Wow! Trump’s budget announcement that corporate tax rates will be reduced from 35 percent to 15 percent (which is a 57 percent tax cut, not 20 percent) really showed his outright contempt for 95 percent of the American people! IRS data for 2016 shows corporate tax generated $345 billion in revenue. This reduction means corporate taxes would only generate $148 billion – a loss of almost $200 billion in federal tax revenue!
In a previous letter, I reminded you of what the phrase “revenue neutral” meant – tax reduced in one place is gained from another. Treasury Secretary Mnunchin used that phrase during the announcement, so guess who is going to pay that $200 billion – YOU and ME! And that’s going to be on top of the 6.6 percent tax cut being given to everyone who earns over $400,000 per year!
But the best is yet to come (if you want to call it that). The White House and all Republican members of Congress are going to go on a marketing campaign to tell you how good this is going to be for you – sorta like getting your flu shot – and there won’t be any increase in debt. They are going to use their new “alternative math” to say it will cause the economy to produce so many new jobs and grow so much that the improved economy will generate the lost tax revenue – not possible according to economists. They are counting on you being as dumb and silent as a basket of grapes!
David Vail, O’Fallon