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Tax Cuts and Jobs Act question.

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Id82:
I was reading the Wiki article about the Tax cuts and Jobs act of 2017 and came across this line of information:

In 2027, if the tax cuts are paid for by spending cuts borne evenly by all families, after-tax income would be 3.0% higher for the top 0.1%, 1.5% higher for the top 10%, -0.6% for the middle 40% (30th to 70th percentile) and -2.0% for the bottom 50%

Does that mean that the lowest income workers will be owing more in taxes by 2027 than the highest income workers who will receive a three percent hike in their income?

I've been trying to understand the Tax Cuts and Jobs act effect on the economy after a conservative friend on facebook said that these tax increase stories that people have been tweeting are fake news since he earned a lot back in taxes this year. (I know he sounds like an idiot because of course since it's not happening to him that means it's not happening to everyone else.)
Can someone summarize the goods and bads of this act so far to an idiot like me and explain where it's going?

dpareja:
It was a huge tax cut for rich people and corporations. Everyone else gets fucked.

Not only that, but instead of reinvesting in their companies to create jobs, said rich people and (especially) corporations used the money on stock buybacks to inflate stock prices (which used to be illegal until Reagan, since it's a form of market manipulation which has no bearing on how the company's actually doing), which in turn inflates CEO compensation, since that's often linked to stock prices.

As I've heard it put, this wasn't a tax reform bill, it was reparations to the rich for the crime of the New Deal.

As for the tax increase stories, probably part of it is an attempt to correct overwithholding, leading to people getting more on their paycheques but less on their refund (if anything).

But in a few years federal taxes will go up for most people, and the rich will continue to tell the middle class to blame the working class (especially undocumented immigrants) for their problems, and said rich will run out the door with all the money.

The bill is class warfare, plain and simple: class warfare waged by the rich on everyone else.

ironbite:
AIN'T IT GREAT!

Ironbite-the MAGAtards are just now figuring this out btw.

DarkPhoenix:

--- Quote from: Id82 on February 08, 2019, 05:10:43 pm ---In 2027, if the tax cuts are paid for by spending cuts borne evenly by all families, after-tax income would be 3.0% higher for the top 0.1%, 1.5% higher for the top 10%, -0.6% for the middle 40% (30th to 70th percentile) and -2.0% for the bottom 50%

Does that mean that the lowest income workers will be owing more in taxes by 2027 than the highest income workers who will receive a three percent hike in their income?

--- End quote ---

Yep.  This was the Republican plan all along; it slightly drops tax rates for everyone for a short time (but as you're seeing from the screaming people, thanks to erasing certain deductions and capping others, that may not be the case for everyone), but after 2021 the tax rates start INCREASING on the poor and middle class, maxing out in 2027.  And don't think that 2021 date is a coincidence; they picked that date SPECIFICALLY so that if there's a Democratic President, they can start accusing him/her of raising taxes - despite it being THEIR tax bill doing it!

dpareja:

--- Quote from: DarkPhoenix on February 12, 2019, 07:12:04 pm ---
--- Quote from: Id82 on February 08, 2019, 05:10:43 pm ---In 2027, if the tax cuts are paid for by spending cuts borne evenly by all families, after-tax income would be 3.0% higher for the top 0.1%, 1.5% higher for the top 10%, -0.6% for the middle 40% (30th to 70th percentile) and -2.0% for the bottom 50%

Does that mean that the lowest income workers will be owing more in taxes by 2027 than the highest income workers who will receive a three percent hike in their income?

--- End quote ---

Yep.  This was the Republican plan all along; it slightly drops tax rates for everyone for a short time (but as you're seeing from the screaming people, thanks to erasing certain deductions and capping others, that may not be the case for everyone), but after 2021 the tax rates start INCREASING on the poor and middle class, maxing out in 2027.  And don't think that 2021 date is a coincidence; they picked that date SPECIFICALLY so that if there's a Democratic President, they can start accusing him/her of raising taxes - despite it being THEIR tax bill doing it!

--- End quote ---

The one bit of good news is that if the Dems can take the Presidency, hold the House, and somehow retake the Senate (and I think there are quite a few good targets), they can ram a reversal through with reconciliation.

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