Well folks, I did take a little break over the holidays to recharge the batteries and I am back now and in full battle gear. Let’s talk about the horrendous tax bill.
The truth about the tax bill is that it rewarded a limited number of people. To be specific 1) Corporations who provide the campaign funds to keep congressional and senate members in office; 2) The very wealthy in this country who by virtue of owning 76% of the wealth, primarily in the form of corporate equity, will benefit enormously from the upward movement of stock price, which has already occurred and will continue into the foreseeable future; and 3) Those who own partnerships, S Corps and Sole Proprietorships, who will now be able to pass through 20% of their income at the corporate rate of 21% rather than the personal top rate of 37% (formerly 39.5%). So these people received a double bonus. And in case you are wondering, our current president’s entire source of personal income falls into this category.
Just for fun I performed a calculation of various incomes at the prior and new rates to see just who benefits and by how much. I took into consideration the doubling of standard deductions from $12,700 to $24,000 for a married coupled, and the elimination of the $4,050 allowable per person and dependent deduction.
|$ 20,000||$ –|
|$ 80,000||$ 393|
|$ 160,000||$ 2,453|
|$ 250,000||$ 5,973|
|$ 400,000||$ 13,981|
|$ 500,000||$ 13,789|
|$ 1,000,000||$ 29,565|
The median family income in the US was $59,000 in 2017. At that rate a family can expect to receive approximately an after tax increase in take home income of $300. In Oregon where the median family income is slightly less at $57,000, the increase in take home will be slightly less. For those paying no taxes but benefiting from the increase in the child tax credit, your increase in annual take home will be $300. The question you must be asking your self now with all this available income is should you plan a trip to Hawaii or Paris.
This tax cut in effect will add $1.5 Trillion in national debt, making us more vulnerable and limiting our ability to react to future recessions or even depression as we nearly experienced in 2008, all so the wealthy can become even wealthier. Yes you did hear Trump say you were going to get so much money you won’t know what to do with it. Trump’s personal economic adviser Gary Cohn suggested you remodel your kitchen with your savings. Yes you can do a lot with $300 these days.
Help me get to a congress and fight these lies. I may not be able to stop the monster, but I can damn well expose the hypocrisy that is congress.