Wednesday, January 3, 2018
Regarding the newly-enacted tax “reform,” what was promised is not what was delivered.
The president and the Republican leadership repeatedly promised reform that would simplify the tax code, focus tax relief on working families and close loopholes for the wealthy and businesses – none of which happened.
“Instead,” says Steve Amhoff of the nonpartisan Institute for Tax and Economic Policy, the bill “is more complicated, creates more loopholes for wealthy investors, and is more unfair to the middle class than current tax rules ...”
According to Dec. 25 edition of Barron’s magazine, the newly enacted legislation “is a major coup for U.S. corporations, but a mixed-bag of give-and-take for individual investors, with benefits sharply skewed to the wealthy ... and (it) reneges on many of its original objectives that would have benefited individual wage earners ... Most taxpayers will see their tax burdens decline” (at least temporarily) … but the bill “is disproportionately puny for lower-income folks compared to the high-net-worth taxpayers. While more than $300 billion in tax relief will go into effect in 2018, more than half of the benefits ... go to the richest 5 pecent of taxpayers, and more than a quarter go to the richest 1 percent.”
The president repeatedly promised that the rich would not prosper from the “reform” and, in particular, that “It will be bad for me.” These promises are challenged by the bill’s creation of one of the largest loopholes ever: a 20 percent deduction of “pass-through income,” a juicy new tax deduction for the wealthy who own lots of physical assets, e.g., real estate. And it just so happens that the president almost certainly owns hundreds, literally, of pass-through real estate firms.
Now begins the Republican’s campaign “to sell” this horribly unpopular, unfair “reform” to the American public: Are we possibly so gullible or memory-deficient to buy it?
Robert J. Hursey Jr.