After a long absence from my blog, the two proposed Congressional “Trump” Tax Plans compel me to call for your help. President Trump promised a “miracle for the middle class” with his tax plan. The only miracle I see with the proposed House and Senate plans is that many of us will pay a few thousand dollars more in taxes and in turn we get a $1.5 trillion dollar deficit while the wealthy (including Trump) get a massive tax cut.
The talking points being used to sell us (scam us) on this plan are ridiculous. One is that we can do our taxes on a post card. Of course, they forget to mention that there are pages of worksheets not shown that will be required to get to the few numbers on the post card. Already, for most working class Americans, the 1040 EZ is virtually a post card and the IRS will figure your taxes for you for free. And for those of us that itemize, Schedule A is little more than a checklist to make sure we don’t cheat ourselves out of a deduction. Even the long form 1040 is simple with most lines not used by many Americans. Further, does anyone really want to file on a postcard where all of your personal information is out there for anyone to view? I think not.
Another talking point is the alleged simplification by going from seven to three tax brackets. Give me a break. When was the last time you sat down with paper and pencil to figure your taxes using the brackets? Most of us don’t even know what bracket we are in. You either use the tax tables provided by the IRS or you use a computer. The number of brackets is meaningless.
Lastly is the claim that the corporate tax rate will be cut from 35% to 20% will result in money raining down across America that will cause jobs to sprout up like mushrooms in shit rich soil. About 40% of the corporations pay zero taxes anyway and only the really dumb ones pay anywhere close to the 35% rate.
Now I do not have a great problem with cutting the corporate tax rate as long as most of the corporate tax breaks, loop holes and corporate welfare programs are stopped. It is only fair to reduce the rate if corporations actually pay their fair share of taxes for all the services they get from our government. But the proposed legislation does little to end the most egregious corporate loop holes and actually opens many more tax loop holes for businesses.
We have experimented with so called trickledown economics for the last fifty years and we have had the lowest tax rates in our recent history for many years now. Have we seen the jobs and growth in GDP sprouting around us? Not so much. When will we realize that the economy is driven by demand and not by supply? When the average low and middle class person has money, they will spend it and that spending creates growth. The average wealthy person changes their spending little when rewarded with a massive tax break. Trickle down is a myth.
But let’s get back to personal taxes. The proposed tax bills eliminate many of the deductions for middle class wage earning taxpayers that corporations will still enjoy. For example, if a teacher needs to buy paper and pencils for her students, she will no longer be able to get a deduction. But a corporation can still deduct any purchases they deem related to their business including fancy lunches and corporate jets.
We will no longer be able to deduct medical expenses to keep our bodies in working condition so that we can earn a living for our family but a corporation can deduct all expenses for maintaining the plant and equipment they use to make a profit.
We will no longer be able to deduct the sales taxes we pay on the car we need to get back and forth to work but a corporation can deduct all of the sales taxes they pay in the course of doing business.
We will no longer be able to deduct the property taxes on that car or on the home for ourselves and our family so that we can be well rested and productive when we report to work but the corporations can deduct property taxes they pay and even get us to pay for having them relocate in our community by forgiving them of taxes for many years with TIF and other taxpayer subsidies.
We will be limited on the interest we can deduct for the purchase of our homes to shelter ourselves and our families but the corporations can deduct all their interest expenses. And Trump breaks one of his promises by not addressing the carried interest and pass-through deductions by the likes of hedge fund managers.
A corporation can continue to deduct all of their insurance expenses while working individuals have to choose between food and health care coverage by not being allowed to deduct some of the basic necessities of life.
Trump made many promises and has yet to fulfill any of the major reasons people voted for him. He needs to get off of his ass and start leading and demanding Congress to fulfill those specific promises. Instead he seems to only be sitting on the sideline tossing out Tweets and obscuring the fact that the Congress is coming up with legislation that is not in keeping with his Populist promises. Very disappointing.
It is time to stop the charade. Call and write your Senators and Representatives telling them that you will fire every one of them unless we see real tax reform. Reform that fairly taxes corporations, eliminates all corporate loopholes and cuts government subsidies to corporations. Reform that taxes wealthy individuals at a level that does not result in them paying a lower effective tax rate than our hard working, wage earning American families. Only in this way will we make America Even Greater and restore true prosperity and opportunity to all Americans.
Calling your Senator and Representative is probably the most effective. Go to town halls if your elected official has the courage to stand in front of you. Sending an email is also somewhat effective. Social media and Tweets are the least effective unless you have lots of followers. Find your Senators or Representatives number by using
https://www.callmycongress.com/
Roger That! 