There are a couple of things you need to know about the Trump/Republican tax cut plan just revealed (in a 9 page broad outline).
1. While Americans were told the tax plan was aimed at helping the middle class, the truth is that most of the cuts (the biggest cuts) would go to businesses and giant corporations. The current top rate of 39.6% would be massively cut to 20% for corporations and 25% for other businesses.
Americans would see their standard deduction doubled to $12,000 for a single person and $24,000 for a married , but it is unclear just how much this would save since other deductions (unnamed) would go away. The number of tax brackets would be reduced to three, and that was also unclear just how that would affect taxpayers.
The only clear thing is that this bill is a massive tax giveaway to corporate America.
2. Trump has already told at least two lies about the plan. First, he said the plan would not benefit him. But it would benefit him in several ways -- elimination of inheritance taxes (which only apply to the rich), elimination of the alternative minimum tax, the cuts to businesses (which will save his own businesses millions of dollars.
Second, he said that cutting business taxes would result in more jobs. That is just silly. If any business person already has enough employees to adequately service their customers (and only a poor businessman would have more or less than necessary), then why would they hire new workers with the extra tax money they get to keep. They wouldn't, because that would just unnecessarily cut into their own profits.
What other lies are Trump and the Republicans telling us about their tax cut plan?
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