Wednesday, April 26, 2017

The Big Lie Promises Big Corporate Tax Cuts

The Tangerine Shitgibbon, desperate for something to pass and impress the rubes, has announced a yuge, beautiful tax cut, if you are a corporation. With US corporations already yugely profitable and sitting on yuge hoards of cash like Smaug, don't imagine that these cuts are needed to stimulate the economy.
The Trump administration on Wednesday declared that President Trump would press for the largest tax cut and broadest revamp of the tax system in history, as officials said they would seek huge reductions to 15 percent in the rate paid by businesses large and small.

“We want to move as fast as we can,” Steven T. Mnuchin, the Treasury secretary, said at an event in Washington as the White House planned an afternoon rollout of its principles for what it bills as the first overhaul of the tax code in three decades. “This bill is about creating economic growth and jobs.”

He vowed it would be “the biggest tax cut and the largest tax reform in the history of our country,” in line with Mr. Trump’s grandiose portrayal. But there was no expectation that the White House would elucidate how the deep cuts would be financed, and administration officials are cognizant of the challenges of pushing through a proposal that could dramatically add to the national debt.

If, in fact, the proposal cuts taxes but fails to close loopholes or raise some other taxes, it would not be a true reform of the tax code. It would be a tax cut along the lines of President George W. Bush’s tax measure in 2001 and 2003. Nor is it clear that it would be the largest in history. Tax cutters from Warren G. Harding and Calvin Coolidge to John F. Kennedy and Ronald Reagan vie for that title.

Mr. Mnuchin offered few specifics about the blueprint, other than confirming that its centerpiece will be a 15 percent business tax rate, which would apply not only to corporations, but also to small businesses and other large owner-operated conglomerates, such as Mr. Trump’s real estate empire. He also said the White House is not on board with the border-adjustment tax that is central to House Republicans’ tax plan “in its current form,” setting up an intraparty struggle over the elements of the plan and how to offset the deep reductions envisioned.

Mr. Trump also wants to increase the standard deduction for individuals, according to people briefed on the plan, an attempt to fulfill his promises to provide tax cuts for middle-income people and simplify the process of filing returns. That proposal is likely to engender strong resistance from home builders and real estate agents, who fear it would diminish the importance of the mortgage interest deduction, as well as other sectors that could see the tax benefits associated with their businesses curbed or eliminated.

And Democrats are gearing up for a fight. “Trump’s latest proposal is another gift to corporations and billionaires like himself,” said Tom Perez, the Democratic Party chairman. “Trump must release his tax returns, as millions of Americans are demanding, before Congress can consider any Trump tax plan. We must know how much Trump would personally financially benefit from his own proposal.”
The increased standard deduction is hardly likely to survive in Congress because the purpose of the bill is to transfer more of the tax burden from the poor abused corporation to the backs of the consumers who aren't good for much else. And the key to what actually comes out depends on the haste with which Tangerine with the help of Lyin' Ryan and The Turtle, can push it through Congress, if at all. The faster it moves, the more unpleasant shit will be crammed into it. The Democrats need to bring the disaster that is Kansas front and center in this fight.


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