Tax cuts, winners and losers
The Republican tax plan has been reported. People are analyzing the plan. The following analysis comes from Heather Long from the Washington Post.
First, she comments on the big winners.
Big corporations would be the biggest beneficiaries. The bill would cut the top corporate rate from 35 to 20 percent. What do corporations frequently do with profits. They raise the pay of the CEO. They increase dividends to the wealthy stockholders. They buy back stock.
The super rich come next. Repealing the estate tax and the alternative minimum tax would mostly benefit the super rich.
Hedge funds, doctors, lawyers and consultants would get a sizable discount on there taxes due to what is called the "pass through" business rate. Instead of the richest paying 39.6 percent, they could pass through some of their income on which they would pay 25 percent.
Next, she comments on the losers.
Some small business owners are losers. She says "The National Federation of Independent Business, which represents 325,000 small businesses would not support the bill because it leaves too many small businesses behind. The original idea was to lower small business taxes to 25 percent, but the actual language in the bill only allows small business owners to pay 30 percent of their business income at the 25 percent rate. Any individual earning over $200,000 a year (or couple earning more than $260,000) would pay the rest of their taxes at a rate of 35 percent."
About the working poor she says, "the bottom 35 percent of Americans would not get any extra benefits."
The following quote comes from Jerry Howard, chief executive of the National Association of Homebuilders. "Contrary to their assertions the republicans are picking winners and losers...they are picking rich Americans and corporations over small businesses and the middle class."
What would you expect after the United State Supreme Court decision called "Citizens United" ( decided by the five Republican leaning Justices) allows corporations and billionaires to spend unlimited amounts of money buying our political system?