Trump Tax Cuts — Are They Tricks or Treats?

President Donald J. Trump and First Lady Melania Trump host Halloween at the White House | October 30, 2017 (Official White House Photo by Keegan Barber)

Swamp creatures are out casting their spells

More than half of all Americans support the tax cuts

President Donald J. Trump said today that the local media is more reliable when it comes to honest reporting than the ‘fake news’ spilled out by national news organizations. He also said the upcoming tax proposal will bring more companies back to America, increase entrepreneurship and unburden mid-American families from high taxes. The remarks were made as the President participated in a tax reform industry meeting in the Roosevelt Room, while the exterior of the White House was decorated for Halloween.

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Perhaps ironically, some of the same establishment ghoulish swamp creatures that told us Trump would never be president, the stock market will crash, and we’d be in war with North Korea by July 2017 are casting their spells by churning out more fake news for their team.

“We have tremendous excitement from businesses, manufacturing and industry,” Trump said, noting that Democrats are “going to say it helps the rich, it helps the rich, but that is untrue” because they have not seen the proposal yet. The president called it “biggest tax event in the history of our country.”

“The stock market has bumped up 54 times” since Trump took office he said indicating “$5.5 trillion bump” to our economy since Nov 8.

President Donald J. Trump, joined by First Lady Melania Trump, signs a Presidential Memorandum ordering the Acting Secretary of Health and Human Services to declare the opioid crisis a national public health emergency | October 26, 2017 (Official White House Photo by Andrea Hanks)

President Trump was right when he said Democrats and the national mainstream media would be pouring out the criticism before the proposal would be released. Examples include these headlines:

“The Bizarre Way Sarah Sanders Opened The Press Briefing” –CNN

“Economists See Little Magic in Tax Cuts to Promote Growth” –New York Times

“The Ominous Absurdity of Trump’s Tax Cuts”–CNN

“Donald Trump Wants To Raise Your Taxes” –New York Times

Trump also said the erroneous reporting suggesting he wanted to phase in tax cuts over a 5 year span was not true.

Local News More Honest

Local news reporting has generally been the polar opposite of national news. Take for instance, Bill Laverty’s opinion piece in Cinncinatti.com. Laverty, retired founder and president of one of the largest Healthcare IT consulting and staffing firms in the country, writes “the Trump administration has put forth a well-designed and far-reaching tax reform package that is designed to decrease the corporate tax rate, incentivizing capital investment and simplifying the tax code.”

Highlights of a nine-page blueprint previews a reduction in the number of individual tax brackets from seven to three, slash the U.S. corporate tax — now one of the world’s highest — and eliminate most tax deductions except for incentives for home mortgages and charitable donations.

House Ways and Means Committee Chairman Rep. Kevin Brady, R-Texas the tax overhaul is designed to create economic growth by “getting people back to work and higher paying paychecks” and “eliminate many of the special interest deductions and loopholes that riddle the tax code today.”

Brady predicted earlier this month that the special interests of the swamp “will fight tooth and nail” to protect pet tax provisions “even if it means killing tax reform.” Fighting the inevitable media and Democratic attacks, he said, emerges as “our biggest challenge.”

“At a combined tax rate of 39 percent, the U.S. has the highest business tax rate in the industrialized world,” Laverty explained. “Over the past 25 years, rates across the developed world have fallen, while the U.S. business tax rate increased and as a result, many U.S. companies have moved their facilities and jobs out of the country. The administration’s plan will lower our business taxes from 39 percent to 20 percent and consequently, companies will finally be incentivized to bring operations back, leading to domestic job growth and ultimately creating a windfall in tax revenue that can be used to fund infrastructure projects that are desperately in need of cash.”

Texas Supports Trump Tax Cuts

In Texas, a leading state thriving in the Trump economy, a sampling of local news offers uplifting news for the President’s tax cuts:

Trump, joined by Texas Gov. Gregg Abbott, Lt. Gov. Dan Patrick and FEMA officials, attends a briefing on the continuing Hurricane Harvey relief and recovery efforts | October 25, 2017 (Official White House Photo by Andrea Hanks)

—“Having a job is the best way to prosperity and we find that there are many parts of this plan that would allow for an economic environment that is more conducive to job creation,” said Vance Ginn, senior economist at the  Texas Public Policy Foundation in Austin.

— The Texas Association of Realtors said that the combined provisions in the plan would save Texas households more than $830 million in tax expenditures in 2018.

— Texas Rep. Michael Burgess, (R) said the tax cuts offers “an extraordinary opportunity to make history” and will “put our country on the path to long term economic stability.”

—Jeff Moseley, CEO of the Texas Association of Business, said that of what they know from the blueprint offered, “everything we have seen so far is extremely positive,” and the proposed reforms “would deliver economic growth, jobs and paychecks.”

National Polls Show Support

Nationally, the October IBD/TIPP poll (not a mainstream media survey) indicates more than half of all voting Americans support doubling the standard deduction for tax filers, lowering the business income tax rate from 35% to 20%; and cutting the number of tax brackets from seven to three.

Surprisingly, 81% support—including 68% of Democrats–lowering the “pass through” tax rate on small businesses and file taxes using the individual income tax form from 39.6% to 25%.

Sen. Sherrod Brown, D-Ohio, ranking member on the Senate Banking, Housing, and Urban Affairs Committee, met with the Trump last week said the plan will likely have Democratic support if it includes incentive for working families.

“We’re very excited about the prospect of tax cuts,” Trump consultant Kellyanne Conway said. “The president says that tax cuts is better than tax reform. I think reform strikes some as swamp-like semantics, we’ve heard it all before…We look at the tax cuts as being a pay raise for hard-working Americans, so you can keep more of your hard-earned money.”

 

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2 Comments on "Trump Tax Cuts — Are They Tricks or Treats?"

  1. Thanks for borderline shout out re war predictions- I’ve never been called a ghoulish swamp creature before – I’m kinda flattered. Are you in favor of Trump plan to do away with estate tax?

    • Same kind of flattery I feel when I am called a deplorable. A badge of honor. From the little bit I know about the death tax, or estate tax, it only effects the most wealthiest. I just looked it over and the current IRS code says: Most relatively simple estates (cash, publicly traded securities, small amounts of other easily valued assets, and no special deductions or elections, or jointly held property) do not require the filing of an estate tax return. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $1,500,000 in 2004 – 2005; $2,000,000 in 2006 – 2008; $3,500,000 for decedents dying in 2009; and $5,000,000 or more for decedent’s dying in 2010 and 2011 (note: there are special rules for decedents dying in 2010); $5,120,000 in 2012, $5,250,000 in 2013, $5,340,000 in 2014, $5,430,000 in 2015, $5,450,000 in 2016, $5,490,000 in 2017, and $5,600,000 in 2018.

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