Let’s talk about Trump’s tax plan | Trump
There’s some good news.
Here is some reality-based analysis. Normally, anybody on the right, and especially in right-wing think tanks, is in favour of any tax cut. That’s what right-wing think tanks exist for. Yet, with regards to bringing back overseas money at a super low tax rate, the Heritage Foundation has said in 2011 that such a move, “would, like its predecessor, have a minuscule effect on domestic investment and thus have a minuscule effect on the US economy and job creation”.
The last, and only, such tax reparation even demanded specific pledges about using the money for real domestic investment that would create jobs. Forbes (who used to cheerfully call itself a “capitalist tool”), wrote that “58 companies, which accounted for almost 70 percent of all funds repatriated, slashed nearly 600,000 jobs while saving an estimated $64 billion in taxes”. Anyone who looks can find that out. What’s fresh is that reality is being reported across ideological lines. Though not across party lines.
Looking at the bigger issue, a wide variety of commentators are actually saying that there is “no evidence” or “little evidence” that tax cuts for the rich lead to the positive effects that are promised, growth in the real economy, more jobs, and better wages.
That’s based on evidence from reality. As such it should be highly praised, even though it’s only partway there, like looking out the window at the weather but not flinging open the door and walking out into reality.
Here’s the full step. There have been five major tax cuts in the last hundred years. All of them have favoured the rich. One of them, in the 1960s, was simultaneous with the launch of Lyndon Johnson’s Great Society and the Vietnam War, so there was vast spending that pushed the other way. The other four were followed by great increases in wealth inequality, bubbles, crashes, recessions or a depression (different only by degree, not kind). Three of those four included massive bank failures.
Trump’s plan is advertised – mostly by Trump – as great for the middle class.
Does anyone remember Mitt Romney?
Mitt divided America into “makers and takers”. Makers paid Federal Income Tax. Takers were the 47 percent who didn’t.
It is true that about that many people don’t pay Federal income tax. Then comes the sleight of hand. Drop “Federal” and “income,” and say nearly half of Americans don’t pay “taxes”. Mitt, his friends, and supporters said that a lot.
It’s not true.