The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Wednesday, April 26, 2017

Trump Tax Plan? Trickle-Down Again (Video)

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                 TRICKLE-DOWN

Pacific Standard Mag


The IMF Confirms That ‘Trickle-Down’ Economics Is, Indeed, a Joke

Like, a literal joke.

Excerpt
“money was all appropriated for the top in the hopes it would trickle down to the needy.”
American humorist Will Rogers, who mocked President Herbert Hoover’s Depression-era recovery efforts, saying that “money was all appropriated for the top in the hopes it would trickle down to the needy.” 
At the center of Reagan’s economic doctrine was the idea that economic gains primarily benefiting the wealthy — investors, businesses, entrepreneurs, and the like — will “trickle-down” to poorer members of society, creating new opportunities for the economically disadvantaged to attain a better standard of living. Prosperity for the rich leads to prosperity for all, the logic goes, so let’s hurry up with those tax cuts already.....
Read More (Linked above)

This past January the nation embarked on a tightrope experience of Trump as the 45th President of the nation.  In addition to many promises which equal the carnival barking lies of any cheap traveling carnival, he focused on a couple of promises which carry real danger for the nation. One such promise was the tried and failed Republican paradigm of promulgating tax policies which without question favor wealthy Americans and corporations. While many suspected the worse in a Trump tax plan, It appears Trump and his economic ministers have surprised even their cohorts among the GOP members of Congress.

As Trump was being inaugurated, a few social media and print media sources published articles based on their knowledge of Trump's spoken components of a tax reduction plan. One consideration is certain. I don't believe anyone forecast Trump proposing a tax rate of 15% for taxpayers and corporations.

January 2017


Janaury 2017 Center For Budget Policy Priorities

Trump Tax Plan Gives Big Tax Cut to the Top

House Republican "Better Way" Tax Plan Gives Big Tax Cut to the Top
Ugly, eh? 

Three months later and with Trump's cherish 100-day barometer, Trump has released his tax plan.  Yet, he hasn't released his past taxes for pubic review as has all presidents (back) through Richard Nixon.

Well, here it is (see video below). Trump's tax plan and I will wager not one surprise for those who don't trust Republicans with the US economy. I will also wager there is no surprise Trump's tax plan offers a form of neo-Trickle down (Supply Side) policy which favors the wealthy tax proposal provisions. What should surprise is the audacity to propose such reduced tax rates at a time when it seems Trump is chopping at the bits to engage US forces in wars? Do you recall The George W. Bush Great Recession formula for wrecking the US economy (after Bill Clinton)? The formula was:
1. reduced financial regulation. (Clinton and Bush): Sub-Prime Bubble
2. major tax cuts.
3. two Bush wars. 
The economic world changed as the Bush Bubble came falling down like Bush in the stands at the China Olympics (totally inebriated).

Trump's economic ministers




For those who abstained for viewing the 28-minute video, Kevin Drum developed a piece for Mother Jones with a basic (non-detailed) opinion review. No one has complete details of Trump's tax plan but Drum captured enough of the plan for validation of another trickle-down on steroids plan.

Trump Tax Plan Unveiled
There's a little more than you see in the tweet above:
Three tax brackets instead of seven. However, there's no telling how this affects taxes until Steve Mnuchin tells us where the cutoff points are.
Doubles the personal exemption from $12,000 to $24,000. This will help middle-class families, but it's a little hard to know how much it will help them until we get details on....
Elimination of itemized deductions. Which ones? All of them? Good luck with that. But you can be sure that one of the targets will be the deduction for state income taxes, since that mostly benefits the hated blue states of California and New York.
Elimination of the estate tax. A huge boon for the super-duper rich.
Elimination of the AMT. A huge boon for the rich.
Elimination of Obamacare's 3.8 percent tax on investment. A huge boon for the rich.
Reduce business tax rate to 15 percent. A huge boon for corporations and the rich, especially those with income from pass-through businesses. Apparently Mnuchin doesn't care that Senate rules make this almost literally unpassable.
Tax repatriation holiday. A huge boon for corporations and the rich.
Territorial taxation system for corporations. There's no telling what effect this would have. There are good territorial systems and bad ones. It's all in the details—though it's a pretty good guess that Trump will opt for one of the bad ones.
The driving force behind this appears to be Trump's desire to call this the biggest tax cut in American history. 




As one would expect, CNN loaded its afternoon programming with enough panel members to embarrass an Arkansas farmers chicken coup Another expectation would find a discredited Right Wing economic shill, Steven Moore, sitting on the panel ready to spew GOP talking points (AKA political bull crap). The session ended with another economic contributor taking Moore's Trump facilitation to task. Link.

MMFA on Moore and CNN's poor decision to place him on their shows.



The man is a class facilitator of bad economics.

MSNBC's AIi Velshi also devoted air time to a Republican carry a pail of Trump B/S.  Link.

I digress...back to Trump's tax plan.

We have a president sitting atop a party (while occupying the White House) who has never shown a propensity for caring about Americans who earn less than millions per year. He has surrounded himself with both billionaires (certain advisers and cabinet members) who can't fathom life in America without a country club membership. Actually, I would be surprised if joining Trump's Cabinet came with a prerequisite for membership at Mar-A-Lago.

If you believe Trump and company will propose a tax plan which will be fair and equitable across the economic income strata, you are a Trump enabler.

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