TRUMP GOLDMAN TAX FAKE REFORM SCREWS ELDERLY LOWEST EARNERS BENEFITS IVANKA
ANYONE CALLING THIS TAX REFORM IS AN IDIOT. REPEAL AND REPLACE IS BACK…. this time its FAKE TAX REFORM. There is nothing about TRUMP’s FAKE TAX PLAN that alters IRS OR TAX COLLECTION IN ANY WAY. But it sure helps Trump and his 500 or so LLC company fronts. The “plan” or scheme rolls back some popular tax deductions while replacing them with new taxes. Its REPEAL REPLACE and its worthless. It does nothing to expand the Tax Base in fact it shrinks the tax base. But worse it is just like the phony Obamacare REPEAL and REPLACE plans, the underlying complex awful Tax Code just gets BIGGER and more Complicated. TRUMP GOLDMAN TAX FAKE REFORM SCREWS ELDERLY LOWEST EARNERS BENEFITS IVANKA. It ain’t reform… Its a fleecing! But but but, Ivanka WINS WINS WINS!
REPEAL AND REPLACE FAKE TAX REFORM IS NOTHING MORE THAN Robin Hood in Reverse. TRUMP FAMILY WINS YOU LOSE. What else is new?
Suppose you live in New Jersey and you pay high property taxes and income tax to the state. In the past you could deduct this State Tax from your income as a deduction on your Federal Return and get some partial benefit.
Additional to property taxes states have other taxes including income taxes or sales taxes. These could also reduce your Federal Tax Obligation marginally. Trump wants to eliminate these deduction while keeping the mortgage interest rate deduction. But that is laughable. The interest rate deduction on financing investments is the cost of the investment. So when Trump says he is “keeping that”, he shows tremendous ignorance in regard to finance and the tax code. Mortgage interest has nothing to do with State Taxes. Trump always wants to give the impression he is giving you something even while picking your pocket. That’s the Grifter way.
The highest income benefit the most because they get the largest marginal rate cut of all. Those in the middle class that are squeezed by state taxes get screwed.
Who does this hurt the most? Rich Get Richer the poor get poorer. Donald Trump and other billionaires who own most of the politicians will benefit the most. Is that surprising? This is RINO TAX SHIFTING.
It hurts Liberal voters in the North East as well as Chicago, some parts of the Midwest and California. These are States where liberals elect politicians that tax residents to death. This Trump Tax plan exploits heavily indebted Blue States that have the highest State Taxes.
It doesn’t hurt everyone because only the highest incomes that break through the the standard deduction get any relief with this. This would raise about $340 billion back to the Federal Government. It would be the upper middle class that would pay this. That is why this provision won’t pass. Two-faced liberal politicians like Senator Pocahontas from Massachusetts will vote against this so will any Republican RINO from Illinois or California. So its dead in the water.
Just look at this hodgepodge! The most important standout is that the lowest earners get hit the hardest under TrumpTAX-o-RAMA. The TRUMP Family does the best! Surprise Surprise! It’s not Tax reform its a good old fashioned fleecing by the Billionaires of everyone else.
If your ribbon is pink you lose. If you are Green you win and if you are yellow you stay the same. One thing is certain the lowest income earners get hit the hardest. The Rich’ins like Trump and his family get the most benefit. IVANKA IS GREEN! Grandma and Grandpa get screwed!
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Once this shift-o-Rama dies, the whole Trump Tax proposal dies.
This is because this is not Tax Reform. Tax Reform in name only. This is Fake Tax Reform or shifting the burden but never actually lowering Taxes or expanding the base. And even if Trump lowered Taxes and enlarged the base like Reagan, it wouldn’t work because Trump is spending like a Drunken Sailor so everything is financed by more debt. This is Bush III heading straight for another Bush Style Recession.
Trump’s budget is going to top out at over 4.5 Trillion. That is a Trillion more than Obama wasted in his last year. Trump is Obama spending on steroids. All tax cuts do in this instance is increase the deficits. Its RINO Time again. TRUMP IS THE BIGGEST GOV SPENDER IN HISTORY… HE topped OBAMA BY A WHOOPING 26% year over! This is why TRUMP will have to RAISE TAXES. He will become the next “READ MY LIPS…. lots of new TAXES!”
Consider Corporate Tax:
This is the one that Trump says will bring in businesses from all over the world and create millions of jobs. Fat Chance.
First Corporate tax cuts have never resulted in more job creation. They may result in higher CEO salaries but it doesn’t trickle down because there is very little benefit to most companies. Virtually no corporations pay 35% in tax unless they are poorly managed.
Secondly Corporate tax at 35% constitutes just 11% of all Tax collected by IRS. That’s nothing. By reducing the Corporate tax rate down to 20%, the collections will remain nearly the same because Corporations will not need to spend money on sheltering schemes. Remember you as an individuals can’t tax shelter but businesses can tax shelter and do.
Of Course Trump had promised a 15% Corporate tax rate. But he lied again. His talk is very cheap. But but but he said that was a “negotiating” strategy… He is just light years ahead of everyone else… in being an excuse making phony.
Even if he eliminated the Corporate Tax entirely, it would not trigger an influx of foreign multinationals. First this tax benefit could be rescinded at any time. It would take a large business five years to build a plant in the USA. If they did they would be mired down in government regulations from every agency both Federal and State. Their workforce would be lazy millennials. They would be attacked by Unions and they would be sued in every direction by tort lawyers. Further raw materials and transportation in the USA would cost 40% more than in Mexico or Asia. Wages would be 800% higher in the US. So why bother? They won’t.
Real Tax reform would be permanent but RINOs and liberals would never pass it.
It would be very simple. Make a Constitutional Amendment for a balanced budget except in times of Declared War or National Catastrophe. NOT A HURRICANE!
Secondly let Government spend 10% of the GDP as a Constitutional Amendment. Then nobody would care how they wasted it because they would get no more money. The money would be collected based on dollar transactions. That way IRS would handle the banking and transaction collections from businesses but leave the People the hell alone. That would vastly increase the tax base and reduce the burden to all.
That’s my idea of real tax reform. But it will never happen because it is too reasonable and too easy. Instead we have to go through this insane Repeal and Replace FAKE TAX REFORM idiocy in which all the underlying IRS machinery remains the same. That’s not tax reform. That is FAKE TAX REFORM and it never works. Its Repeal and Replace TrumpCrapCare all over again.
There is not much about the TRUMP Tax plan that will actually become law.
It is mostly cheap talk. Marginal rates will be jostled about but in the long run this is a huge windfall for the wealthy and not much else. The only provision which is not an actual provision is Trump’s claim to want to double the standard deduction. That and six dollars will get you a cup of coffee at Starbucks. This is the same kind of phrase such as,”You will be able to buy your major medical insurance across state lines.” The guy is a lying Grifter.
But our warning is straightforward.
If you are a Mom and Pop holding US Treasury Bonds, GET OUT NOW! If foreign money from Corporations holding income offshore is repatriated the bond market will CRASH. It won’t wait for the RINO tax reform to crash. Get Scared Early!” Nothing is more true than with Bonds this very moment.
This will trigger a very unstable situation. This will effect every industry. Borrowing money is about to become very expensive. Housing which is on life support will fold. Interest rates could double very rapidly. In the bond market this means demand will drop so bond prices will drop as the interest rates soar.
One scary thought is we have over 6 million new car owners that are 90 days behind on their payments now. This number can only grow and get worse as interest rates climb.
The Fed is raising interest rates at the moment. Janet Yellen did warn about the economy and consumer confidence has eroded. The Fed has 4.5 Trillion dollars on its balance sheet and it wants to cut that roughly in half. They will sell Treasuries to do it. Large Corporations like Apple have as much as $200 billion tied into Treasuries and related investments in offshore ledger transactions. The offshore money is really not offshore. It is here in America and it is mostly in US Treasuries.
Trump is planning some kind of taxing structure for the return of this money from offshore but has no detail as usual. He claims that the deferral of foreign earned income will be eliminated.
This may well be the trigger that causes large corporations to exit the United States especially if they make the bulk of their income overseas. Why be dealing with something like this which could be changed at will by the next democrat or RINO?
This is like Trump’s Amnesty. Its is all cheap Trump Talk and nothing is cheaper than that. We have 35 million Mexican squatters dumping 1500 Anchors a day and Trump has a lower deportation rate than Obama.
Trump has the attention span of a Goldfish.
Why do you think BANKS SOARED in the MARKETS Yesterday?
Interest Rates Stupid! Banks will be allowed to charge more for loans. This includes car loans, home improvement loans, mortgages and business credit. If interest rates soar the Stock market drops and commodities rise and the dollar falls. That is a mouthful but to any savvy investor the sounds you are hearing is them gasping for air. You can bet your last dollar that Goldman and Morgan were buying banks stocks weeks ago in anticipation of this announcement.
Once this train leaves the station; its the Rocket Train. Bottom Line MOMs and Pops time to EXIT THE BOND MARKETS.
This phony Goldman Tax Reform will fail. It will morph into a George Bush Chump Trump Change kind of tax rebate. Go buy some Trump Steaks with your windfall. Or buy some of Ivanka’s Chinese Clothing line.