I hope that all of you low-income and middle-income readers aren’t rushing out to spend the tax savings that Donald Trump has promised in his so-called tax “reform” proposal. Because, like previous Trump promises, this one is just another empty lie.
Unless, of course, your taxable income is north of $418,400. Or you and your spouse are planning to die and leave an estate of more than $10,490,000. Or you are subjected to the alternative minimum tax because you’re taking so many tax deductions.
Or you run one of the 1.7 percent of the sole proprietorships, partnerships or S corporations that generate more than 40 percent of all pass-through income and will get a huge windfall when your tax rate is cut from 39.6 percent to 25 percent.
But I suppose most of you reading this are not in these exalted income brackets, and most of you small business operators are already paying less than the proposed 25 percent tax rate for “pass-through” businesses. So, no tax breaks for you.
Moreover, since we are living in Nassau County and paying high state and local taxes which will no longer be deductible, we should be justifiably concerned that our federal income taxes may actually rise. No tax cuts for us.
And don’t believe Mr. Trump’s claim that “I’m doing the right thing and it’s not good for me, believe me.”
This claim is truly unbelievable. If you fall for that one, I’ve got a bridge or two to sell you.
The tax plan would provide a windfall to hedge fund managers, corporate executives, real estate developers and other members of the 1 percent.
And we don’t have to see those tax returns Mr. Trump refuses to disclose to know that he and his family would benefit “bigly” from this proposal.
The nonpartisan Committee for a Responsible Federal Budget has given a preliminary estimate that the plan could cost more than $2 trillion over the next decade.
Despite this, the deficit hawks in the Republican party, always ready to jump on any Democratic proposals that might raise the deficit, are conspicuously silent.
However, we can expect that Republicans will soon be showering us with promises that the tax cuts will spur fantastic growth and, somehow, pay for themselves.
Any such claim would be based on the same supply-side economic theory that was advanced for previous Republican tax cuts.
Now, as then, there is no factual basis for such “voodoo economics.” It didn’t work then, so why should anyone expect it to work this time?
As for all those loopholes that Mr. Trump promises to close, the swamp creatures are already swarming around Washington lobbying to preserve the preferential tax breaks so beloved by their clients.
Keeping in mind that the Republicans in Congress are in bed with the business world, including the Trump Organization and the rest of the commercial real estate industry that depend on these exclusions and deductions, you know how this is going to turn out.
Given this enormous loss of tax revenues, where is the money for Mr. Trump’s trillion dollar infrastructure program that’s supposed to provide millions of jobs going to come from?
Meanwhile, the swamp creatures can also be found in the Trump administration itself spending your taxes.
The latest examples include Tom Price, the health and human services secretary, who resigned under pressure after racking up at least $400,000 for chartered flights, some of which appear to have been for personal, not government, purposes.
And Steve Mnuchin, who is still serving as Treasury secretary, tried to use a government plane for his European honeymoon on the pretext that he needed the plane’s secure communications.
Also, Scott Pruitt, the head of the Environmental Protection Agency, is moving into a $25,000 soundproof office-within-an-office, seemingly intended to shield him from climate science, where he will be scheming to eliminate existing protections that ensure the cleanliness of our air and water.
While all this is happening, the American citizens of Puerto Rico continue to suffer because of the inadequate response of the federal government to the devastation wreaked by Hurricane Maria.
Over the weekend, Mr. Trump, in his typical fashion, unleashed a deluge of tweets in a trademark attempt to deflect responsibility for his administration’s failure to provide adequate aid to Puerto Rico.
However, “his” three-star general has conceded that the federal government was not doing enough and that more personnel and resources were needed.
So even if you’re lucky enough to get a tax cut, you had better hold on to the money. More storms are coming, and you won’t be able to count on the federal government to help.
Jay N. Feldman
Port Washington
