Major Ways the Republican Tax Act Scams American Families So the Rich Can Get Richer
The Republican tax act signed into law on December 22, 2017 is not just a huge giveaway to the wealthy – it is a scam perpetrated by the GOP on millions of American families.
1. Raises taxes on millions of middle-class families ― Analysis by the nonpartisan Tax Policy Center indicates that 9 million middle-class families will face tax increases this year, and almost 90 million more will in ten years (2027).
2. Benefits the rich at the cost of middle-class families – The aggregate tax cut going to the top one percent – those earning $912,000 a year or more – will be five times larger in 2027 than the entire tax cut for the 180 million households earning less than that amount in that year.
3. Huge giveaway to those earning at least $5 million a year – More than half of the tax cut goes to the households in just the top one-tenth of one percent, who make at least $5 million a year, in ten years.
4. Hurts lower-income families – More than 120 million families earning less than $75,000 a year face a tax increase in the aggregate in ten years.
5. Corporations get permanent tax cuts, families get question marks ― Corporations get permanent tax cuts worth hundreds of billions of dollars, while tax cuts for families disappear after eight years.
The core of this act is a massive tax cut for corporations, but that is not the only way that the wealthy win big. Here are some of the ways the rich get even richer:
6. Massive tax cuts for corporations ― Wealthy corporations get an immediate, massive tax cut, which results in billions more for wealthy shareholders and rich executives.
7. Rich estates do great ― The 5,500 multimillion-dollar estates which should pay the estate tax get a huge tax cut.
8. Massive new tax loophole for passthroughs — Wealthy passthrough owners get tax cuts worth more than $400 billion from the 20 percent deduction of their passthrough income.
9. Millionaires still win big through individual income taxes — By reducing the top tax rate and raising the top income tax bracket by 27 percent, millionaires get a huge cut in individual taxes.
10. Protects tax loophole for hedge fund managers— By protecting the carried interest loophole, many of Wall Street’s wealthiest money managers will continue paying a lower tax rate than middle-class families.
This is just step one of their three-step plan to give to the rich and make American families pay for it:
- Step 1: ✓Done. Republicans have pushed their tax cuts for the rich, making claims unsupported by mainstream economists that economic growth will pay for them.
- Step 2: In Progress. Republicans are raising concerns about the deficit again and suggesting spending cuts are needed.
- Step 3: Planned. Cut important benefits for American families, like Medicare, Social Security, and education assistance, while doing nothing to make millionaires pay their fair share.