Maybe it doesn’t matter since DJT’s tax reform plan seems dead in the water right now, but I have not seen a lot of attention given to this.
I have mentioned before that the MAIN reason Speaker ZEGS wants to “repeal” Obamacare is to grab the money saved from the Medicare block grant to “pay for” the cut in the top income tax bracket.
But there is another giveaway to the wealthy that they are not even pretending to pay for.
And it will benefit DJT *directly*, to the tune of millions and millions of dollars.
Maybe even billions.
In the only bit of DJT tax returns we have seen, the two pages leaked to David Cay Johnston that were discussed on TRMS on March 14, we saw that DJT was able to reduce his 2005 taxable income substantially through various loopholes, making his effective tax rate approximately 3.5%.
Unfair on its face, and infuriating for someone like me who pays a much higher percentage of a much lower income.
The only thing that brought his tax burden up to a more reasonable level was being subject to the alternative minimum tax:
In 1969, Congress noticed that 155 people with high incomes were legally using so many deductions and other tax breaks that they were paying absolutely nothing in federal income taxes. Their nonexistent tax bills were an embarrassment.
So Congress instituted the Alternative Minimum Tax with the aim of making the tax system fairer. But because the AMT was never indexed to inflation—as the regular income tax is—each year, more and more middle-income taxpayers are snared by a tax originally targeted at the rich.
The AMT exemption amounts are now indexed to rise with inflation.
The AMT is a thorn in the side of upper middle class taxpayers who feel they are targeted by it unfairly. They don’t care if millionaires and billionaires benefit more from its elimination, they just want the tax eliminated for them.
We know from the two pages of DJT’s 2005 tax return that the AMT caused him to pay an additional $31,500,000 in taxes in 2005. That’s how much he would have saved in 2005 if the AMT did not exist.
Thirty one million, five hundred thousand dollars.
And we can assume it would save him even more in years we haven’t seen.
And it will also save millions for his cronies and wealthy donors who are lighting a fire under the stock market in anticipation of getting their hands on that money soon.
But people who aren’t paying attention choose to focus only on the parts of the “tax reform” plan that will take a few percentage points off the current tax brackets. Also, the standard personal exemption will more than double, which looks like a big savings for everyone who does not itemize deductions.
That change all by itself looks like this:
Of course the guys at the far right of the chart save the most money. But the folks smack dab in the middle, families earning $50,000 to $75,000 a year, will save about $1,000 in tax payments per year. Yay! Right?
Not so fast.
First of all, it seems like a scam to me to tell middle income earners “I’ll give you a thousand dollar reduction in taxes if you give me a thirty million dollar reduction in taxes.”
But lots of folks are desperate enough that they don’t care what DJT gets, so long as they end up with any amount more than they have now.
And if DJT voters were smart enough to think past the nose on the end of their face, they wouldn’t have voted for him.
My mom had a lot of truisms about Republicons and one of them was: “Republicons only care how much it costs if it is going to benefit poor people.”
So because the “working families” Rs claim to care about would catch a break by this doubling of the standard exemption, they also have to lose something.
Rcons are eliminating the deduction for dependent children!
While the proposed plan increases the standard deduction for married couples from $12,600 to $30,000, many married couples also have children, who count for additional exemptions they would lose under the new plan. Since each exemption is currently worth $4,050, couples with three children or more would get a larger deduction under the system we have now than under the proposed plan.
Five exemptions — one for each parent and each of the three children — is worth $20,250. After factoring in the $12,600 standard deduction, a couple today would reap a break of $32,850, compared with the flat $30,000 under Trump's plan. That discrepancy would grow with each child added into the picture.
Have you seen this reported anywhere in the mainstream media? I haven’t. Why isn’t this huge news? I think even deplorables would get out in the street and march if they realized that was part of the “tax reform”!
Families with more than three children would therefore end up having a higher taxable income than before, and would pay more.
I can only imagine how the “quiverfull” fundamentalists, and others who for various reasons have chosen to have large families and enjoy tax benefits as a result, would react if they stopped watching Fakes News and did their own research for a change.
But all they are thinking about is the reduction in the tax bracket and the doubling of the standard deduction, as Wall Street robs them blind in search of chips to cash in.
Misdirection, thy name is DJT. Hay—why quit when the scam is still working?
Single parents would be hit even harder because of the elimination of the additional “head of household” deduction. I remember my mom explaining it to me when I was about 8 years old, the first year we were living in an apartment on our own. Although we were a family of two, she was allowed to claim a head of household filing status that would help her get a bigger tax refund. She used it to put a down payment on living room furniture that she continued to pay on every month for a few years.
So parents of children who are also losing the head of household deduction, are left with this chart below:
If they are earning between $20,000 and $200,000 will see their after tax income REDUCED under the DJT tax”reform” plan!
That’s “fair” isn't it? Everything must be fiscally responsible? Everything must be paid for?
Then why is NO effort being made to offset eliminating the Alternative Minimum Tax?
High earners are *not* being asked to pay more in some other area to make up for the lost government revenue from the AMT.
And NO effort is being made to offset eliminating the 40% Estate Tax. People inheriting amounts over $5.5 million are *not* being asked to pay more in some other area to make up for the lost government revenue from the estate tax. (Blue Team members should NEVER use the “death tax” framing because “death tax” implies that everyone who dies has to pay it.)
The estate tax repeal could save DJT’s family BILLIONS of dollars when he shuffles off this mortal coil and divvvies up the empire (but that assumes he is telling the truth about being worth $10 billion, and I highly doubt that...).
This is Reverse Robin Hood Republicon politics in a nutshell. Take more from those who are struggling. Give more to those who are comfortable. Hide what you are really doing by planting magician’s assistants in the media who get people to look the other way until it is too late.
Rcons throw a quarter in the beggar’s cup and expect folks to be out of proportion grateful, then grab fistfuls of Benjamins for their own back pockets counting on the likelihood that folks won’t notice. And they *don’t* notice, because they were watching the “news” channel that agrees to hide the worst elements of R legislative policies.
Isn’t it bad enough that DJT and his children are coining money hand over fist by their commercialization of the presidency? Rs complained mightily about WJC letting donors stay in the Lincoln Bedroom, but DJT doubled the initiation fee at Mar-A-Lago! That money goes directly to his family business, even while spokesbots twist themselves into pretzels trying to make it seem as though it is no different than raising campaign funds.
Sadly, deplorables are so gullible and so math challenged that they may be easily persuaded they got a tax cut even if their taxable income and taxes go up. If that’s what they hear on Fakes News, that’s what they will believe.
After all, they think Obama raised their taxes even though he lowered them, because that’s the lie they heard every day on hateradio and repeated to each other as if it were true.
So I figure Rcons will lie about this too.
And when people finally figure out what happened, they’ll probably find some way to blame it on Democrats.
PREVIOUS TRUE BLUE REPORT diaries
Apr 26: The desperate bully is always spoiling for his next fight
Apr 25: Can you reason with a racist?
Apr 24: Will DJT ever learn the limits of bullying?
Apr 23: TBR SUNDAY: Did Putin or Bannon direct DJT to “endorse” Le Pen?
Apr 22: BLUE RIBBONS: Flipthe6th voters, tax return marchers, and (international!) marchers for science
Apr 21: But he’s not *running* as a prolife candidate?
Apr 20: Is it good or bad that DJT has no idea what he is doing with respect to North Korea?
Apr 19: What Huckabee actually DID say, about journalism, was totally outrageous
Apr 18: Another 20 point swing means the Rs are scrambling to regroup
Apr 17: The number of persuadables is growing as people lose confidence in DJT
Apr 16: TBR SUNDAY: He shook up the world—Easter fears can be overcome with Easter JOY
Apr 15: BLUE RIBBONS: David Fahrenthold, Amariyanna Copeny, Chasity Wells-Armstrong, the ASAN
Apr 14: Everyone talking, everyone reaching out—is it helping?
Apr 13: Three ways to respond to the stress overload of current political news
Apr 12: Republicons--the party of cruelty
Apr 11: Spicer’s comment was MUCH more than just an “insensitive reference to the holocaust”
Apr 10: If DJT changes policy based on televised images... let’s show him some
Apr 9: TBR SUNDAY: DJT supporters do not realize nuclear war could mean the end of the world
Apr 8: BLUE RIBBONS: Jeff Merkley, Gina Mathew & Connor Balthazor, 70 (!) advertisers dump Bill-O
Apr 7: Not taking our eyes off Heitkamp, Manchin and Donnelly—they should be primaried
Apr 6: Take Me to Your Leader
Apr 5: DJT ran for POTUS to get back at Obama but the person he is discrediting is himself
Apr 4: Obama’s is bigger—Twitter following, inauguration crowd size, and approval rating
Apr 3: Filibuster a SCt nominee? Ds are changing the rules! This never happened before !1!
Apr 2: TBR SUNDAY: Put Your Lights On
Apr 1: BLUE RIBBONS for 4/1/17—Dick Cheney, Richard Burr, Rick Wilson
MARCH
Mar 31: The possible reasons Flynn was refused immunity are all good for the Blue Team
Mar 30: Special Assistant Ivanka—every word she says from now on is a DJT advertising ploy
Mar 29: “It’s just that valuable” — do you know the MAIN reasons Ryan wants to pass the AHCA?
Mar 28: Nipping at their heels
Mar 27: In cheering Republicon failures, think like a surgeon
Mar 26: TBR SUNDAY: Dare we hope the tide is turning? Or is that unrealistically optimistic?
Mar 25: BLUE RIBBONS: Sheldon Whitehouse, Al Franken, Bobby Brooks, Betsy Anderson, ACA phone callers
Mar 24: HaHaHa-Ha-Ha You’re gonna need Congressional approval and you don’t have the votes
Mar 23: Rcons hate Obamacare for selfish, greedy, racist reasons, but not enough to fix it.
Mar 22: Neil Gorsuch’s attempt to seem wide-eyed and innocent makes him look even worse
Mar 21: Using Trump as a bad example—no Trump Sleep, Trump Food or other Trump habits
Mar 20: Is DJT a compulsive liar, or out of touch with reality? Five scenarios...
Mar 19: TBR SUNDAY: A budget is a moral document—a statement of public compassion
Mar 18: BLUE RIBBONS: CBO scorers, Senate Intelligence Committee, Judge Derrick Watson
Mar 17: They know DJT is lying. Here’s one sad reason they follow him anyway.
Mar 16: Mick Mulvaney's ignorant, callous, evil, Republicon definition of compassion
Mar 15: Message Discipline 101—Pushback against Rcon talking points re DJT 2005 tax return
Mar 14: Message Discipline 101—Pushback against Rcon talking points about Obamacare repeal
Mar 13: Culture, Civilization, Rural America, Working Families—the missing word is a “tell”
Mar 12: TBR SUNDAY: The Rcon definition of Christians is as wrong as the Rcon definition of Democrats.
Mar 11: BLUE RIBBONS: A Day Without a Woman, Native Nations Rise, Voting Rights Act still lives
Mar 10: How to talk to people who have trouble understanding actions have consequences
Mar 9: Where’s the fire? The real reason Rs are trying to rush TrumpCare through Congress
Mar 8: Message Discipline 101: TrumpCare, RyanCare, GOPCare, DonTCare—what’s in a name?
Mar 7: How very hard it is for a woman to go a day without paid (or unpaid) work
Mar 6: Can DJT really be stumbling into the exact investigation we want?
Mar 5: TBR SUNDAY: How is it even possible that deplorables see a man of faith when they look at DJT?
Mar 4: BLUE RIBBONS: Chris Hayes, Malcolm Nance, Cierra Fields
Mar 3: I’m glad Bannon, Conway, Carson, Sessions, Miller, et al. are in the DJT Administration
Mar 2: “In every major fire it always starts with smoke. And smoke is what kills you.”
Mar 1: Am I the only one whose skin crawled at the Carryn Owens BIRGing moment?
FEBRUARY
Feb 28: Spinspotting 101: Special Prosecutor for what? It’s so easy to answer that question
Feb 27: Spinspotting 101: I’ve seen no evidence because I haven’t looked for any evidence!
Feb 26: TBR SUNDAY: If Neil Gorsuch were a man of integrity, he would decline the S.Ct. appointment
Feb 25: BLUE RIBBONS: Russia Flag trolling, Dixie Swastika grabbing, District Days demonstrating
Feb 24: There is no such thing as a compassionate conservative
Feb 23: Chief of Staff, Nat’l Security Advisor, GOP Head, President Bannon—too many hats!
Feb 22: DJT has a few questions for you—SMURF THIS POLL!
Feb 21: The end of “access journalism” means it’s time to #sendtheinterns
Feb 20: KAC lying low for now… can we banish her (and all her ilk) from the airwaves completely?
Feb 19: TBR SUNDAY: DeVos cartoon, Ruby Bridges, unearned unhappiness and childlike faith
Feb 18: BLUE RIBBONS: Vice Adm. Harward, Melissa McCarthy, and intel whistleblowers
Feb 17: And Ain’t I an American?
Feb 16: Please tell your family and friends—If you regret your DJT vote, speak up NOW
Feb 15: R-supported forced childbirth laws deny the autonomy of women
Feb 14: What did the president know? Everything. When did he know it? From the beginning.
Feb 13: Coping with The Madness of King Donald by hoping political comedy will save us
Feb 12: TBR SUNDAY: The Poverty and Justice Bible
Feb 11: BLUE RIBBONS: Swastika removers, Ninth Circuit Panel, and the Persisterhood!
Feb 10: The first three words of the Constitution are “We, the People” not “I, the President”
Feb 9: Who first inspired your political activism? Who inspires you now?
Feb 8: We cannot and will not be silenced—Here’s what to do if they try to silence you
Feb 7: Plain Talk Tuesday: Tell people the Affordable Care Act is the same as OBAMACARE
Feb 6: Interview Skills 101—Internalized oppression and what Ryan Lizza did right. BRAVO!
Feb 5: TBR SUNDAY: These protest signs with Bible cites will confuse and befuddle RWNJs
Feb 4: BLUE RIBBONS: Temple B’Nai Israel, Judge Robart, CNN, Senate Phone Callers
Feb 3: Not rich, not smart, not a good businessman, not a winner—DJT is NOTHING he claims to be
Feb 2: Thursday action—Encouragement, thanks, and apologies (pick one or more)
Feb 1: July 7, 2009 to August 25, 2009 and September 25, 2009 to February 4, 2010
JANUARY
Jan 31: If you’re on overload that’s part of their plan—there’s more than one way to #resist
Jan 30: Interview Skills 101 for reporters attempting to interview KAC and other Rcons
Jan 29: TBR SUNDAY: Blessed are they who hunger and thirst after righteousness
Jan 28: BLUE RIBBONS: Women's March participants and #NoMuslimBan demonstrators and...
Jan 27: I wish Steve Bannon would tell me to keep my mouth shut
Jan 26: Thursday Action—Have you ever written a letter to the editor? Here’s how to start
Jan 25: The Asch Conformity Study, inauguration crowds, and the importance of speaking out
Jan 24: #ResistTrumpTuesday—good news day or another paying dues day?
Jan 23: Spy the Lie 101: How to enjoy watching Rcon spokesbot interviews, even KAC!
Jan 22: TBR SUNDAY: Why I prayed for the President* today
Jan 21: The only silver lining in the midst of these clouds
Inaugural (!) diary: Stop expecting Republicons to make sense