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.February 19, 2018
Trump’s budget cuts are part of his “American carnage” plan
A recent piece in the Miami Herald provides an excellent overview of the 10-year cost of the tax cuts passed by Republicans in Congress and signed into law by Donald Trump in December.
As in a previous article in this series, the lion’s share of the cuts are to the corporate and individual income tax rates, reducing them from 35% and 37% to 21% and 25%, respectively.
The Republican tax cuts will add at least $1.5 trillion to federal deficits by 2027, according to the nonpartisan Congressional Budget Office, and the Joint Committee on Taxation (JCT) says it will cost at least $2.1 trillion by that date.
The positive consequence of all that budget borrowing, which will add to the national debt, is that interest payments on the national debt—that is, on the public debt held by the public, on which we borrow to finance the deficit—will decline.
But it’s the individual cuts that are the most problematic.
The JCT concludes that the tax cuts will benefit the top 1% of income earners by an average of $8,100 per year, which sounds like a big deal.
But not if you compare it to the effect of the law’s other provisions on that group.
In another JCT analysis, the highest-earning 1% would receive $51,000 in tax cuts compared to other taxpayers. The difference is that those benefits would be spread out over a period of 10 years rather than concentrated in a single year.
More problematic are two other provisions, both in the House bill: (1) the changes in the income tax treatment of carried interest, the portion of the profits of privately held partnerships in which the partners are regular, full https://grandvenetianvallarta.com/whatsup-portscanner-crack-product-key-free-download-for-pc/
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