Turns out Trump Tax Cuts Make the Rich Pay More: What Say You Democrats?
Four months after passing the Tax Cut and Reform Bill, analysis from economists from the east and west coast show that the very wealthy are paying more, and the lowest earning families will no longer pay federal income taxes.
None of the arguments against the Tax Bill have been able to stay. First, dozens of companies from Starbucks to Walmart announced that they would pass a one-time rebate on to their employees, fueled directly by the bill. Then, as changes to tariffs started to fall into place, mothballed factories were brought back online. Trump really is making America great again but slowly releasing citizens from the overbearing burden of heavy Democrat taxes.
After the bill was signed, economists had to change their 2018 forecasts to more positive projections. Democrats who voted against the bill are still unable to cope with the fact that their constituents are better off for it, except in the cases where their voters are among the 0.1% wealthiest in the country. And in that small percentile lay some Congressmen themselves.
Hoping to hark back to Ronald Reagan, the left said that if there were any savings for individuals and for business, it would never trickle down to the families. In fact, over four million workers in the country have received bonuses, better benefits or higher wages as a direct result of the bill.
Economists Weigh In
Economists from different parts of the country weighed in on the merits of the bill. These included Boston University’s Lauren Kotlikoff and the University of California at Berkeley’s Alan Auerbach
The two of them co-authored an analysis that aimed to define the winners and the losers of the change in taxes. They concluded that the rich will “essentially” pay the “same share of taxes” as before.
The very top of the heap, the 0.1% who are the highest earners in the country will watch their contribution to federal income taxes rise from 18.9% to 22%. In all, the top 1% will pay 43.3% of the country’s total income tax, up from 38%.
More Families Will Pay Nothing
So the Tax Cut and Reform Bill has made adjustments at the very top, but what about the lowest earners? Mitt Romney lost the election for his remark that 47% of people in the country don’t pay taxes.
The new law removes more families than before from the rolls. Of all families, or “tax units,” 45.8% will not pay anything in federal income taxes or they will benefit from tax credits. Under Barack Obama, 43.4% did not pay taxes.
So thanks to Trump and the GOP, the rich are paying more, and low-earning families will no longer be paying income tax.
Nancy Pelosi Paying More
While the Democrat from California Nancy Pelosi voted a property tax that was rolled into the Tax Cut and Reform Bill that was signed by Trump and is helping 90% of American, she said one thing and did another.
Last month, Pelosi was still claiming that the bill was a disaster, saying that it will up the taxes on “86 million middle class families.” This was so very wrong that even the liberals at the Washington Post had to call her out on the lies.
Knowing that the tax plan really would raise taxes on the rich while helping the rest of the country, she worked with her accountants to quickly move her assets around in order to save paying over $130,000 in property taxes on her holdings.
“Because this provision means that the wealthy residents of high-tax liberal states will undoubtedly pay more on their taxes starting in 2018, some rich people have been trying to game the system by prepaying their property taxes.”
Pelosi was one of those wealthy liberals. No wonder she didn’t want the reform bill!
Wealthy Actor Bill Murray Loves It
After it was signed, actor Bill Murray praised the bill during a television interview. Why a reporter would ask an actor for his opinion on fiscal policy is a bit strange, but Murray — with a net worth of around $140 million — thought it was great.
““I think …the change in the tax law is a great thing for the corporations… I don’t pretend to understand what that will mean in the future, what the budget will have to do to take care of what people call entitlements… that may or may not work. I don’t know… but I think the first step, it’s made things easier, there was probably too much regulation.”
Sources: Investor’s Business Daily