A lesson in history about
tax cuts promised by Trump is quite simply this: Trump is a failure and he will continue to do so – to wit:
Trump’s 2017 tax cut: After two full years the
impact of that massive tax cut was measured and reported on from NPR (link here) on December 20, 2019
about the Republicans-only passed sweeping tax cut.
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It was supposed to be a gift-wrapped present to
taxpayers and the economy. But in hindsight, it looks more like a costly lump
of coal.
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The tax cut was hyped as the signature legislative
accomplishment of Trump's first term.
§
He had campaigned hard for the measure,
promising it would boost paychecks for working people.
Trump when he
signed the bill; said: “It will be rocket fuel for our economy. Our
focus is on helping the folks who work in the mailrooms and the machine shops
of America; the plumbers, the carpenters, the cops, the teachers, the truck
drivers, the pipe-fitters – the people that like me best.”
The Facts and
Failures:
1. More
than 60% favored people in the top 20%.
2. It
slashed the corporate tax rate by 40%.
3. Corporate
tax revenues fell 31% in the first year after the cut.
4. Overall
tax revenues declined two years in a row.
5. Supporters
insisted the economy would grow fast & make up for the lost revenues – it
did not.
6. Treasury Secretary Steve Mnuchin promised:
“The tax plan will pay for itself with growth.” (It didn’t). If you cut taxes, you get less in revenues to pay
bills, and at the same time, spending increased spending. (FYI: In reality the deficit exploded).
7. It failed to produce a permanent boost in economic growth; in fact, it only grew 2.9% which was exactly the same as in 2015.
8. Spending short-term did lift, but burned out quickly as investments declined for two straight quarters.
Now 7 years later history & Trump seem to be repeating itself – to wit:
After many billionaires ignored Trump for 2024, they’re
back since Trump now again, since his massive 2017 tax cut benefitted so many of them,
are ponying up to help him now again (Why? Trump said recently he will not
allow any high income tax cut that Biden promises and in fact Trump said he would
extend his 2017 tax cut and no one could stop him [sic]).
This story from the FINANCIAL TIMES in full explains all
that and it also shows who will benefit the most all over again (edited and formatted to fit the blog):
“Republican Megadonors Paying
Up for Dinner with Trump”
Billionaire Investor John Paulson will host the fundraising event
in Palm Beach next month.
Others ponying up to
co-chair the event include: (1) Sugar
tycoon Pepe Fanjul; (2) Casino magnates
Steve Wynn & Phil Ruffin; (3) World Wrestling Entertainment co-founder
Linda McMahon; (4) Conservative megadonors Robert & Rebekah Mercer; (5)
Former Senator Kelly Loeffler (R-GA) & her husband; and (6) Intercontinental
Exchange founder Jeffrey Sprecher, will also be there, among others.
There are two guest
tiers: (1) Those who give at least $250,000, and (2) those who drop a cool
$814,600 (and get to sit at Trump’s table).
Everybody will be able to snap a photo with the former
president and receive a goody bag with a “personalized ‘Our Journey Together’
coffee table book” according to the invitation.
(In case you’re wondering about the book’s content, it is
filled with photos from Trump’s time in office and features him waving from Air
Force One on the cover).
The fundraiser will benefit the Trump campaign, the RNC, and Trump's own “Save America PAC” – the group that shelled out more than $50M for his legal
bills.
My 2 Cents: So, step right up folks – Don the Grifter is back in
town.
His Snake Oil pitch is only
slightly higher than it was in 2017.
If Trump were to win in 2024, then bye, bye birdie so, stay tuned – it might get very, very ugly.
But, for goodness sake stay tuned and help get out the vote to stop this new craziness –
that will work.
Remember what President
Biden said during his SOU address that he’ll ensure that the ultra-rich pay
their fair share in taxes – right now they do not (CNBC report).
FYI: According to a 2021 White House study, the wealthiest 400
billionaire families in the U.S. paid an average federal individual tax rate of
just 8.2%.
For comparison, the average American taxpayer in the same year paid 13%.
(F/N: My 2023 tax rate is
22% and I assure you I am NOT rich).
Thanks for stopping by.
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