by Lowell Ponte
“The wealthy are not getting a tax cut under our plan,” says Gary Cohn, the director of President Donald Trump’s White House Economic Council.
“Tax reform will protect low-income and middle-income households, not the wealthy and well-connected,” says President Trump. “The biggest winners will be the everyday American workers as jobs start pouring into our country….” Will Mr. Trump’s “pay raise” for the working class come more from cutting business taxes than from actually cutting worker taxes?
Cohn says that he “can’t guarantee” that taxes will not go up for many in the middle class. The lowest marginal tax rate is to rise from 10 to 12 percent….but at what income amount this rate leaps to 25 and 35 percent has not been announced.
The New York Times, The Atlantic and other liberal media are already quoting a study by “the nonpartisan Tax Policy Center” that claims the Republican plan would give huge tax breaks to the rich, increase the deficit by $2.4 Trillion or more over 10 years, provide only crumbs to the working class, and over time greatly increase taxes on the middle and upper-middle classes.
The liberal media loves the Tax Policy Center (TPC), which always attacks proposed tax cuts for corporations and the successful. The Wall Street Journal describes TPC as “a joint effort of the Urban Institution and Brookings Institution….two Democratic-aligned think tanks.” Why does the media call the left-leaning Tax Policy Center “nonpartisan”?
Lawmakers of both parties acquire power and importance from taxation and spending, and many show little desire to cut either. Many insist that any tax cut must be “paid for” by raising at least as much tax on somebody else. Republican legislative leaders agree that to pass tax reform with only 51 votes, it must be “deficit neutral,” i.e., not increase government debt.
By this trick, politicians virtually guarantee that Big Government’s total taxes can never be reduced, only redistributed among favored or targeted taxpayers.
Industries are thus coerced to make fat political contributions to buy new, or maintain old, tax breaks that protect them from higher taxes. The current tax reform legislation is expected to unleash “10,000 lobbyists” with cash in hand. This capital paid to politicians makes capitalist companies less able to hire workers or produce the economic growth that was sparked by past tax cuts.
Taxes do much more than fund the government and compel contributions. The tax code is used to advance ideology and do social engineering. Targeted Progressive tax redistribution usually plunders Republican enterprises to enrich Democratic cronies, comrades, and constituent groups – and to enlarge government.
Powerful lawmakers say they will retain the same “Progressivity” in government redistribution of wealth, while removing even more Americans from the income tax rolls. This could mean that a majority of Americans will pay no income taxes, see government merely as a free goody dispenser that costs them nothing, and vote for Progressives to keep their privileged tax-free status and benefits. By contrast, even European Sweden makes people pay tax on the welfare they receive.
Nobel laureate economist Milton Friedman proposed a “negative income tax” that would tax the rich and pay the poor. Today the “refundable” Earned Income Tax Credit and Child Tax Credit do this.
Republican Senators Mike Lee of Utah and Marco Rubio of Florida want to double the child credit. Because the U.S. today has record low fertility, this might encourage Americans to have more children. The U.S. in the long run would need fewer imported workers that drive down wages. You are taxed, meanwhile, to fund Planned Parenthood.
Trouble is, every tax dollar “spent” by politicians is a dollar that cannot be cut from business taxes. President Trump has said that lowering the U.S. corporate tax rate to 20 percent, from today’s world high among advanced nations of 35 percent, is “non-negotiable.”
Politicians, however, have a scam. They impose heavy taxes on businesses, which pass the cost on to you as higher prices. You pay these taxes – while the politicians denounce the “greed” of companies selling you expensive products, perhaps half the cost of which is really hidden taxes. “Tax the rich,” they demand. Do they think we forgot that the income tax was sold as a tax “only on the rich” that now robs us? Who is the greediest of all? Big Government.
Are the politicians willing to reduce their “invisible taxation” by lowering business taxes, as President Trump wants? Or the inflation “tax” Craig R. Smith and I explain in The Inflation Deception? (When government prints trillions of dollars out of thin air, you are robbed of the full purchasing power of the paper dollars you earned and saved; it is no accident that parts of the Congressional plan do not adjust for inflation, thereby letting lawmakers tax you twice.) Will greedy politicians keep taxing our patience by deceiving us and looting our money?
To schedule a fascinating interview with Lowell Ponte, a veteran think tank futurist and co-author of seven economics books, contact: Sandy Frazier at 516-735-5468 or email firstname.lastname@example.org .
For a free copy of Craig R. Smith and Lowell Ponte’s latest book, Money, Morality & The Machine, contact: David Bradshaw at 602-918-3296 or email him at email@example.com