Mid-day on December 20, DJT tweeted, “We are delivering HISTORIC TAX RELIEF for the American people!” That was followed by a GIF showing a present opening with the words “Tax Cuts for Christmas!” bursting out of a box. This, I contend, is all a big “Christmas” hoax.
An Early Celebration
DJT and the Republicans in Congress celebrated “Christmas” five days early, after passing the “Tax Cuts and Jobs Act.” Then on Dec. 22, DJT signed the massive bill into law.
The vote on the tax reform bill was 51-48 in the Senate—all the Republicans against all the Democrats. In the House, the vote was 224 to 201 with all the Yes votes being by Republicans and the No votes being by all the Democrats and 12 Republicans.
How in the world could there be 249 Congresspeople opposed to what is touted as a wonderful Christmas gift to the USAmerican people? And why do most polls show that more Americans oppose the newly enacted bill than approve of it?
Yes, the “tax cuts for Christmas” were celebrated by DJT and the GOP days before Christmas this year. But one wonders how much celebration there will be by most USAmericans by next Christmas or in the years following.
It is evident that there are reasons for some to celebrate this new tax bill. Corporations are jubilant over the reduction of their tax rate from 35% to 21%, a huge drop—although many corporations already pay around 21%, or far less (see this report).
The wealthiest people in the land also celebrate the passing of the tax bill for several reasons. “Final Tax Bill Includes Huge Estate Tax Win For The Rich” is the title of a Dec. 21 article on Forbes.com.
Among other super-rich people in the country, DJT and the Trump family are, no doubt, celebrating their personal gain as well as their political gain from this bill. “Trump stands to save millions under new tax measure, experts say,” is a recent article in the Washington Post worth noting.
Last Wednesday DJT said, ““I promised the American people a big, beautiful tax cut for Christmas. With final passage of this legislation, that is exactly what they are getting.” Well, that’s at least true for Donald, Jr., Ivanka, and others of the Trump clan. They certainly have reason to celebrate. But many do not.
Who Won’t Celebrate?
There are many serious problems with the newly-passed tax bill, including (1) most likely a large increase in the national debt, (2) an increase in taxes for the poorest 1/3 of U.S. taxpayers, and (3) a large decrease in the number of people who have health insurance and a large increase in the cost for many who do have insurance.
While the numbers for the final bill are likely slightly different, the CBO Report of Nov. 26 indicated that the Senate version of the bill would show an increase in taxes for people (units) with income of less than $30,000—more than 1/3 of the taxpaying units.
By contrast, those with incomes of more than $100,000 –fewer than1/4 of filers—would get tax reductions of from 10.6% to 27.5%.
Those figures are for 2019. They get much worse for the poor and much better for the wealthy by 2025. (Here is the link to the PBS NewsHour article consulted.)
So, yes, the new tax bill seems to be a “hoax” as a Christmas present, especially for the poor. But the wealthy will fare well, as is cleverly depicted by this cartoon by Pulitzer Prize winning editorial cartoonist Jack Ohman: