Donald Trump has always gone around saying that he understands the tax code better than any man alive. If true, such a fact suggests to the layman that an ant could do your taxes, if only it could hold a pencil. Actually, however, it is a fundamental truth of American life that the process is very confusing. Litigator Andrew Grossman recently wrote an article, titled Is The Tax Code Really 70,000 Pages Long?
This is why the approval ratings for Trump and the GOP have recently taken an upward bounce. Although they have wrought a disaster in the form of their new tax plan, they hailed it as a victory. And most red voters have no idea at all why this is wrong.
Paul Ryan tweeted out the following- and promptly deleted it.
“A secretary at a public high school in Lancaster, PA, said she was pleasantly surprised her pay went up $1.50 a week- said that would more than cover the cost of her COSTCO membership next year!”
One doesn’t know whether to laugh or cry.
Is this something to worry about? Yes, it’s scary. Anytime anything good happens for those jackals, it’s scary. But it was easy to predict they would get a bounce off this before it starts to hurt people. The negatives will start hitting home pretty soon. And when they do, we have to catch it and make sure that we give credit where it’s due.
The bill is a disaster in every way. Fareed Zakaria called it “possibly the worst piece of major legislation in a generation”
But even still, they did manage to pass something through a legislature, for the first time in Trump’s entire disaster of a presidency. For that reason alone, this looks like a victory for the GOP on the surface. Unless people can be shown how bad this will cost them, we will not have what we need to get that giant mammal out of the White House.
Remember when Bush got reelected in 2004? He was all smiles and sweetness before the election. Within another year, though, he showed his true intent. The first thing that happened was we had the gas price crisis smash home, safely after he’d have 4 more years to do all the harm he could.
Then, those who’d voted for him were miserable. Lamentations could be heard at every gas station in America. Unkind fate, that gives us what we pay for!
If we wish to avoid a repeat of those horrible years, a number of things are necessary, but certainly among them, developing a working understanding of what state tax dollars do and where they go is critical.
States help educate the nation’s children, build and repair its roads and bridges, provide health coverage to low-income families and their children, and much more. Many of these services are essential to building strong, healthy communities and the nation’s long-term economic vitality.
Although the exact amount varies greatly from state to state, federal tax money is distributed to all the states and is a sizeable chunk of its revenue, the revenue allotted to the maintenance of these crucial infrastructural expenses.
Thus, less federal revenue means less money for the states. Less money for the states means less money for local areas, which means local and state tax and cost increases.
This is how local and state and cost increases in education and healthcare give such a severe beating to middle income.
Gigantic federal top income tax cuts lead to regular folks getting slammed with state and local increases.
All of this is the pits for anyone who isn’t a billionaire, of course, but the conservative media machine rolled right into effect to make it seem otherwise. The trick is both disingenuous and brutal.
They cut one part of your taxes, the federal, and make it personal by boasting about it on television. They then take a substantially larger piece of your income from you as state and local taxes, but they make it abstract. They do all they can to keep the two from being related in the minds of the people.
During Obama’s tenure in office, the data demonstrated clearly that the U.S. individual income tax was very progressive, borne mainly by the highest income earners. In 2014, the top 1 percent paid a greater share of individual income taxes than the bottom 90 percent combined.
Reversing that state of affairs is the reason that Trump was put in power.
Poor people and seniors will get slammed terribly and subjected to varying indignities from those who believe one must earn the right to live. Medicaid is always first on the chopping block; in fact, just last month, the Trump administration announced that it would grant states the right to impose work requirements for Medicaid recipients.
An expert in the field wrote Millennial Democrats with the following observation.
“Every penny, dime, and dollar that top income gets a tax cut for, low and middle income gets backdoor increases to pay for it.”
Low and middle income will get hit with a few hundred or a few thousand cost increases. City officials will literally sit around, thinking up rules for us to break. Whatever minute tax cut we’ll get will be consumed by that. Only the 1% will benefit.
Before the GOP started in with this crap about the big top income tax cuts, local and state taxes for people of average income was about $800 a year. The average now is around 6 thousand a year per person.
One of the first thing states do is cut funding for college tuition, forcing colleges to hike tuition fees. This is the reason college tuition is so high. Before big Republican tax cuts in the 80’s, college tuition was very low. Millennials, ask yourselves- How many of us can’t even have a bank account now, thanks to lifelong student loan debt?
Another good example is water bills. Water bills used to be very low. But this also is among the first thing cities do when they get less funding due to less federal revenue, and therefore less state revenue. They hike water bills.
It has to be understood that federal revenue is distributed to the states and that state and local depend more on that than they do local and state taxes.
The GOP tax cuts are a massive fraud. They are a titanic transfer of more taxes and costs that average Americans, even upper-middle-income Americans, cannot afford to pay without greatly reducing their living standards. All so guys like Donald Trump and the Koch brothers can strut around like satraps.
Hillary Clinton was the only candidate that ran with a plan to protect average Americans if the market tanked from huge losses. She bothered to take the time about developing one because she realized that the market is a gamble.
If it should take a dive at a time when millions are having to retire, due to health and other issues, they get slammed. Social Security is guaranteed, but this already does not provide enough for most low and middle-income seniors, and the Republicans want to reduce benefits even more.
Republicans are also constantly trying to whack Medicaid. That program, along with Medicare, crucially supplements low-income seniors. This is not going to work. We are going to have a nation full of seniors in dire straits as soon as they can no longer work. Again- Millennials, this will be our parents and ourselves.
The Tax Cuts and Jobs Act, far from being a victory, will be a very serious crisis for America in a decade or two. We will be fleeced little by little from a million different angles. We need to raise awareness of how this breaks down. Getting people to understand how bad they are going to be hurt before they feel it is an indispensable condition for #TheBlueWave.
We simply cannot keep giving top income tax cuts at the expense of low and middle income. The middle class is the backbone of society. If it breaks, we cannot stand up.