Trump and His Rich Pals: Celebrated April 15 (Tax Day) As Most Americans Wept

A Crazy More Graphic Graphic Isn't It

(Effective: 2018 and beyond) 

Run of the Mill SOP Republican Tax Cut Scheme

(Winners: Rich & Corps. / Losers Most Americans)

Trump-GOP 2017 Tax Cut law or Cesspool – the Highlights (NY Times report here):

1.    A NBC/WSJ poll found that only 17% believed their taxes would go down as a result of this bill.

2.    A CBS poll found that 40% said they saw no change from the tax bill. Some 32% said their taxes went up while only 25% said theirs went lower.

3.    One reason many Americans don't feel the tax cut: The most dramatic benefit was aimed at slashing the corporate tax rate.

Major Overall Impact in a Nutshell and More from Investopedia here and Winners and Losers here from Business Insider:

For the wealthy, banks and other corporations, the tax reform package can be considered a lopsided victory given its significant and permanent tax cuts to corporate profits, investment income, estate tax and more. 

Financial services companies, especially, stand to see huge gains based on the new, lower corporate rate (21%) as well as more preferable tax treatment of pass-through companies. 

Some banks have said that their effective tax rate will drop under 21%.

Recall that Trump promised to reduce and even eliminate the federal debt by showering benefits on corporate America, but ended up doing far less for average citizens that he also promised to help.

Most respondents told tax preparation firm H&R Block that that their overall tax liability dropped nearly 25% for 2018. But their refunds were largely flat because the federal government changed withholding tables to direct the savings to workers paychecks rather than seeing them wait until April for a single check refund.

The impact the tax cut bill has had on the federal deficit:

The National Association for Business Economics (NABE) in its most recent outlook predicted job growth would slow to 2.4% this year, and pegged the odds of recession by next year at 35%.

Overall, some economists said slashing corporate rates paved the way for stronger growth in 2018, and higher wages, and will continue to do so in 2019. However, other economists dispute that this year will be anywhere near as good as last year.

The monthly deficit hit an all-time high of $234 billion in February following a 20% drop in corporate tax revenues in their tax cut. Treasury said the first half of the year hit $691 billion and is further likely to reach $1.1 trillion by the end of the fiscal year (September 30, 2019).

My 2 cents: What do we see here? My hunch is another Trump con job – a slick one at that – one that is huge and one that benefits his rich pals.

Mr. and Mrs. Working Class America as polls indicate seem to believe Trump’s rationale for this key piece of legislation is his crowning achievement.

Will his loyal base accept that and stick with him? Time will tell. 

We now have a front row seat to watch him spin it while trying to keep them in tow so he can win in 2020. 

Wait and see. Thanks for stopping by.