Saturday, April 8, 2017

#donthecon meets Tax Reform

Now that Trump has ordered Speaker Paul Ryan to put aside Trumpcare they’re moving on to “tax reform” also known as Tax Breaks for Millionaires. Fortunately for the rest of us failing to take away healthcare for millions of Americans makes this scheme a lot harder as one of the fig leaves they had planned to hide the budget busting effect of the tax breaks behind has been removed.

They’ve also run into trouble with big retailers like their corporate sponsor Walmart over Trump’s desire to apply a tax on goods at the border. The plan was to raise taxes on imports and use the money to both rebate exporters and lower taxes for millionaires. Walmart which imports 70% of its merchandise from China alone isn’t happy about that as you might imagine and has sent their army of lobbyists off to the halls of the Rayburn House Office Building with the message that they won’t stand for import tariffs. Of course the fact that it would have set off a trade war wasn’t enough.

Even Republicans in Congress can’t agree on where to focus the tax breaks. Some want to lower the top corporate tax rate, some want to lower the individual rate for top earners and some want to lower the rate charged on international businesses. Between the bust on saving billions by letting low income folks be sick and die and the Walton family putting their foot down has left the hapless Republicans in a bit of a tight spot.

Some talking heads in television and radio land suggest Speaker Ryan should reach out to Democrats for assistance passing a tax reform bill. I doubt Ryan’s ready to try that yet as it’s only two months into the Trump presidency and he’s probably going to  try to get his right flank, known as the “Freedom Caucus”, to march in step. Of course, since the Freedom Caucus is the group that sank Trumpcare he’s welcome to try.

#donthecon is more in tune with tax breaks for millionaires like himself, you can tell because during the presidential campaign he made big promises about healthcare but never put forth a plan whereas on taxes he’s actually put pen to paper and made concrete proposals. Basically his tax plan is if you’re a millionaire or billionaire you deserve a tax break, the little people like us, not so much.

One of the proposals being floated is to eliminate all itemized deductions except for home mortgages. While that would certainly streamline tax forms it will surely hurt those of us with large healthcare expenses not paid by insurance. Last year I was able to deduct $7750 in un-reimbursed healthcare expenses which saved me $1938 in taxes. Under the Trump/Ryan tax plan as proposed I’d lose that deduction and I’d be certain to pay higher taxes even if they lowered the overall rate a few points.

Are you ready for a tax plan where just like Trumpcare the benefits go to the wealthiest among us?

Published in the Seguin Gazette March 31, 2017

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