The Republican triumvirate has given the Country what is being called a “big Christmas present.”
While it still has to go to conference, the plan is said to reduce corporate taxes and the taxes of virtually every American. You can google ‘tax plan – winners and losers’ to find out opinions on who wins and loses under this plan.
One thing is certain: Corporate tax rates will go down and stay down, and your tax rate may or may not go down, but it will not stay down. It is scheduled to rise again in a few years. Now you see it, now you don’t. Lowering corporate tax rates is what Republicans love to call ‘trickle down economics’.
This means when a company increases profits (or lowers expenses such as taxes) all that extra cash trickles down to your bank account.
We keep hearing this year after year. Yet no one can point out when it has actually worked. For the last several years companies have recorded record profits, even with ‘high’ taxes, and not one nickel has gone into the pocket of the working person. Indeed, wages are lower on average than in Obama’s first term. Where will all this windfall go? An article in Sunday’s Arizona Republic by Russ Wiles stated, “A reduction in the corporate tax rate would enhance profitability and cash flow in general, which could lead to higher payments to shareholders”. In a nutshell, that is where your trickle down will go; not in your pocket, but in the pockets of shareholders. Shareholders, and off-shore banks.
Once again, the party of the Right has hoodwinked the American public. That’s how they ‘fixed’ the tax rate. But don’t despair; the only Christmas present Congress has given is to the Democratic party who will remind all of us this give-a-way to the rich will not go unnoticed.
Oh, if this isn’t enough, Republicans next move will be to ‘fix’ Social Security and Medicare.