Monday , November 27, 2017 - 7:00 AM4 comments
The poor and middle class are on track to be exposed to the greatest tax fraud in many years. Donald Trump and the Republican leadership have repeatedly said their reform proposal is focused primarily on tax cuts for the middle class. To most tax experts it’s nothing of the sort. It’s a clever disguise designed to hide the fact it is a massive tax cut for corporations and the super rich, including Trump himself.
Many experts cite evidence that most corporate tax cuts go primarily to stockholders and greater profits for corporations. No one believes that the benefits of the tax cuts will be handed over to the workers. Most economists have already predicted they will be little effect on raising the income of the working classes. According to the Center for American Progress, many middle-class and working families will see tax increases because the plan calls for decreasing and finally eliminating the tax deductions and credits on which these families rely.
Sole proprietorships, partnerships, and S-corporations, which constitute 95 percent of all businesses, who have been taxed at a top marginal rate of 39.6 percent, will have their rates slashed to 25 percent. The reductions in the tax liability of these businesses could substantially reduce government revenue, and contribute to a deficit already projected to be $440 billion for 2018.
Trump has already stated that the individual mandate will be eliminated. It essentially kills Obamacare, something that Republicans could not do before. It removes health care for 15 million people and redistributes up to $300 billion to help pay for a Republican tax cut primarily for the rich. This after Trump repeatedly stated the tax cut is primarily for the middle class and he will not be benefited by it. He absolutely will.
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