Trump’s Tax Cut Giveaway for Monied Interests
by Stephen Lendman
Trump proved he’s a reliable imperial/corporate/privileged class tool.
Nearing his 100th day in office on Saturday, a White House statement turned truth on its head, saying:
He “has taken bold action to restore prosperity, keep Americans safe and secure, and hold government accountable.”
“At an historic pace, this President has enacted more legislation and signed more executive orders than any other president in over a half century.”
“With a focus on rebuilding the military, ending illegal immigration, and restoring confidence in our economy, the President is keeping his promises to the American people.”
Fact: He’s done nothing to “restore prosperity” for ordinary Americans, suffering under protracted Main Street Depression conditions.
Fact: Nearly a fourth of US working-age Americans are unemployed, most others way underemployed.
Fact: The most notable US growth industry is poverty.
Fact: Trump’s rage for war endangers Americans and humanity.
Fact: “(T)his president” has no legislative achievements. He signed a blizzard of executive orders, largely doing harm, not good.
Fact: His focus on militarism diverts vital resources to warmaking, not domestic issues benefitting all Americans.
Fact: He’s waging greater war on undocumented immigrants than any of his predecessors - including Obama, infamously called America’s “Deporter-in-Chief.”
Fact: He’s beholden exclusively to monied interests.
Fact: He’s broken every positive promise made to ordinary Americans.
It’s barebones with no explanation on how it’ll be financed. He proposed cutting taxes for large and small business to 15%.
Few, if any, large companies pay the current 35% rate. Most pay around half that amount. Many pay little, nothing or get large rebates.
Trump wants trillions more dollars handed to corporate America, large investors and high-net worth individuals.
His plan is the same neoliberal dirty business as usual transference of wealth from low and middle income households to monied interests around for decades, ordinary people stiff-armed so privileged ones can benefit.
He proposed compressing individual income tax brackets from seven to three: 10, 25 and 35%. The income range for each wasn’t explained.
He wants estate and alternative minimum taxes eliminated, mainly benefitting wealthy households - notably super-rich ones like himself and his working-age family members.
US corporations will be offered a one-time chance to return foreign-held profits home at an undisclosed low tax rate, no strings attached.
He’ll double the standard deduction for individuals, eliminating taxes on $24,000 of a couple’s income. Most itemized deductions would be eliminated, including state taxes for residents of high-tax states like California and New York.
Mortgage interest, charitable giving and retirement savings deductions would remain unchanged.
Tax cuts for business and other monied interests don’t stimulate economic growth as Trump claims.
What’s needed is helicopter money dropped on Main Street. When ordinary people have it, they spend it, generating economic growth, creating jobs, and a virtuous circle of prosperity lifting all boats equitably.
Trump’s scheme is polar opposite what’s needed - a boon for monied interests, a bust for most others.
It’s hugely not revenue neutral. Treasury Secretary Mnuchin claiming it’ll “grow the economy and create massive amounts of revenues” is what GHW Bush once called “voodoo economics.”
Economic Outlook’s chief global economist Bernard Baumohl blasted Trump’s scheme, saying “the bare bones plan we saw unveiled today is already conceptually flawed and unlikely to go far in Congress.”
“The final product will bear no resemblance to the principal points highlighted in today’s meager release. Certainly, the first step in this process was unimpressive.”
Whatever tax cut emerges in final form, if any, will look much different than Trump’s initial proposal.
Take whatever he and other administration officials say with a grain of salt.
Stephen Lendman lives in Chicago. He can be reached at email@example.com.
His new book as editor and contributor is titled "Flashpoint in Ukraine: How the US Drive for Hegemony Risks WW III."
Visit his blog site at sjlendman.blogspot.com.
Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.