Trump-GOP Tax "Reform:" Our BFF's Get Most First You Fend for Yourself

He cometh and taketh, but not giveth

(Except for his top flock - Trump 10:40)

Major Update and Analysis from Mother Jones here with this headlines:

“Republicans Unveil Huge Corporate Tax Cuts Paid For by Deficit-Spending”

Sub-heading: “The benefits for most Americans are dwarfed by the cuts for wealthy Americans.”

Introduction from the Mother Jones analysis that shows (once again and almost always) the GOP’s BS tax gimmicks which is now more aptly called: The Trump “Con.”

The nonpartisan Tax Policy Center estimates (23 pages) that about 80 percent of the benefits under the initial framework would go to the top 1 percent of Americans. The TPC estimated that the GOP framework would cut middle-class families’ tax bills by $660 next year, compared with $722,000 for the top 0.1 percent of Americans. The GOP claims that the average family would get a $1,182 tax cut.

Story continues at the above MJ link.

======================================================

Original Post: This all GOP tax reform plan directly contradicts Trump's rhetoric and promise to bring tax relief and economic benefit to the stressed middle class. Specifics thus far in a few details contained in a summary and obtained by The AP some are below:

·        Would add $1.5 trillion to the nation's debt.

·        Would preserve the popular retirement account (401k) for middle-class workers thus allowing them to contribute up to $18,000 into the tax-free account.

·        Would limit the deduction for home mortgage interest on new home loans of $500,000 or less – a sharp reduction from the current $1 million cap.

·        Would limit the deduction of local property taxes to $10,000.

·        Would eliminate the deduction for state and presumably local income taxes on Federal filing (this hurts the middle and lower income tax payers greatly and is strongly opposed even from Republicans in high-tax states such as New York and New Jersey, et al) with some saying it is “…the geographic redistribution of wealth, as the GOP picks winners and losers” (i.e., Rep. Lee Zeldin (R-NY) from Eastern Long Island – NY becomes a loser state).

·        Would increase the child tax credit from $1,000 to $1,600.

·        Would although repeal the $4,050 per child exemption.

·        Would shrink the number of tax brackets from seven to three or four: tax rates of 12%, 25%, 35%, and a category still to be determined.

·        Would set a 25% tax rate starting at $90,000 for married couples and a 35% rate beginning  at $260,000, thus upper-income families whose top rate is now 33% percent would face higher taxes – plus, individuals making $500,000 and couples $1 million would face the current Clinton-era top rate of 39.6 percent. (Note: For that highest bracket, the tax writers were considering raising the minimum level of income to $1 million for couples or families from the current $470,000 — a change that would reduce tax revenue).

·        Would nearly double the standard deduction used by most average Americans to a new $12,000 limit for individuals and $24,000 for families.

·        Would increase the per-child tax credit (this would mean tax increases for many upper middle-income families).

Note: Would slash the corporate tax rate from 35 percent to 20 percent, a demand of Trump.

Would repeal the inheritance taxes on multimillion-dollar estates, a big break for the wealthy, including Trump and most of his cabinet wealthy – neat, um?

Conclusion:  However, in all this – the small good, the very bad, and the big ugly as I see it unfolding, there is some lingering opposition from northeastern Republicans (two examples above) fearful of losing deduction for state and local taxes and anxiety among other rank-and-file lawmakers over emerging details, plus opposition to any proposed changes to retirement plans (as been called a “non-starter” by some saying those plans are what most middle-income Americans use as their nest egg or retirement).

How effective those GOPers can or will be in the remains to be seen – probably not enough or arm-twisting to get their support and vote – “walk the party line factor as it were”).

Republicans and Trump argue that sharply cutting tax rates for businesses improves U.S. economic competitiveness, but the possibility of letting the lower corporate rates expire is rankling some longtime advocates who say the uncertainty could limit its boost to the economy. Plus some freedom caucus Republicans wonder how and why they can we pick winners and losers saying it certifiably no sense (i.e., Rep. Mark Meadows R-NC).

My Assessment to Date: Yes small tidbits to average and hard-working Americans low-income, middle and upper-middle income – bread crumbs really a bit here, a bite there, and on balance however, as is typical in these gimmicks with the tax code, and yes, from both sides, the top and those who fund elections (ergo: really big money) are the ones who always benefit the most – that trickle down, right?

Related:

Health care cost: http://weaselwart.blogspot.com/2017/10/trump-sabotages-aca-obamacare-and.html

The “con” kicks in, too http://politicalrapids.blogspot.com/2017/10/boo-happy-halloween-gop-tax-reform-on.html

Big winners under Trump: http://politicalrapids.blogspot.com/2017/10/t-3-trumps-tax-tribute-who-will-benefit.html

Actually all this is more smoke and mirrors and promises to the bottom and middle – which never really comes and when it does, the next cycle it’s taken away just like now – just wait and see.

And, of course, we the people still have not seen Trump’s tax returns – why is that do you suppose? Oops... cat out of bag sure comes to mind, um? A reminder – and a keeper:

September 2016 - 1st debate

Thanks for stopping by as usual.