Trump's Tax Cut Plan Is No "Middle Class Miracle"
by Stephen Lendman (stephenlendman.org - Home - Stephen Lendman)
It's a bonanza for corporate America, high net-worth households, and real estate tycoons like himself - a disaster for everyone else.
It'll balloon the deficit and slash social benefits to help pay for it - another deplorable wealth transfer scheme.
Trump disgracefully lied calling it a "middle class miracle…a giant win for the American people…a once-in-a-generation opportunity," adding:
"This is a revolutionary change and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor, and as wages start going up at levels that you haven't seen in many years."
Tax cuts do nothing to create jobs and stimulate economic growth - unless benefits help workers substantially, putting money in the pockets of ordinary people who'll spend it, best accomplished through higher wages, no prospect of enough to help from America's neo-serfdom service economy, the country thirdworldized to make rich folks like Trump richer at the expense of most everyone else.
David Stockman said Trump's Goldman Sach's Mnunchin and Cohn economic team "t(ook) him to the cleaners" with their tax cut scheme, adding:
It's bare-bones outline released yesterday "is nothing more than an aspirational air ball that punts on virtually every policy detail…"
The plan is "mystery meat to be stealthily extracted during committee mark-ups after congressmen have run the Gucci Gulch Gauntlet of lobbyists prowling the halls outside."
State and local taxes are only eliminated deduction named. Fierce opposition from state and local governments, "real estate broker(s), local developer(s) and neighborhood bankers" will kill the idea.
Stockman mocked the proposal, saying "after nine months of work these two geniuses (Mnuchin and Cohn) have come up with $6 trillion of easy to propose tax rate cuts and virtually no plan whatsoever to pay for them."
Mocking them further, he said their plan contains only 1,500 words, "what amounts to just three words per day in office" for their 240 days on the job.
The plan scams ordinary Americans. Trump and his team claiming it helps them is a Big Fat Lie.
Stockman: "There are 122 million tax filers in the US (or 83% of the total) with AGI (adjusted gross income) under $100,000, but they would get essentially zero net cuts under the vague scheme presented Wednesday."
Reagan's 1981 tax cut plan was detailed in 185 pages. Trump's team could have written his in an hour "on a yellow pad," a "nine-page…nothingburger," a scheme likely to be debated, revised, and rewritten by Congress, a process likely to go on for months, maybe "indefinitely," said Stockman.
Fire Mnuchin and Cohn, he urged. Their scheme "is virtually guaranteed to eat itself alive on Capitol Hill."
Stockman minces no words. He'll have more to say about the ballyhooed corporate tax cut - unrelated to job creation and economic growth.
He doubts any tax bill will be enacted, surely nothing like what Mnuchin and Cohn proposed, Trump disgracefully extolling it.
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