If Donald Trump thinks the American people will support his tax reform plan now he’s crazy.
So far, Congress hasn’t really been able to work on passing a tax reform bill for Trump to sign because he keeps demanding that they waste all their time failing to strip healthcare from millions of Americans.
For months, Republicans in the House and Senate have tried to repeal Obamacare and have gotten nowhere, and it looks like Senate Republicans are going to try again.
House Speaker Paul Ryan, meanwhile, wants to move forward with Trump’s tax plan and promised that Republicans would crush the middle class and the poor in the process by using a dirty budget trick known as dynamic scoring to dupe people into believing that cutting taxes for corporations and the wealthy will benefit the economy across the board. In other words, trickle-down economics on steroids.
Trump’s plan would literally cut corporate taxes in half down to 15 percent, and the Tax Policy Center estimates that Trump’s plan would result in a $2 trillion loss over ten years.
Keep in mind, the budget deficit that used to be $1 trillion after George W. Bush left office was reduced significantly by President Obama. Trump’s tax plan would erase all of that progress and make the deficit even worse.
Trump and Republicans argue that passing tax cuts for corporations will somehow magically turn America’s economy into a roaring engine where GDP will grow about 3 percent a year, something that hasn’t happened since the presidency of Bill Clinton, which just happened to occur after tax increases signed by both George H.W. Bush and himself.
Currently, the corporate tax rate in this country stands at 35 percent. A cut to 15 percent would make our corporate tax rate one of the lowest rates in the world. And that’s a huge loss of tax revenue that America needs to pay down the national debt and the deficit and fund domestic needs such as infrastructure.
Trump thinks that corporations need a tax cut to thrive, but his latest tweet demonstrates that his tax cut is all about making rich people like himself even richer.
“Corporations have NEVER made as much money as they are making now.” Thank you Stuart Varney @foxandfriends Jobs are starting to roar,watch!
— Donald J. Trump (@realDonaldTrump) August 1, 2017
That’s right. Trump just sabotaged his own tax plan by bragging about how much money corporations are making right now. And considering that corporations use loopholes to pay less than 35 percent, cutting the rate to 15 percent will let corporations whittle their actual tax payments down to hardly anything at all. Corporations already hide profits overseas to avoid taxation. Trump’s tax cut would let them hide even more money. That’s bad for America because it takes away tax revenues the government needs to pay for things and it puts the heavier burden of taxation on the rest of us. Trump’s boast makes it clear that cutting corporate taxes is not necessary and would actually be unfair. Corporations can easily afford to pay the current tax rate. What really needs to be done is closing tax loopholes in order to make sure corporations pay their fair share in full.
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