Robert Reich explains the Trump Tax Cut Fraud in a manner every American irrespective of ideology can understand. It is imperative that folks understand it, so they have reason to engage in fighting against it.
The Trojan Horse Tax Cut
Reich points out the primary goal of the Trump administration, cloaking a middle-class transfer of wealth to the rich as a tax cut.
The goal of Trump and the Republican leaders is to pull off a giant redistribution of over $1 trillion from the middle-class, working-class, and poor to the rich, who are already richer than ever.
They’re selling this to the public with a false claim that the middle-class will benefit from their tax cut plan. It’s a gigantic Trojan horse.
For most Americans, the proposed tax cuts are tiny and temporary. That’s right – temporary. They will shrink in just a few years. And some middle class Americans will actually get a tax increase.
Meanwhile, the top 1 percent will get a gigantic tax cut. The Tax Policy Center estimates that the current plan will save the bottom 80 percent between $50 and $450 in taxes per year, but that it saves each person in the top 1 percent an average of $129,000 a year. For people at the very top, like Trump himself, the tax cuts are humongous. And the corporations they own will also get a massive tax cut.
This tax cut will explode the deficit. And when the bill comes due, politicians won't ask the wealthy to give back all their gains. They will once again come to the middle-class for concessions.
But once these tax cuts are passed, the budget deficit will explode. The Tax Policy Center predicts that it will cut federal revenue by $2.4 trillion over the next 10 years.
When that happens, the only way out of the crisis will be something dramatic – exactly the cuts in Medicare and Medicaid, and maybe even Social Security – that Republicans have wanted for years.
By this time, any talk of raising taxes on the rich will be dismissed.
We better fight this before its too late. Contact your politicians loudly and often. Let them know you will not allow them to pull the wool over them once again.
Also published on Medium.