A look at the tax cut plan
To the editor:
Today I will be, for the most part, passing over extremely relevant important issues in order to focus on one issue that is especially important and intensely time sensitive.
Just as a reminder, I will be scarcely mentioning the following: President Trump’s conspiring with Russia, his money laundering and other criminal activity, his treatment of women and his constant and consistent lying.
I almost forgot his plan to destroy net neutrality so that corporations and the extremely wealthy can dominate the Internet.
Now, to deal with Trump’s and the Republican’s deceptive tax reform measures and how they will hurt the poor and the middle class.
The plan they are calling a tax cut will indeed cut taxes for the wealthiest Americans, but will cut a lower percentage for those with middle incomes.
Let’s see some examples: The elimination of the estate tax. This is the tax paid by the estate when the taxpayer dies. This tax is only paid when the estate is valued at more than $5 million. It’s only paid by the top 1 percent.
Then there’s the claim that U.S. corporations are the highest taxed in the world. It’s simply not true. As a percentage of the GDP, the U.S. is 51st, at 26 percent. Most corporations already don’t pay the highest rate — they pay the effective rate of 19.4 percent.
The way this plan actually works is that 40 percent of tax savings would go to the top 1 percent of taxpayers, and 80 percent of the tax savings would go to the top 10 percent of taxpayers. That leaves 20 percent for the rest of us.
By the time this all washes out in the future, 50 percent of us will actually be paying higher taxes. What 50 percent would you expect that to be — the top or the bottom?
Trickle down, or what’s known as supply side economics, just doesn’t work and has been proven not to work. I was always taught the concept of supply and demand. This equation just doesn’t work if you were to ignore one side of that equation. Supply side doesn’t work independently of demand. If you have a demand for 300 widgets, you’re just not going to able to sell 2 million of them that you have manufactured. It just doesn’t work that way. It’s not how any of this works.
Don’t believe me? Ask David Stockman, Ronald Reagan’s former director of the office of management and budget. Google it. He says that the plan is a pipe dream.
Not convinced yet? Then consider this one final thought: Carrying out this plan would require them to take $25 billion from Medicare. Do you want them to take $25 billion of the money you paid into Medicare in order to give tax breaks to the top 10 percent of earners. I, for one, would rather it be left in my health care.