Saturday, November 18, 2017

Tax Scam

Most of the individual and Middle Class cuts are only temporary and will be phased out within 10 years.  The corporate tax cuts are set to be permanent.
Watch this, especially the first 12 minutes where they talk about the GOP tax plan.
Some middle class people will pay more, others less in taxes for the first few years but the majority of lower and middle class Americans will pay more as the individual tax cuts expire.
Also insurance and tuition will go up and major cuts to Social Security, Medicare and Medicaid will impact many families.
Why cut taxes to corporations, millionaires and real estate moguls? Big donor money.
Will tax cuts to corporations increase jobs and wages as the GOP says? History says no. They will buy back stock, lower their debt, pay dividends and executive bonuses, and merge with other companies to reduce competition.  Corporations have been doing historically well and making more money than ever and have access to cheap capital.  Instead of job growth we will see lay offs due to mergers and consolidation and deregulation.  Wages will remain stagnant or continue to drop when compared to inflation as nothing in this tax plan requires or even encourages wage hikes.  Between increased automation and less competition in fact they have fewer reasons to increase wages and many of the larger companies will lay people off.  Smaller businesses will face stiffer competition from the big companies who can take better advantage of the tax cuts and cheaper loans.

This is something I havent heard a lot on the news...
The AMT or individual minimum tax is repealed for individuals (that gets talked about) but also for BUSINESS so it will be possible for companies through loopholes to pay NO INCOME tax at all!
And why does the corporate tax rate need to be lower than many individuals?

Note This!

  • Expiring Provisions: All individual income tax changes, excluding the move to Chained CPI and the elimination of the individual mandate penalty, would expire effective December 31, 2025. This includes the individual income tax rate cuts, the expanded child tax credit, the repeal of personal exemptions, and the expanded standard deduction.

Frankly if they really wanted to increase your effective income it would be much better to raise the minimum wage which would spread out to everyone getting a wage increase. We would have more income, pay more in taxes because we make more but still have more in our pocket!
That would even lower the national debt instead of increasing it!!
More money in the general economy also leads to job growth as people spend more and companies can then sell more.

2004 Bush Taxcut to  bring money back to the USA resulted in massive stock buybacks and layoffs.

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