Trust me! — Alex Wong/Getty Images
❝ Earlier this week, the Trump administration revealed its long-awaited tax plan, the broad strokes of which are massive tax cuts for people like…Donald Trump and corporate America, at the expense of low-income families and the middle class…Of course, even Team Trump and the G.O.P. know they can’t win support for the plan by just coming out and saying, Rich people, this one’s for you; sorry, we’re not sorry, peasants!, which is why they’ve been claiming their framework is all about helping the average American…Lying.
❝ …Until recently, a 2012 paper by the Office of Tax Analysis that could be found on the Treasury Department’s Web site found that “workers pay 18% of the corporate tax while owners of capital pay 82%,” with the nonpartisan Joint Committee on Taxation estimating that “capital bears 75% of the long-run corporate-tax burden, with labor paying the rest.” In other words, Treasury Secretary Steve Mnuchin’s claim that slashing the corporate tax rate would disproportionately benefit workers is, to use economic jargon, total bullshit. It’s the rich guys who disproportionately stand to save the most — by a lot.
Mnuchin does what you expect him to do: ❝ The Treasury Department has taken down that 2012 economic analysis that contradicts Secretary Steven Mnuchin’s argument that workers would benefit the most from a corporate income tax cut.
Asked about the curious case of a paper at odds with the administration’s point of view, a Treasury spokeswoman told the Journal, “The paper was a dated staff analysis from the previous administration. It does not represent our current thinking and analysis.”
There’s a surprise, eh? BTW, most surveys never find fewer than 75% of economics professionals agreeing with that paper – and not agreeing with creeps like Trump and Mnuchin.