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Saturday, February 16, 2019

Reprinted with permission from DC Report.

Donald Trump says his tax plan is “a revolutionary change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor and as wages start going up at levels that you haven’t seen in many years.”

No, it’s not.

It’s just another con job from the most successful con artist in history.

Below are nine examples of how this is a plan of the super-rich, by the super-rich and for the super-rich. And unless you are super-rich, this plan will badly hurt you.

1. You’ll pay high tax rates. The 10% and 15% tax rates, paid by most Americans, will be replaced with higher rates—12% and 25% rates. This helps the poor and middle class how? Your marginal tax rate would rise by either 20% or 67%.

2. Less Income Taxed. Trump says the 12% rate is good because you‘ll get your first $12,000 of income tax-free ($24,000 for married couples). Big deal. Currently, you get $9,350 tax-free ($18,700) so it’s not much of a boost and you no longer get exemptions for your kids and reduced tax credits for any dependent who is not a child, like say your elderly mother or impoverished brother.

3. Trump Will Pay Less Tax. The top tax rate on partnerships and limited liability companies would fall from 39.6% to 25%. Trump has more than 500 such businesses. His tax rate would fall by more than a third.

4. Corporations Pay Less. The corporate tax rate would be cut from 35% to 20%. This at a time when corporations have record amounts of cash and interest rates are super low. The savings will make it easier to buy back stocks, which makes executive stock options more valuable because fewer shares make each share more valuable.

5. Rewarding Corporate Tax Dodging. Companies that used accounting to convert profits earned in America into tax-deductible expenses paid to their offshore subsidiaries will get a tax holiday, bringing the profits back with little or no tax. The taxes avoided by moving money offshore are in effect loans from Uncle Sam at zero-percent interest so this would be a double dip of corporate welfare.

6. Trump Kids Win. Trump would repeal the estate tax so if he really is worth $0 billion—he’s not—he would save $4 billion. At even $100 million he would save $40 million. While he claims his tax plan “is not good for me,” it will, undoubtedly, be good for Donald Jr., Eric, Ivanka, Tiffany and Barron Trump.

7. Trump Pays 85% Less. Had the tax plan been in effect in 2005 Trump would have paid a tax rate of less than 3.5%, a rate lower than the poorest half of taxpayers. That’s because he would repeal the Alternative Minimum Tax. Here is our exclusive on his tax return from March.

8. More Jobs Would Go Offshore. While only vaguely described, the plan would encourage companies to move jobs offshore, the exact opposite of what Trump administration said. Poor countries overseas will offer tax-free profits or minimally taxed profits in return for jobs—jobs that will pay very low salaries by American standards. American companies that offshore jobs to these countries will get a twofer—cheap labor and no taxes.

9. Saving Gentleman Ranchers. Each year about 2.6 million Americans die. Fewer than 5,000 of them pay any estate tax. Trump drags out the old lie that this is to save the family farm. Only 80 of those 5,000 taxable estates include farm property—and they are gentleman farmers like Ted Turner (pictured here) with his herds of buffalo, not yeoman farmers working tractors in their corn and soybean fields.

Of, By, and For The Super-Rich

The bottom line: This plan only makes sense if you believe, like Trump and many Congressional Republicans, that America’s greatest economic problem is that the rich do not have nearly enough. If you believe the rich just cannot afford to invest in ways that create jobs and grow the economy this is the plan for you.

 

David Cay Johnston’s latest book is The Making of Donald Trump. He won a Pulitzer Prize while covering federal tax policy at the New York Times, and is the founder and editor of DCReport.

 

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7 responses to “9 Reasons Trump’s Tax Plan Will Hurt You”

  1. jakenhyde says:

    Why izzit that every time congress decides to “simplify” the tax code, tax preparers have to go back to school to try to figure out the new much more complicated code?

  2. rednekokie says:

    If you believe anything this orange haired gibbon says — about anything — you certainly deserve to pay more and higher taxes.
    He is an out and out liar, and a thief, as well.

  3. ivory69690@yahoo.com says:

    9 Reasons Trump’s Tax Plan Will Hurt You // Donald Trump says his tax plan is “a revolutionary change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor and as wages start going up at levels that you haven’t seen in many years.” DUMPSTER DONNY & his gang of pinheads =GOP party . all like DUMP 45 pathological liar’s the whole party of clowns had the chance to do that give the middle class and all the people of the country more money on the min. wage’s to $15.00 per hr. and with all you B/S artist the thing would passed for sure . but nooooooooooo instead you gang of clowns passed on what the B/S you are saying now by giving the middle class and the people more money . its one thing to say it another thing to DO AS YOU SAY . and that you and DUMP 45 cant do what you say . for doing that would mess up your whole pathological lying clown show .

  4. Dapper Dan says:

    When reading between the lines when the republicans talk about cutting taxes they obviously don’t include the middle class or working poor. In order to pay for the generous tax cuts they give to big corporations and the one percent their goal is to to cut social programs like Medicare and Social Security. We’ve literally become a society of The Haves And The Have Nots squeezing out the middle class usually joining the ranks of the new working poor. Of course our deficits and National Debt just keeps growing putting pressure on the Fed to raise interest rates to keep inflation in check. When the Hell is the moderate wing of the republicans wake up and take back control of their party ? Currently I see John Kasich at the vanguard of this moderate wing who’s openly talked about leaving the party altogether. If he does the GOP will die out for sure

  5. Trump and the GOP think that the rest of us imagine that money grows on trees. Otherwise, how do they expect average Americans to keep up with inflation, and pay the lion’s share of paying for services and infrastructure without Trump and fellow wealthy Americans and corporations to get away with paying so much less relatively speaking.

    Trump and the GOP’s con and cunning will be the cause of their premature and long-awaited demise, in some form or another. Extremes of wealth and poverty have since the beginning of time been a key source of tensions and eventual social upheavals. Trump and the GOP are simply too stupid to understand this fundamental fact of how human society best functions.

    Only by Trump and the GOP abandoning this obsession with amassing vast sums of money will we be able to avert a total collapse of American society—this is no idle observation. The Czars of Russia failed to take note—where are they now? Napoleon, Franz Josef, the Weimar Republic, and other Europeans ignored the dangers posed by huge disparities in income distribution. Asian emperors, Arab rulers and Ottoman Turks failed to understand and were eventually deposed; African princes and rulers, Papa Doc in Haiti, and South American military regimes, failed to heed the warnings to avoid creating extremes of wealth and poverty, and they are history.

    And now, Trump and GOP are next in line, along with others who insist on ignoring the dangers of a widening gap between the rich and the poor.

  6. ““Each one of you must have great consideration for the poor and render them assistance. Organize in an effort to help them and prevent increase of poverty. … [T]he laws of the community will be so framed and enacted that it will not be possible for a few to be millionaires and many destitute. One of Bahá’u’lláh’s teachings is the adjustment of means of livelihood in human society. Under this adjustment there can be no extremes in human conditions as regards wealth and sustenance. For the community needs financier, farmer, merchant and laborer just as an army must be composed of commander, officers and privates. All cannot be commanders; all cannot be officers or privates. Each in his station in the social fabric must be competent — each in his function according to ability but with justness of opportunity for all.”
    .
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    By His example, ‘Abdu’l-Bahá eschewed every hint of pomp or pretense. While in New York, He received dozens of poor Bowery children to visit Him at the elegant home where He was residing. As the rowdy boys crowded into His room, He greeted each with a warm handclasp or a friendly hand on a shoulder, all with smiles and laughter. On another occasion, He greeted a soot-covered man who had ridden the rails across country to New York see ‘Abdu’l-Bahá. He welcomed the grimy traveler into His room in that same posh Upper West Side house, greeting him with a kiss to his soot-blackened cap.

  7. 1standlastword says:

    I have become such a cynic since GWB that I can’t see any historical reason why this tax plan won’t get bipartisan support: The Republicans today lack morals so they’ all in the bag for DJT; the Democrats will need to make small modifications and gain some meager social conscience concession to make themselves feel a little guilty before they get onboard. That’s how I see this. Otherwise, DJT comes up goose eggs ???? on bread and butter policy matters and of course the scorn would jeopardize this current permanent political class that has been working for itself all along ….I mean how else to explain how we got here.

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