How Taxing

Donald Trump wants to change the tax code and accomplish something that so far has eluded him, a legislative victory. Our tax code absolutely needs serious reform but preliminary indicators suggest that's not what this is.

Trump insists that the rich, including himself, will not benefit from the changes he and the Republicans are proposing. So we begin with a lie, how then do we trust anything else in the legislation? The old drum is once again beating it's favorite tune, the elimination of the estate tax. Currently for an individual the first 5.49 million dollars is exempted from this tax which means for most people this is never a factor. The argument for repeal of the estate tax has always been about the family farm and small business owners, it is a false argument. There are no real small businesses or family farms worth more than the exempted amount. Let's, just for the hell of it, act like it's true. The tax, which is 40%, doesn't kick in until after the exempted amount. The elimination of the estate tax is strictly about giving a giant tax break to the rich, including Donald Trump. It is intended to guarantee the dynastic expansion of the plutocracy.

Trump wants to eliminate the seven bracket income tax and replace it with three. The current brackets are, 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. The proposed change is 12%, 25% and 35%. You will note the lowest rate increases by 2% on those who can least afford it. It has been suggested that an individual making under $24,000.00 would be exempt from federal income tax, maybe but I doubt that will be the final legislation. There is no discussion at all concerning payroll taxes, which is the biggest area that effects standard wage earners.

The statisticians, private and government, tell us that American Corporations have six trillion dollars in foreign banks because our corporate tax rate is the highest in the world at 35%, so the proposed reduction is to 20%. We have repeatedly been told by politicians, mostly Republican, that all we have to do is lower the rate and they won't do that anymore and more importantly that six trillion will immediately be repatriated to the U.S. because in addition to the lowered tax rate going forward, we'll cut them a break on all that money flowing back in. Now, this is the exciting part, those corporations will immediately flood the country with that previously withheld money, investing in building new structures, hiring tons of people and shining the radiance of their economic majesty across the land. Bullshit. First of all the major corporations of this country pay little to nothing in taxes courtesy of our bloated expertly manipulated code. Trump and friends are giving only minor details on going after those loopholes. Concealing assets to avoid paying taxes is a crime so if Our government knows that six trillion in untaxed American dollars is sitting in foreign banks why aren't those American corporations being prosecuted for tax fraud? Why is our government not going after those foreign banks, all of whom operate in countries we have established treaties? Face it, these Americans aren't going to park their money in Somalia. I have no objections to lowering the corporate tax rate, so long as it simultaneously involves the verifiable gutting of the loopholes and removal of all lobbyists from the process.

As best as can be assessed at this time, we are looking at a proposal that will give the largest tax break to the rich in our history, add two trillion dollars to the national debt and do nothing to help the working poor and middle class. In fact taxes will be raised on many middle-class households. As Donald Trump's top economic advisor has admitted, he cannot "guarantee" that there won't be middle-class persons who see an increase in their taxes.

But I can guarantee you, no rich person will have an increase. They will continue to enjoy an ever-growing dominance over the majority of wealth in our country.