Treasury Department Flunkies Silence Study Showing Trump Tax Plan Won’t Do Crap for the Working Class


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.

3 thoughts on “Treasury Department Flunkies Silence Study Showing Trump Tax Plan Won’t Do Crap for the Working Class

  1. Chump-O-Gram says:

    “America First” is taking on a whole new twist as Republicans in Washington develop a $1.5 trillion tax cut that will benefit foreign investors more than middling US earners. https://qz.com/1109124/donald-trumps-tax-cuts-will-benefit-foreign-investors-more-than-the-us-middle-class/
    A new analysis by Steve Rosenthal of the Tax Policy Center finds that tax cuts benefiting foreigners who own stock in US companies will total about $70 billion a year. In contrast, middle-income households in the US will only see $23 billion in savings, according to his organization’s preliminary estimates.
    See “Slashing Corporate Taxes: Foreign Investors Are Surprise Winners” by Steven M. Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center https://www.taxnotes.com/tax-notes/corporate-taxation/slashing-corporate-taxes-foreign-investors-are-surprise-winners/2017/10/23/1x78l

  2. Working stiff says:

    Former Treasury Secretary Suggests Steve Mnuchin Is Being a Partisan Hack on Taxes :
    Either that or he’s being “ignorant.” https://www.vanityfair.com/news/2017/11/larry-summers-thinks-steve-mnuchin-is-one-of-historys-biggest-idiots “In order to push their tax-reform bill through by the end of the year, Republicans are leaning heavily on a series of claims that could be described as “alternative facts.” One is that the legislation—which disproportionately benefits the wealthy while in some cases raising taxes on the middle class—is all about average Americans. Another is that getting rid of the inheritance tax, which only affects multi-million-dollar estates, is relief intended for farmers. A third is that, according to Donald Trump, Donald Trump, would “get killed” financially by the plan. But the biggest whopper coming out of Team Trump and the G.O.P. may be the one about how their plan will not only unleash so much growth that tax cuts will pay for themselves, but that it will actually put a dent in the federal debt.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s