Taxes

Here Are The GOP’s Tax Cuts for The Rich

JM Ashby
Written by JM Ashby

We've always known the Republican party is going to push tax cuts for the rich because that's what they always do, but the exact tax rates they intend to pursue have remained something of a mystery.

According to the Washington Post, the GOP plan, or at least one of their plans (more on that in a minute), calls for cutting taxes for the rich in three different ways.

Party leaders are quietly circulating proposals to lower the corporate tax rate from 35 percent to 20 percent and lower the top individual income tax rate from 39.6 percent to 35 percent, according to the people familiar with the plan. [...]

Top White House negotiators and key GOP leaders have agreed on those targets, but apparently President Trump has not. On Sunday, as he was about to board Air Force One in New Jersey, Trump told reporters he hoped to see the corporate tax rate lowered to 15 percent, a level that his own negotiators had privately dismissed weeks ago.

In addition to cutting the corporate tax rate and top marginal rates, their plan also calls for cutting taxes on pass-through income. That's three different tax cuts for the rich.

By their own admission, the cost of cutting corporate tax rates from 35 to 20 percent would be about $100 billion per point or $1.5 trillion in total. Factor in the other tax cuts they're calling for and the total cost or their plan will obviously be much higher than that.

Their plan also reportedly calls for eliminating deductions for state and local taxes as a means of paying for (some) of their tax cuts, but that will be nowhere near enough to cover the total cost.

Now, Senate and House Republicans have said they would be releasing their own plans so it's not entirely clear which party this plan belongs to. In any case, we should expect the final package that both chambers agree to will look something like this.

Personally, I doubt the elimination of deductions for state and local taxes will survive because that will upset too many Republicans congressmen in blue states and it may even draw the ire of Inquisitor Grover Norquist, but that remains to be seen.

It's notable and remarkable that the GOP's tax cuts will explode the deficit even if they manage to secure the modest tax increases they're calling for, because nothing they're proposing will come anywhere close to paying for all of it.

Everyone that's reading this is old enough to remember what the Bush Tax Cuts did and what the GOP is calling for now is many times worse than that. The only thing that's missing is another war, but I feel like Trump will get around to that part soon.

  • jimtowndem

    i just saw that north korea says we have declared war on them so maybe the orange a** just got his wish.

  • muselet

    It’s notable and remarkable that the GOP’s tax cuts will explode the deficit even if they manage to secure the modest tax increases they’re calling for, because nothing they’re proposing will come anywhere close to paying for all of it.

    By a strange coincidence, my R-supporting, tax-cut–cheerleading local fishwrap ran a big editorial yesterday wondering when Washington was going to get around to dealing with The Terrible Problem Of Our National Debt Which Will Destroy Us If It’s Not Cut To Zero Now NOW NOW!

    A part of me finds this R innumeracy darkly amusing.

    –alopecia

  • Aynwrong

    The Trump administration is the Bush administration with a less dignified clown as it’s mascot. The GOP went from Bozo to Pennywise.

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