HOW ABOUT THOSE TAX CUTS! OH, I DIDN’T MEAN YOU

You really don’t have to read the hundreds (476) of pages of the new tax bill.  All you really have to know that Donald Trump is a thief, liar, degenerate, sociopath, misogynistic, low-life.  Everything he says is a lie and yet people still believe him when he speaks.  You can always tell when Trump is lying…his lips are moving.  He doesn’t even know what the truth is.  He distorts all the facts and then believes his own lies, which is why it sounds honest coming out of his foul, ugly mouth.

Congress is about to approve the largest change to the U.S. tax code in 30 years. Lowering taxes for American businesses (and some individuals…for a few years) is the heart of President Trump’s plan to boost the economy,

“We are going to be saying Merry Christmas again, with a big, beautiful tax cut,” Trump said Wednesday at a speech in Missouri.

Now. Here is the truth about the tax bill…

It makes sweeping changes to health care that are expected to lead to 13 million Americans dropping insurance, and it opens up more land to oil drilling in Alaska. It also alters the treatment of state and local taxes, which will affect local government budgets for schools and roads.

No Democrats voted for the bill. Here’s a rundown of what is in the bill:

Big win for corporations: The tax rate for big businesses would fall from 35 percent to 20 percent starting in 2019, a large reduction that would put the U.S. corporate tax rate at a lower level than many other foreign nations.

Big win for (most of) the rich: The top tax rate for millionaires would fall under this plan (from 39.6 percent to 38.5 percent). The bill will exempt even more families from paying the estate tax when they pass property and other inheritance to kids and relatives. Many mega rich would also benefit from a last-minute change to the bill to lower taxes even further for so-called “pass through” businesses like LLCs. (THIS IS EXACTLY THE TYPE OF BUSINESSES TRUMP RUNS.

Congress’s official scorekeepers say over 80 percent of millionaires would pay less in taxes in the coming years under this plan.

Lower taxes for most Americans — until….

According to the Tax Policy Center — a nonpartisan think tank — below are the percentage of each income group who will receive tax cuts in 2018, as well as the average amount of the cut enjoyed by that group. Similar information is then presented for 2027, the end of the ten-year budget window.

 

 Income Level Percentage with tax cut  Average tax cut 
2018 2027 2018 2027
$0 – $25,000  47%  41% $150  $120
$25,000-$48,600 84% 62%  $450 $360
$48,600 – $86,100 89% 67%  $1,080 $1,070
$86,100 – $149,400 88% 71%  $2,100 $1,940
$149,400 – $216,800 86% 62%  $3,170 $2,920
$216,800 – $307,900 84% 56% $3,800 $4,080
$307,900 – $732,800 93% 73% $8,090 $10,490
>$732,800 80% 66% $64,430 $123,240

Note that by 20127, the poor and middle class will be paying more taxes, while the wealthy will be paying less.

The bill does away with some popular tax credits and savings.

Elimination of MOST of the state and local tax deduction.  About a third of Americans itemize their tax deductions, and almost all of those people take the state and local tax deduction.  Now, people will only be allowed to deduct up to $10,000 in property taxes.

The AARP has come out against the bill, claiming it would raise taxes on over a million seniors by 2019, largely because of the various changes to credits and deductions.

Goodbye to the ability to deduct losses from “fire, storm, shipwreck, or other casualty, or from theft.”

Goodbye to the deduction for tax preparation expenses. Republicans argue it will be much easier for most Americans to fill out their taxes now.

Goodbye to the deduction for people who bike to work.

Goodbye to the deduction for moving expenses.

The individual health insurance mandate goes away. Americans would no longer be required to purchase health insurance or else pay a penalty. The Senate plan repeals the “individual mandate.” The Congressional Budget Office, the official nonpartisan estimator, has predicted that this change would cause health insurance premiums to rise by about 10 percent a year and prompt 4 million people to drop insurance by 2019 and 13 million to drop it by 2027.

Drilling would be allowed in Alaska’s Arctic National Wildlife Refuge. The latest version of the bill would make it legal for oil and gas companies to drill in a part of Alaska’s ANWR area that’s along the coast.

People who sell their homes will have a harder time avoiding taxes. At the moment, the first $250,000 gain on the sale of a home is tax-free as long as it’s your primary residence and you have lived in the home for two of the past five years. Under the Senate plan, you would have to live in the home for at least five of the past eight years.

Only the richest 1,800 Americans would pay the estate tax. At the moment, when a person passes away they can leave up to $5.5 million in property and other assets for their kids or other heirs without anyone paying tax. Inheritance above that amount is taxed at a 40 percent rate. The Senate plan would double the exemption limit, so any inheritance up to $11 million for individuals ($22 million for married couples) would not be taxed. Only about 1,800 families a year would be subject to the Senate tax threshold (down from about 5,000 now).

A “Harvard tax” on big college endowments. Private colleges such as Harvard with endowments worth over $500,000 per student would pay a 1.4 percent tax on investment gains every year.

 

INEQUALITY IN AMERICA

Back in 1980, the bottom 50 percent of wage-earners in the United States earned about 21 percent of all income in the country — nearly twice as much as the share of income (11 percent) earned by the top 1 percent of Americans.

But today, according to a massive new study on global inequality, those numbers have nearly reversed: The bottom 50 percent take in only 13 percent of the income pie, while the top 1 percent grab over 20 percent of the country’s income.

That trend is even more remarkable when you set it against comparable numbers for wealthy nations in Western Europe. There, the bottom 50 percent earn nearly 22 percent of the income in those economies, while the top 1 percent take in just over 12 percent of the money.

Comparing the income distribution in America, to Europe, ncome distibution in Western Europe is similar to how things were in the United States nearly 40 years ago.

The 2018 World Inequality Report finds that the rise of income inequality in the United States is “largely due to massive educational inequalities, combined with a tax system that grew less progressive despite a surge in top labor compensation since the 1980s, and in top capital incomes in the 2000s.”

Since the 1970s the price of higher education has skyrocketed, putting the price of tuition out of reach for many low-income students. Over the same time, the tax code became more generous to the wealthiest Americans — the top marginal income-tax rate fell from 70 percent in 1980 to 39.6 percent in 2017, taxes on capital gains fell by more than half from the mid-1970s to the mid-2000s, and the estate tax has fallen as well.

Those changes have made it easier for high-income Americans to grab more and more of the income pie in any given year.  From 1980 to 2014, for instance, the bottom 20 percent of earners in the United States saw their after-tax income rise by just 4 percent, according to the World Inequality Report. By contrast, the top 10 percent saw their post-tax income more than double over the same period.

The 2018 World Inequality Report finds that the rise of income inequality in the United States is “largely due to massive educational inequalities, combined with a tax system that grew less progressive despite a surge in top labor compensation since the 1980s, and in top capital incomes in the 2000s.”

Since the 1970s the price of higher education has skyrocketed, putting the price of tuition out of reach for many low-income students. Over the same time, the tax code became more generous to the wealthiest Americans — the top marginal income-tax rate fell from 70 percent in 1980 to 39.6 percent in 2017, taxes on capital gains fell by more than half from the mid-1970s to the mid-2000s, and the estate tax has fallen as well.  Those changes have made it easier for high-income Americans to grab more and more of the income pie in any given year,

From 1980 to 2014, for instance, the bottom 20 percent of earners in the United States saw their after-tax income rise by just 4 percent, according to the World Inequality Report. By contrast, the top 10 percent saw their post-tax income more than double over the same period.

In conclusion, everyone but Trump and his richest friends gets screwed.

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