The Democreeps and the media (is there a difference) want to see the Trump tax bill never become law. They are constantly saying it is a sham. And, of course, they have been in love with the “phrase that pays,” IT IS A TAX CUT FOR THE RICH for as long as I can remember. Democreeps never tire of that one! The Democreeps are “for the little guy” and the “tax cuts” are for “the big guy.”
Below are four charts using Americans from vastly different income settings as calculated by the Heritage Foundation. They calculate the change in taxes if the House version passes versus the Senate version. Can anyone say these are “tax cuts for the rich?” Can anyone claim the “middle class was left out so that the rich can get more?” You decide.
First is an Asian American teacher earning $50,000 annually, The median income in the US is $59,000 – so Mr. Wong is below the median. He is single, doesn’t own or home and is not a business owner.
Mr. Wong gets a 2% “bump” in pay. When one considers that following the recession in 2008, average wages fell almost consistently in real terms until mid-2014 and they are still not back to their pre-recession levels. So 2% is more than he got during the entire Obama “recovery!” Of course, as a portion of his actual federal taxes it is probably around a 13-15% tax reduction.
Next is Jones family. They are clearly well entrenched in “the middle class.” Mr. Trump has vowed to help these Americans. Is he a liar? The Jones’s both have jobs (Democreeps should want their constituents to have jobs instead of welfare checks). They own their own home.The Jones’s certainly would like the Senate version to pass. That would be a 3% bump in spendable income, but, more importantly it is a 30 – 60% decrease in their federal taxes (see footnote for the average tax burden of a family like the Jones’s). If that is not TAX RELIEF for the middle class I would certainly like to hear the Democreeps definition!
Third we have the Hispanic-American Fernandez family that is clearly in the upper class. They are small business owners and are solidly in the fourth quintile of taxpayers.
The Fernandez’s would pay in the range of 19-23% of their taxable income in taxes (footnote 2). The Fernandez family definitely wants the Senate version to pass (unless they are “altruists” and love to pay taxes “because it’s NICE”). But, note that the House version results in an increase in taxes – hardly a tax cut for the rich. The Senate version treats small business owners much better. The Small Business Association considers firms with fewer than 500 employees small, placing nearly every business in the country (99.7 percent of firms that have employees) under that umbrella term. Far and away they employ the most workers. So is cutting their tax burden a “good idea” or “bad idea?”
And, finally, we have a wealthy mixed-race American family, the Smiths. The Smith family is RICH. There’s no getting around that. People and households earning $1 million or more annually made up just 0.1 percent, or just over 235,000, of the 140 million tax returns filed in 2009 (hard to get more recent data).
Well, there is no doubt that the Smiths very much would like the Senate version to pass. But, if one considers that people in their tax bracket pay 29% on average in taxes, even the Senate savings is a pittance and the House version is anything but a TAX CUT FOR THE RICH!
The Democreep argument is totally fallacious. And, by the by, I keep looking for the Democreep alternative tax plan and, guess what? IT DOESN’T EXIST! It’s been more than a decade since any Democreep congressional leader has authored a tax reform plan!
Footnote 1 (see reference):
Footnote 2 (see reference):