Tax Reform, Or Welfare For The Wealthiest: 5 Examples

While there is little doubt, our tax system, is far from perfect or ideal, and could benefit, significantly, from being improved, the introduction of the proposed legislation (or, at least, what we know, of these proposals), seem to indicate, it’s becoming, far more about politics, and self – interest/ personal agenda, rather than making a difference, for the better! In fact, recent polls have indicated, between two – thirds, and three – quarters, of Americans, do not support the way, this legislation, is proceeding. While President Trump, and the Republican Congressional leadership, continue to claim, this is middle- class, focused, tax reform, it appears to be, quite the contrary! Therefore, this article will attempt to briefly examine and consider, 5 examples, of whether, this is, actually, tax reform, or, rather, a sort of, welfare, for the wealthiest Americans!1. Estate tax: The present levels for paying the estate tax, is individuals, with estates exceeding $5.9 million, and couples over $11.8 million. Obviously, eliminating this, does nothing for the middle class, and only helps the wealthiest, 0.2% of Americans. There are slight differences between the proposal from the House of Representatives, which calls for eliminating it, completely, and the Senate’s, which calls for doubling the limits! While the proponents of this legislation, proclaim, its purpose, is fairness, they seem to be subsidizing the loss of tax revenue, with eliminating certain deductions, which presently, serve the best interests, of the middle class!

2. Eliminate the Alternative Minimum Tax (A.M.T.): While there are issues with this tax, once again, eliminating it completely, fails to recognize the original purpose, which was, to address, how some of the wealthiest individuals, took advantage of the tax code, in order to pay, nearly no taxes! Rather than eliminating this A.M.T., wouldn’t it be fairer, and more responsible, to recognize, there is a need to address the inflationary impacts of wages and earnings, and simply, increase the income levels, where the Alternative Minimum Tax, kicked – in?3. Corporate taxes: There is a need to encourage corporations to do more, to drive the economy, forward, but, there is little, to demonstrate, reducing corporate taxes, will achieve these objectives! It’s stated U.S. corporations pay a higher tax, than others do, in other countries, but, while the top – level of 35% may seem to indicate that, most major corporations, pay effective tax levels, far lower than that, by taking advantage of the system. If I hear, Trickle Down, one more time, I will explode, because, there has never been any indication, it achieves that results. In most cases, corporations make more profits, but don’t use those to hire more, or pay more wages.4. Eliminating state and local tax deductions: While states, which did not vote for President Trump, in most cases, have higher state and local taxes, most of these, also receive, far less, back from the federal government, in relation to what they pay, than those without these taxes. Eliminating these types of deductions, will dramatically, over – impact, certain states, and, thus, are unfair, especially to the middle class, in these states.

5. Health insurance mandate: After being rebuffed, in their attempt to repeal the Affordable Care Act, from its inception, continuously, the Republican majority, is now stating, they will eliminate the individual mandate, regarding Health Insurance, effectively destroying health care, as we know it. Not only will this take approximately 13 million people, off the health insurance rolls, it will have the effect of raising the rates, for all other insured people, because, when you take the healthiest out of the pool, rates increase for everyone else. In essence, this means giving tax breaks to the wealthiest, on the backs of the rest of us!Wake up America, because these politicians are, once again, trying to pull the wool, over your eyes! Just because it’s being called, Tax Reform, doesn’t mean it really is, but, perhaps, it’s another attempt, at Welfare, for the Wealthiest!