, Donald J Trump and his family,
personally.
First of all not reducing the highest income tax rate for higher earners is not
relevant to Trump. Virtually none of his income is taxable at ordinary income
tax rates .
Almost all of Trump's income comes from pass-through entities which will now be given a windfall tax rate of 25%. It is grossly misleading to say this new rate benefits small business. Most truly small businesses already pay at a 25% rate. Rather the only pass entities that will receive this unjustified windfall are the kind in which Trump is invested, including, of course, The Trump Organization.
The second major windfall for Trump and his family is the eventual elimination of the estate tax. It is grossly misleading to present this as a benefit for family farms and small businesses because under current law estates of up to $11,000,000 are exempt from paying estate taxes. This change is exclusively for the benefit of the .1% . This change alone would save the Trump family billions.
Almost all of Trump's income comes from pass-through entities which will now be given a windfall tax rate of 25%. It is grossly misleading to say this new rate benefits small business. Most truly small businesses already pay at a 25% rate. Rather the only pass entities that will receive this unjustified windfall are the kind in which Trump is invested, including, of course, The Trump Organization.
The second major windfall for Trump and his family is the eventual elimination of the estate tax. It is grossly misleading to present this as a benefit for family farms and small businesses because under current law estates of up to $11,000,000 are exempt from paying estate taxes. This change is exclusively for the benefit of the .1% . This change alone would save the Trump family billions.
Finally, the elimination of AMT, as Rachel Maddow
revealed, is the only thing that resulted in Trump paying meaningful taxes for
that year, or any year for that matter. Eliminating it, rather than appropriately modifying it to not apply to upper middle class taxpayers, would save Trump tens of millions of dollars. AMT was intended to insure that the rich still paid taxes. While it has ensnared more than the rich; just terminating it would once again allow some of the richness among us to avoid paying any federal income taxes.
Even this simplistic analysis (of but a few salient
provisions of the GOP tax plan) clearly shows that Donald Trump and his
family personally would be a very major beneficiary of this tax bill.
Thus , "The Tax Cuts for Donald Trump Act" seems
the most honestly descriptive name for the GOP's tax plan.
Eric
At my community bank in Chicago it is very interesting to me that anything marketed correctly will attract an excited constituency among wage earners. "Tax cut" to someone earning a simple pay check with limited opportunities for a little more spending money can sound like nirvana. People of all minorities will put aside all their misgivings about Trump's prejudices for a few dollars extra on their paycheck. Two-thirds of Chicago residents are renters, many use public transportation, have no financial resources beyond a small savings account, and "tax cut" is all they want.
ReplyDeleteTrump has some sort of sense of the populist mind, all the while fleecing and conning his way through life.
What happened to the concerns about balancing budgets, especially during good times? The embarrassment of our rich nation not providing medical services to all its citizens? Free trade? Allowing skilled immigrants to come here. All unimportant to people earning wages.
"TAX CUT" is all the little people want - and Trump knows it!