… Donald Trump.
Nicholas Kristof (NY Times op-ed) explains why This Isn’t Tax Policy; It’s a Trump-Led Heist
What do you do if you’re a historically unpopular new president, with a record low approval rating by 14 points, facing investigations into the way Russia helped you get elected, with the media judging your first 100 days in office as the weakest of any modern president?
Why, you announce a tax cut!
And in your self-absorbed way, you announce a tax cut that will hugely benefit yourself. Imagine those millions saved! You feel better already!
And you justify it by claiming the tax “plan” will create more jobs (no evidence for that), will help families with child care costs (but few families will see benefits), and will pay for itself (few tax experts believe it).
In fairness, Trump’s proposal does include some sensible elements. Raising the standard deduction is smart and would simplify everything, reducing cheating and the need for record-keeping because millions of filers would no longer itemize deductions.
But the heart of Trump’s “plan” is to lower taxes for corporations and the affluent. It would eliminate the alternative minimum tax, without which Trump would have paid less than 4 percent in taxes for 2005; with it, he paid 25 percent.
Where the tax plan would have a big impact is in empowering some very wealthy people, because of another bit of chicanery in the proposal: Trump apparently would allow some business owners to dodge personal income tax by paying at the much lower corporate rate. In other words, tycoons would try to structure their incomes to pay not at a 39.6 percent top personal rate but at a 15 percent corporate rate.
Then there’s the elimination of the estate tax. The White House talks solemnly about protecting family farms and other businesses, but give us a break! The estate tax now affects only couples worth more than $11 million. About one-fifth of 1 percent of Americans are affected — but the estate tax does limit the rise of inequality and assures a hint of fairness, since much of the wealth in rich estates has never been taxed at all.
Treasury Secretary Steven Mnuchin says Trump’s tax “plan” would be paid for partly “with growth” — which means that he has no idea how to pay for it. The Tax Policy Center examined Trump’s campaign tax plan and found it would cause the federal debt to rise by at least $7 trillion in the first decade, and more than $20 trillion by 2036 — slowing growth, not raising it. To put the latter number in perspective, that’s additional borrowing of about $160,000 per American household.
Effectively, we’d borrow from China or other countries to finance huge tax breaks for Trump and his minions. …
Kristof summarizes: “This isn’t tax policy; it’s a heist.”