The scheme is all about transferring trillions of dollars more wealth from ordinary Americans to super-rich ones than already.
It’ll add $10 trillion dollars to the national debt by 2027 in a recession-free environment for the next decade, according to David Stockman, much more under long-overdue hard times during this period.
If enacted, it’ll do nothing to stimulate economic growth and create jobs. Trump lied claiming otherwise.
According to the Tax Policy Center (TPC), the largest proposed tax cut in US history “being considered by the House Ways & Means Committee would provide a modest average income tax reduction in 2018 and an even smaller average tax cut in a decade, after key provisions are scheduled to expire.”
Many US households would get nothing, others a tax increase, the plan rigged to benefit corporate giants and the nation’s super-rich at the expense of most others.
“About 7 percent of households would pay higher income taxes in 2018 and one-quarter would face a tax increase in 2027,” said TPC.
Super-rich households and corporations would benefit most. Middle-income consumers would see a modest benefit next year, America’s 1% a bonanza, an average tax cut of $37,000.
Households earning $732,000 or more would pay about $64,000 less in taxes on average.
By 2027, nearly one-third of middle-income households would pay $1,150 more in taxes on average.
“Among the top 1 percent, two-thirds would pay an average of $123,000 less, and one-third would pay an average of $62,000 more” in 2027, said TPC.
Many 2018 tax reductions would disappear over time, TPC explained, “in part because some are scheduled to expire in five years, and in part because much of the individual income tax code would be indexed for inflation using a less generous formula than today” – called chain-weighted CPI, an artificially lowered number unrelated to reality.
It assumes when prices on some products rise, consumers choose lower-cost substitutes. Perhaps for steak v. hamburger.
It doesn’t hold for rents, other housing costs, transportation, gasoline, electricity and other energy costs, as well as for medical expenses.
Chain-weighted CPI “would push more people into higher tax brackets and lower the value of some tax benefits such as the Earned Income Tax Credit,” TPC explained, adding:
“While many high-income households would pay income tax rates that are at least as high as under current law (and in some cases higher), they would be the big beneficiaries of the bill’s proposed business tax cuts – both for corporations and for pass-throughs such as partnerships.”
The House GOP tax bill under consideration will assure higher taxes for many US households ahead, not the “middle class miracle” Trump promised.
According to David Stockman, “once the beltway swindlers and racketeers were accommodated, there was no room for a meaningful middle class tax cut. Period.”