Trump Signs Giant Giveaway To The Rich Bill

(Photo of Trump signing the GOP tax cut bill is from CNN.com.)

Well, the odious and unfair Republican tax reform bill (i.e., bill to give massive tac its to the rich and corporations) is now the law. Donald Trump signed it on Friday. He called it the biggest tax cut ever (it is not), and continued to say it benefitted the middle class mainly (it does not). The chart above shows the average tax cut for each income group. Note that the top 5% make out like bandits -- and that is especially true of the top 1% and the top 0.1%.

Trump also said that workers would be thrilled to see all the extra money in their weekly paychecks (and would then love the GOP tax plan). I don't think that's true. Here's what each income group would see extra in a weekly check:

Bottom quintile..........$1.15
Second quintile..........$7.31
Third quintile..........$17.88
Fourth quintile..........$34.80

That doesn't sound like something that would excite American workers -- especially the bottom 60% of workers. Compare that to the huge benefits enjoyed by the rich. Workers are not going to like being given a pittance, while the rich enjoy big money saving.

And they certainly won't like it when they realize that pittance will disappear by 2027, and they will owe more in taxes than right now. By 2020, the bottom 60% will owe more in taxes, while the 60-80% quintile will only see $30 a year in savings. But the rich will still enjoy huge benefits. The top 1% will enjoy 83% of all tax cut benefits by 2027 (see bottom chart).

The Republicans (and Trump) think people will fall in love with their tax cut bill once it starts showing up on their paychecks. I disagree. I think it will just make people madder about the unfairness of it. And I think they'll show their displeasure at the polls in November of 2018.

NOTE: The figures in these charts are from the Tax Policy Center.