The tax paying citizens of the United States have once again been shafted as a result of President Trump and his Republican Party into putting forward alleged tax cuts in the form of Tax Cuts and Jobs Act put into effect December 2017. Here are the reasons this is a shame upon the president and his Republican Party:
- The really rich, plutocracy class, gains the most and the low and middle class get way less. By giving tax cuts to all citizens, it appears to be a win for all. That is just a smoke screen to hide what is real. The typical citizen does not have the time to look behind this dark curtain and try to analyze the complexity of it all. Making this legislation rather complex is the means of hiding the reality. The chart below shows the tax “cuts” now and then what will happen in the future.
Source for graphic
- The tax “cuts’ benefit Trump’s Republican Party if you live in a state which voted for Trump. “In 22 of the 30 states Trump won, a higher percentage of households are expected to have lower income taxes than the national average.”
- SALT (State And Local Taxes) Deduction — the amount of your state and local taxes that you can deduct from your federal income taxes—is now capped at $10,000. So, for people who pay a lot of state and local taxes, that is going to cost them money.” Here is a short list of states affected:
- New Jersey
- New York.
Note that the above list of states are Democratic. Democratic states are typically richer and pay more taxes thus penalized more with this tax “cut”.
- The home mortgage interest deduction was also capped. Is this a political calculation? You bet it is. Studies have proven that Republican controlled states that are poorer when compared to Democratic controlled states.
- The resulting deficits will add $1 to $2 trillion to the federal debt, according to official estimates. The debt increase will be larger if some of TCJA’s temporary tax cuts are extended. “Absent dramatic spending cuts, the public debt will continue to grow faster than the economy.”
- How does the President attempt to pay for this huge increase in the deficit? He wants to starting by cutting Medicare and Medicaid for low-income citizens which might save $200 billion. But, President Trump made a campaign promise, during his 2016 presidential bid, not to cut the popular Medicare, Medicaid and Social Security programs.
Summary: Allegedly, this whole process was put together to hide the real intent to give the plutocracy class, the very rich, vast amount of tax break money. “TCJA will, under the most plausible scenarios, end up making most households worse off than if it had not been enacted.”