Tag Archives: the one-percent

Three Reasons Why The Republican Tax Plan is a Hoax

 

Republicans are at it again. More accurately, they have never stopped. The hoax was first perpetrated on the middle class in the 1980s. We were told that if we let the Republicans cut taxes on the ‘job creators’ (the Rich) that this would make us all better off. It never happened. If you look at the data since 1980 all that has happened is that inequality has grown exponentially, and so has the national debt. Those are the facts.

 

 

And yet, they have regurgitated these old arguments in new language. Corporations are making record profits, and still we are told that if we cut corporate tax from 35 to 20% they will create jobs. Why are they not creating them now? Again, they have record profits. The reason we don’t have more economic growth in this country is that the middle class and working poor don’t have enough discretionary spending power. Seventy percent of the American economy is based on consumer spending. If we don’t have enough money left over at the end of the month, from paying rent, bills, food, and health care then we cannot afford to grow the economy.

The Republicans will tell you that their tax ‘reform’ package will generate growth. And that it will save the average family $1000 a year—we are too smart for this. The word “average” means that if I cut taxes on ten percent of the people by $10,000 and the rest by zero—then the average is $1000 per person.

There is one more reason why this whole plan is a hoax, and it goes all the way back to Reagan. In the 1980s they cut everyone’s taxes. But then bit-by-bit they raised taxes back on the middle class, but taxes on the wealthy never went back up to where they were.

The reason why Trump loves this tax cut bill is that it will eliminate estate taxes. It will also eliminate the Alternative Minimum Tax, both of which only affect the richest one-percent.  Billionaires will profit greatly from this tax cut and the middle class and working poor will get screwed once again. The ironic tragedy in all of this is that the working-class Trump supporters will support this bill simply because Trump supports it. They will get screwed, but so will a great many other people.

The Small Business Association* doesn’t support this bill because it really does nothing for small businesses. But the Republicans will push it through with their “small business” battle cry. Once again, their rhetoric doesn’t match the reality.

And the Republicans who screamed about the national debt during the Obama administration? They are ominously silent. They only care about the debt when it is helping the poor. When it comes to cutting taxes for the rich, to hell with the debt–blame the Democrats.

How to fight back against this? The same way we fought back against the repeal of the Affordable Care Act—bring demonstrators into the Capitol and shame enough Senators into backing off. Flood your Congressman and Senator with calls and letters. Resist.