Monday, November 28, 2016

Trump the Taxman Cometh: Flim-Flam Man or Con-Artist — Take Your Pick

Ready or Not Here I Come

Trump’s Tax Policy: An Analysis from the Tax Policy Center

Introduction (and three main points):  “Trump's campaign rhetoric may have been populist, but his tax plan isn't.” (Say most tax experts). 

1.  Trump's campaign rhetoric promoted tax benefits for middle-income Americans with him saying: “There will be the largest tax reductions are for the middle class (Cited in his 4-page: “Contract with the American Voter”) released just last month.

2.  Middle-income Americans pay a relatively modest share of federal income taxes compared with the wealthy. The Trump plan further limits the scope of what tax cuts could do for the middle-class while greatly helping the top 1-2%.

3.  We have seen big tax cut proposals and tax cuts ever since Ronald Reagan, but things have been getting worse for the middle-class since.

Specific Highlights:

1.  Most married couples with three or more children would pay higher taxes.
2.  Middle-class families as a whole would receive tax cuts of only about 2%.
3.  Those middle-class taxpayers and their measly 2% tax cut would be dwarfed by a windfall tax cut for the top 1% of some 13.5%.
4.  Reduce the number of tax brackets from seven to three, with rates of 12 percent, 25 percent and 33 percent.
5.  Slash the top rate from the current 39.6 percent to 33 percent.
6.  Repeal the estate tax, which affects only about 0.2 percent of estates — that is those worth above $5.45 million.
7.  Middle-income earners as a whole would have a small tax cut: taking into account the increases on single-parent families, those earning nearly $50,000 to about $83,000 — the middle one-fifth — would receive an average cut of $1,010, according to the Tax Policy Center lifting their after-tax incomes by a mere 1.8 percent.
8.  By contrast, the wealthiest 1 percent — those earning over $700,000 — would enjoy a tax cut averaging nearly $215,000, boosting their after-tax incomes a whopping 13.5 percent.
9.  The very rich: 0.1 percent of the population — that is earning above $3.7 million — would receive a bonanza: A tax cut exceeding $1 million.
10.  For low-to-moderate income single parents (i.e., a working Mom or Dad), they are going to get hurt and hurt badly.

The tax hikes that would hit single parents and large families would result from his plan to eliminate the personal exemption and the head-of-household filing status – two features of the tax code that have enabled millions of Americans to reduce their taxable income. 

His other tax changes would benefit middle- and lower-income Americans for sure, but they wouldn't be enough to offset those modifications going to the top 1%.

Unlike Trump's other proposals like for immigration and building the wall, or cancelling trade deals for new ones, his tax plan is in line with traditional Republican policy that steep tax cuts for the top closely resemble those put forth by Ronald Reagan and George W. Bush and all Republican-run Congresses and here we are again – same dynamics with Trump’s tax proposal. 

So, I say at this point: “They’re baaack…!!!”

During the campaign, Trump said his tax cuts — for individuals and companies — would energize the economy by boosting business investment in factories and equipment, while leaving consumers with more cash to spend and create 25 million jobs over the next decade.

Further, estimates show that roughly 7.9 million families with children would pay higher taxes. Some 5.8 million of those families are led by a single parent. An additional 2.1 million are married couples. Analysts from the conservative Tax Foundation and American Enterprise Institute both agree with these conclusions.

For all Trump voters (vast majority in the low-to-middle class brackets discussed in the Trump tax plan): You have been had…!!!

So, from here on out, HANG ON TIGHT…!!!

Nevertheless, thanks and stopping by. Oh, yeah and for those who did, thanks for voting to Make America Suffer Again.”

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