THE TAX MAN COMETH.... THE TRUMP TAX FRAUD AND THE WORLD TURNED UPSIDE DOWN....

Just today, while savoring the “blue wave” that swept the nation on Election Day, I checked my FB page to discover that the BUSINESS ROUNDTABLE was encouraging readers of FB to contact their Members of Congress to encourage their fast adoption of the Republican Tax plan!  Their argument is that the bill will benefit “every American.”  I WAS IN SHOCK!  Needless to say, I left a comment – which was promptly deleted…..  So, here it is…

Trump and his ilk designed their tax plan benefits to go to the uber wealthy in the form of eliminating the estate tax, the Alternative Minimum Tax, and changing the tax rules for LLCs (Limited Liability Corporations), allowing the personal earnings of LLCs to be taxed as corporations instead of as personal income, which it most certainly is.  That sort of LOOPHOLE is referred to as “pass-through earnings.”  “Pass-through earnings” are income that simply passes through the legal fiction of an LLC, designed to limit liability to the paper company only, and right into your bank account – at a lower tax rate than would otherwise apply if you were a salaried or hourly wage worker. That cost the US Treasure – BILLIONS OVER 10 YEARS!  

What about the working families?  They get to lose healthcare supports, the CHIP program aimed at children’s health care that expired on September 30^th,  food stamp cuts, Medicaid cuts, and reductions in student loans to name a few.  What a deal…..

Middle class families lose the ability to deduct certain mortgage interest. All of us could no longer deduct state income taxes paid – especially painful for those in NY State and other states that collect income and sales taxes. Only 7 states do not collect income taxes presently… the other 43 states have an income tax and are, thereby, impacted by this measure.  Middle class families also lose the ability to deduct certain property taxes as well.  In fact, for most Middle Class families, the largest federal tax deductions that they file each year are: 1. real estate taxes on their primary home and one second residence; 2. state income taxes paid; and, 3. Mortgage interest paid. Also eliminated are deductions for interest on student college loans.  Interesting that these deductions for state taxes and local real estate taxes will continue to be allowed for corporate filings, including LLCs. Would you be surprised to discover that Trump himself has more than 500 LLCs? Of course, these are just a few elements of this wholly imbalanced Republican tax scheme.  

In summary, billions given away to wealthy corporations which are awash in cash profits, much of it held overseas to avoid paying legal taxes on it.  And, billions more given away to the top 1% wealthiest Americans who, compared to everyone else in the income scale from top to bottom, need such largess least.  We pay for it by slashing social and economic supports for struggling working families and the long-forgotten middle class families as well.  And, when that isn’t enough to add to the bottom line of the wealthy and top companies, then we will just borrow it and add to the national debt – by $1.7 TRILLION over 10 years according to the Congressional Budget Office. 

 And, the reasoning is that all of this will “trickle down” to the rest of us and lift all boats and not just corporate and personal yachts. Well, except, we have tried that before – under President Reagan and President Bush.  Both times, it trickles right into the pockets of wealth, into the securities markets, into the pockets of CEOs and members of the corporate boards….while wages and income for the rest of us remained stagnant.  We have been here before – and we know that “trickle down economics”, once described by  the first President George Bush as “voo-doo economics”, does not work at all.

I am confident that like most Americans, you would agree that growing the bank accounts and stock holdings of the already wealthy should not be our goal.  Lifting up working families and providing opportunity and relief for the hard-pressed middle class should be the objective.  Investing in our future through renewal of our infrastructure and expanding public systems should be the goal.  Investing in our citizens through educational opportunity with increased access to advanced training and education including student aid and reduced or free tuition for post-secondary training for young and old alike and, thereby supporting the job marketplace of the future, should be our agenda too. And, in the meanwhile, we need to provide for those who struggle to catch up through affordable healthcare, and social supports in housing, food, and job training.  If we expect people to pull themselves up by their boot straps, they need to have boots.  

Trickle down has never worked and - right now - is a flaming failure in Kansas. And expanding the deficit to further enrich the already wealthy is not the answer.  And, neither is borrowing from an uncertain future only to burden the next generation – WHEN WE DO NOT NEED TO DO SO.  Building a community together, hand-in-hand, and working toward a better future for all of us should be our goal.  To borrow from our founding Constitution, we should be all about taking actions and passing laws “to promote the general welfare” and not just the welfare of a few.  

So, in response to the BUSINESS ROUNDTABLE request to call my Member of Congress (Faso) to provide my input on the tax plan, I will do what they have asked and make the call... maybe many calls.....  but, the message will be to OPPOSE THE REPUBLICAN TAX PLAN. Its adoption would be a disaster for the nation and a billion dollar benefit to the Trump family and their Country Club Oligarch friends.