A Year After the Middle Class Tax Cut, the Rich Are Winning

Tax Cuts Fade Over Time

Average rates dropped in 2018, but they’ll return to 2017 levels by 2026

15%

14.3%

Tax bill

14

13.4%

13

12

12.1%

11

2024

2025

2017

2018

2019

2021

2023

2026

2020

2022

Source: Source: Tax Policy Center estimates
Note: Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.

And, the cuts for middle-class wage earners fade over time. By 2026, changes to individual tax rules expire, while corporate changes are permanent. Unless Congress acts, 53 percent of all taxpayers will see a modest tax hike by 2027, the Tax Policy Center says, including almost 70 percent of middle-income families.

Everybody Hates the Trump Tax Plan

what people used to say about former Senator Phil Gramm .. “Even his friends don’t like him.”

.. the Senate version, which would

raise taxes on most individuals, especially in the middle and working classes, and 

add around 13 million Americans to the ranks of the uninsured,

all to pay for big cuts in corporate taxes.

.. After all, if we’re talking about a big increase in capital expenditure, where does the money for that expenditure come from? Nothing in the bill would make Americans consume less and save more. So the money would have to come from abroad — from selling stocks, bonds and other assets to foreigners, on a massive scale.

.. And this inflow of foreign money would drive up the value of the dollar and lead to huge trade deficits: according to my analysis of the most optimistic forecast out there, more than $6 trillion in deficits over the next decade. These trade deficits would have a devastating effect on manufacturing — remember those jobs Trump promised to bring back? — to the likely tune of more than two million jobs lost.

.. Nor does it take account of what would inevitably come next: tax-cut-induced deficits would, by law, trigger cuts in Medicare, and this would just be the start of a G.O.P. assault on programs like disability insurance 

.. “My donors are basically saying get it done or don’t ever call me again.”

What’s the Matter With Republicans?

Thomas Frank’s “What’s the Matter With Kansas?” In answering his title’s question, Frank argued that hardworking heartland Americans were being duped by a Republican Party that whipped up culture-war frenzy to disguise its plutocratic aims.

.. Middle-class and working-class Republican voters, he insisted, were voting against their own economic self-interest and getting worse than nothing in return.

.. You don’t have to be a dupe to be a “values voter”

.. believe that some moral questions are more important than where to set the top tax rate.

.. embracing theories about how the working class was actually undertaxed, rallying around tax plans that seemed to threaten middle-class tax increases and promoting an Ayn Randian vision in which heroic entrepreneurs were the only economic actor worth defending.

.. Trump has essentially become the Frankian caricature in full

.. a mistake for liberals to suggest that Trump is just returning to the Bush playbook

.. conservatism doesn’t have to be a mix of Randianism and racial resentment

..  a depressing percentage of American conservatives seem perfectly happy with the bargain that Frank claimed defined their party, with a president who ignores their economic interests and public policy more generally and offers instead the perpetual distraction of Twitter feuds and pseudo-patriotic grandstanding.

.. a segment of religious conservatives, like those gathered at last week’s Values Voters Summit, who cheered rapturously for an empty, strutting nationalism and a president who makes a mockery of the remoralized culture that they claim to seek.

.. Far better to have a president who really sticks it to those overpaid babies in the N.F.L. and makes the liberals howl with outrage — that’s what a real and fighting conservatism should be all about!

.. they’ve decided to become part of the caricature themselves, become exactly what their enemies and critics said they were, become a movement of plutocrats and grievance-mongers with an ever-weaker understanding of the common good.

Comments:

they claim patriotism as their own, try to spiritualize secular laws, and demonize immigrants.

Maybe Trump can supporters can live well on spite, resentment, and the veneer of religion (“Merry Christmas!), but I can’t.

.. Jesse The Conservative

The biggest fear of Democrats, is that Conservative Republicans will gain the upper hand–and actually enact some of their ideas–lower taxes, less regulation, free market health care, school choice, tightened welfare guidelines, and control of our borders and enforcement of immigration laws.

Democrats are scared to death that American will become accustomed to lower taxes, more disposable income, a smaller, less intrusive government, a vibrant economy, better schools, better health care, and the enforcement of the rule of law. Liberals know full well, that as soon as Americans return to their free-market, capitalist roots, Conservative messaging will be powerful and direct. Americans will have no problem understanding where their newly-found prosperity comes from.

.. I’m a Republican. I don’t like big government. I am against almost everything they do in DC night and day, aka, The Swamp. I vote on moral issues first and all the rest second. AND, I want the government to do something to return moral values to the center of American life.

.. DougTerry.us

What’s wrong with this picture? I don’t like government and I want government to do something about it!

.. Does anyone remember that Obama was staging war games in Texas a couple of years ago as part of a master plan to take over the country and stay in office? Never mind.

  • The old south still hates “the north” from the Civil War.
  • The far west hates Washington because it owns and controls so much public land.
  • The Republicans generally hate federal taxes because of the vast power amassed by Washington to tax for the common good. They aren’t really interested in that all that much. They want to whack away at “common” and shift to “good for me”, which is, after all, a basic human instinct.

.. Nothing is going to satisfy the dissatisfied 1/4 to 1/3. NOTHING. They are wedded to their grievances.

.. Victor James

.. So forget Reagan and think Brownback, the Kansas version of Trump who led that state into financial ruin. Brownback only denied financial reality, but Trump has that beat by a mile.

.. Francis W

.. The most depressing thing about the rise of Trump is that a sizable percentage of the population really wants a bullying, inexperienced narcissist to be president and and another substantial percentage didn’t see it as a major problem when they cast their vote last fall.

.. WallyWorld

.. There has been one balanced, pragmatic, Republican President since Dwight Eisenhower, and that’s George H.W. Bush, and the party cast him out for trying to be responsible about the budget deficit. Trump did not create the current Republican party, he merely fully unmasked it. The Republican party of today is full of a lot of very dark and dangerous thinking, governing out of animus and resentment, all from a base of ignorance. It’s bad out there.

‘Middle-Class Tax Relief’ Is a Hoax

The top 20 percent already pony up 84 percent of income taxes.

The mantra of both parties has been that tax relief should be directed at the middle class while the rich need to pay “their fair share.” But, in terms of the personal income tax, that mantra already has been realized. The middle class pays hardly any tax at all, while the preponderance of the burden falls to the rich.

.. Another question is: what do middle-income Americans, or even low-income Americans, owe their government and their society in the form of at least modest taxes designed to sustain the governance that all citizens count on? Leave aside income redistribution. What about the military defense of the nation? What about federal infrastructure? What about law enforcement? What about immigration enforcement? These are things that all Americans need. Shouldn’t all Americans make at least some contribution, even if it is nominal, to supporting them?

.. Some note, inevitably, that those who don’t pay income tax still pay Social Security payroll taxes. True. But those are taxes collected specifically for their own later Social Security payments