Jump to content

The tax cut isn’t trickling down and it’s hurting the economy


Recommended Posts

Author from a progressive think tank sounding the alarm using cherry picked stats.  Hmm...

This author is one of those disingenuous types who thinks the 1%ers all have big vaults of money they swim in like Scrooge McDuck.

  • Like 1
Link to comment
Share on other sites

No, The Trump Tax Cuts Did Not All Go To “The Rich”

 

download-1024x555.jpg
 

It’s inevitable in any debate over tax cuts that you’ll run into the cliche that they’re only “for the rich,” and that’s certainly been the case when it comes to Donald Trump’s recent tax reform package. 

Such an argument can be made against any across-the-board tax cut, even when lower income brackets are cut more than top income tax brackets. After all, a 1% tax cut is going to save a millionaire more money than a 50% tax cut is going to save for a poor person, even if the poor person benefits more relative to their current wealth.

The Trump tax cuts composed of both corporate tax reform (cutting the corporate tax rate from 35% to 21%), and across the board cuts to individual income tax brackets. Below is the percentage point decline for each bracket. Also note that $5,650 increase in the standard deduction. 

2018vs2017rates.jpg

Claims that the Trump tax cuts go mostly to the “top 1%” are commonplace. Democratic Policy and Communications Committee co-chair David Cicilline claims that “80%” of the Trump tax cuts go to “corporations and the top 1%.” Nancy Pelosi has claimed that 83% of the Trump tax cuts went to the top 1%.

A more useful way to analyze the Trump tax cuts is so look at how they benefit each income quintile relative to how much of the tax burden they shouldered before the cuts. Before the Trump tax cuts, the bottom 80% of income earners paid roughly 33% of all federal income taxes, but received 35% of the benefits from the Trump tax cuts. The top 1% paid 27% of all federal taxes, and received only 21% of the tax cut, according to the center-left Tax Policy Center.  

The Tax Policy Center found that more than 80 percent of taxpayers recieved a tax cut, with less than five percent receiving a tax increase. The five percent who saw increases were mostly wealthy people in coastal States who had their write-offs for mortgage interest and for state and local taxes capped. The average cut in taxes was $1,600. An analysis by the center-right Tax Policy Center in 2018 yielded almost identical results when it came to the share paid by earners; that the top 1 percent of income earners would glean 20.5% of the tax cut benefits.

So, the top 1% are not receiving 80% or 83% of the benefits, they’re receiving roughly 21%. However, there actually is some slight truth to Cicilline and Pelosi’s claims, but only in one scenario, and they’re to blame for it.  What Cicilline and Pelosi didn’t mention is that they’re specifically speaking about the year 2027, when the individual income tax cuts expire, and thus the majority of the benefits shift to corporations (whose reduced tax rates remain unchanged). 

No shortage of Democrats have criticized the Trump tax cuts for keeping the corporate tax cuts in effect after 10 years while having the individual tax cuts be temporary.

But there’s a simple fix, isn’t there? Simply pass legislation to make the individual cuts permanent. 

Ted Cruz got the memo, and introduced legislation in January to make the individual cuts permanent, but to little surprise, he didn’t find any Democrat takers.

As recently as late September, the House passed a bill to make the Trump tax cuts for individuals permanent. Again, Democrats were hardly enthused by the bill. It seems like they’d rather create a scenario where 80% of the Trump tax cuts go to the top 1%, just so they can use that as an excuse to justify raising taxes on everyone.

Link to comment
Share on other sites

53 minutes ago, Matt said:

Author from a progressive think tank sounding the alarm using cherry picked stats.  Hmm...

This author is one of those disingenuous types who thinks the 1%ers all have big vaults of money they swim in like Scrooge McDuck.

New guy gets it!

Also, spoiler alert:  MC is a fucking idiot beyond a measure I've ever come across.

Link to comment
Share on other sites

19 minutes ago, Zambroski said:

New guy gets it!

Also, spoiler alert:  MC is a fucking idiot beyond a measure I've ever come across.

Thanks, though I'm not exactly a new guy.  Been on the sled innerwebs since 1996 or so.  More of a prodigal son type, and I know MC, and AFJ, and Momo, and Slinger, and the woolard (anyone remember when he was SRXFreak on the original WebBBS-powered sledding.com?), and the whole bunch of ass clowns that make this site and its ilk such a great time suck...  :)

Edited by Matt
  • Thanks 1
Link to comment
Share on other sites

3 minutes ago, Matt said:

Thanks, though I'm not exactly a new guy.  Been on the sled innerwebs since 1996 or so.  More of a prodigal son type, and I know MC, and AFJ, and Momo, and Slinger, and the woolard (anyone remember when he was SRXFreak on the original WebBBS-powered sledding.com?), and the whole bunch of ass clowns that make this site and its ilk such a great time suck...  :)

:lol: 

:bc:

 

Link to comment
Share on other sites

1 hour ago, Snoslinger said:

:lol:

Fat bonus this year, profits are up. Need to buy another car, do some fix up around the house a bit. Might even snow check a new sled. Probably get a bigger tax return this year. Look at all that dough going back into the economy. 

:news:

 

Link to comment
Share on other sites

  • Platinum Contributing Member
2 hours ago, Zambroski said:

New guy gets it!

Also, spoiler alert:  MC is a fucking idiot beyond a measure I've ever come across.

New guy....just go get me some cheese curds from Culver's and make it fast Spider!

 

Edited by Jimmy Snacks
Link to comment
Share on other sites

27 minutes ago, f7ben said:

The tax cut is going to put $3500 back in my pocket this year. I'm not saying that's good or bad...but it's a big cut for middle class guys like me 

You can buy 2 more Arctic cats with it! 

 

 

Faggot!!!!111

Link to comment
Share on other sites

1 hour ago, Jimmy Snacks said:

New guy....just go get me some cheese curds from Culver's and make it fast Spider!

 

:lol: FUCK CULVERS!!!!!!

1 hour ago, f7ben said:

The tax cut is going to put $3500 back in my pocket this year. I'm not saying that's good or bad...but it's a big cut for middle class guys like me 

 

29 minutes ago, racer254 said:

The company I work for was able to change their PTO, I got 2 extra days off and many others with less time actually got even more. 

Thanks Obama!!!!!

Link to comment
Share on other sites

5 hours ago, Zambroski said:

New guy gets it!

Also, spoiler alert:  MC is a fucking idiot beyond a measure I've ever come across.

Matt goes back long time!

4 hours ago, Matt said:

Thanks, though I'm not exactly a new guy.  Been on the sled innerwebs since 1996 or so.  More of a prodigal son type, and I know MC, and AFJ, and Momo, and Slinger, and the woolard (anyone remember when he was SRXFreak on the original WebBBS-powered sledding.com?), and the whole bunch of ass clowns that make this site and its ilk such a great time suck...  :)

I remember when you were just a wee lad. Hung out and rode with AFJ occasionally back when you were both pretty hardcore.  Now you’re all gown up and married, traveling the world.  Over 20 years my friend.  :bc: 

2 hours ago, Cold War said:

I swear,  some of these guys would cut their dick off with a rusty butter knife if they thought it would make Trump look bad.  

No kidding. It’s gotten so fucking tedious.  :bc: 

  • Like 1
Link to comment
Share on other sites

  • Platinum Contributing Member
11 hours ago, Edmo said:

Fat bonus this year, profits are up. Need to buy another car, do some fix up around the house a bit. Might even snow check a new sled. Probably get a bigger tax return this year. Look at all that dough going back into the economy. 

:news:

 

Be careful with that mindset as the boost in your check does come from the tax cut but it also comes from your return. Most will see a smaller return.

Link to comment
Share on other sites

12 hours ago, f7ben said:

The tax cut is going to put $3500 back in my pocket this year. I'm not saying that's good or bad...but it's a big cut for middle class guys like me 

Have you seen the new tax structure?

Link to comment
Share on other sites

15 hours ago, Zambroski said:

New guy gets it!

Also, spoiler alert:  MC is a fucking idiot beyond a measure I've ever come across.

Actually a true full blown idiot is being a moderator on HCS.

Thats pretty much solid proof 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Trying to pay the bills, lol



×
×
  • Create New...