Mind and Destiny

“I make no pretension to patriotism. So long as my voice can be heard ... I will hold up America to the lightning scorn of moral indignation. In doing this, I shall feel myself discharging the duty of a true patriot; for he is a lover of his country who rebukes and does not excuse its sins. It is righteousness that exalteth a nation while sin is a reproach to any people.”- Frederick Douglass

Location: Delhi, N.Y., United States

The author and his webmaster, summer of 1965.

Saturday, December 31, 2016

Trump’s Tax Plan

President-elect Donald Trump’s tax plan could increase the deficit by $7.1 trillion, unless massive cuts are made in benefits and services that working Americans depend on.  Three-quarters of lost revenues would come from corporate and business tax breaks that mostly benefit the rich.  The top 0.1 percent of households, which includes Trump’s family would get an annual tax cut of about $1.1 million each.  Nearly half of the tax cuts would go to the top 1 percent of households, who would get a tax break of nearly $215,000 a year.  The bottom 20 percent get a tax cut of just $110.

Corporate tax rates would be cut by nearly 60 percent from 35 percent to 15 percent, thereby losing $2.6 trillion over 10 years.   Corporations are already circumventing their fair share of taxes at a time of record profits.  Only $1 out of every $9 of federal revenue now comes from corporate taxes; sixty-five years ago it was $1 out of every $3.

Presently, American corporations hold $2.5 trillion in earnings offshore on which they owe more than $700 billion in taxes.  Trump’s plan would raise less than $150 billion, by cutting the tax rate on those offshore profits from 35 percent to just 10 percent on cash and only 4 percent on non-cash assets.  Trump’s plan would give tax-dodging multinational corporations with profits stashed offshore a tax cut of more than $550 billion.

Trump wants to increases taxes on nearly 9 million families while reducing the top tax rate on the wealthy from about 40 percent to 33 percent.  His plan to consolidate and lower tax brackets, would cost $1.5 trillion over 10 years, and mostly benefit the very wealthy.  As taxes decline considerably for the most wealthy, they’d increase for 8.7 million for most low-and middle-income families with children. 

Trump’s plan would lose $1.5 trillion, by slashing the top tax rate on hedge funds from nearly 40 percent to 15 percent.  Trump would cut the tax rate on the owners of so-called “pass-through entities” by as much as two-thirds.  Owners of larger pass-throughs would be taxed at the dividend rate of 20 percent.  Trump is the sole or principal owner of 500 pass-through entities, and he’d personally benefit a great deal from that massive tax giveaway.

The federal estate tax is only paid by estates worth at least $5.5 million.  Trump’s plan would lose an additional $174 billion, by eliminating estate and gift taxes, in order to boost the inheritances of millionaires and billionaires.  Assuming Trump is worth the $10 billion he claims, the change could give Trump’s heirs a tax break of billions of dollars.  


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