The middle class is NOT getting tax relief. But first lets talk about this nonsense of companies coming back.
Reducing the corporate tax rate from 35% to 20% will not do much. Companies already use write offs to reduce their taxes to near zero. Amazon never showed a net profit for many years. GE never owes taxes. When you combine it with the lower human capital costs for working with slave nation China, there is still not enough incentive to bring factories back.
This is why we have long proposed a 10% security fee on all imports, and another 10% on slave labor nations. That would go much further into increasing costs for offshoring and making the corporate decision tougher. They would still be able to produce much cheaper offshore but when you add in the risk, the 20% additional cost might swing it back to America. It’s something we should play with.
What is really needed is a MINIMUM TAX for LARGE BUSINESS. Make it as low as 5% it will bring in huge revenue from big fat cats who pay NO TAX! Any company which has over 50M in sales would have to evaluate against the minimum tax.
One good thing in the tax code is so many special deductions and favors will finally be wiped out. Including tax breaks for rich oil and sports companies. It’s about time.
OK now let’s get back to the middle class and the tax cut. what does it mean? Well they talk about increasing the standard deduction and the number of brackets. Overall, it’s a wash. Some people especially the lower middle will get about a 5k a year break while the upper middle may end up paying more! Because middle class owners with a bouse already have a lot of deductions exceeding the standard, the new system makes them about the same, so it’s a wash. Just a different way of doing business.
Where are the specifics? Can you apply interest deductions on TOP of the standard deduction? Yes or No? Probably NO
At what income level does the rate go from 12 to 25% ? This is a key issue. We have no answer because they are playing with it. And they will set it so that there is NOT a reduction in a revenue. That means, do NOT EXPECT lower taxes.
This is really terrible. They found 23,000,000,000,000 for the rich bankers. But they can’t find a penny for the distraught middle class. Ridiculous.
Trump wanted a 15% or a 18% corporate rate. Having it come out the gate at 20% shows just how much they have beaten down the tax plan. Worse, small business has to pay MORE – 25%! Why! This is outrageous. Small business is the MAJOR SOURCE OF NEW JOBS. This is direct penalization of the middle class small business owner.
Overall, it’s a lot of bluster without much substance. There IS NO MIDDLE TAX RELIEF IN THIS BILL
Don’t let them get away with this crap bill which is a screw job, a stinking turd wrapped in shiny gold leaf. They might tell you it’s going to taste good, but that first bite is a doosy!