As Donald Trump and the GOP swagger like they’ve won a mandate — despite losing the popular vote by over 2.8 million — Democrats in Congress are planning a full frontal assault on their toxic agenda, starting with Trump’s tax plan.
‘Congressional Democrats say they’ll try to thwart Republican plans to overhaul the U.S. tax code by portraying them as a boon for the rich that betrays President-elect Donald Trump’s campaign promise to fight for working Americans.’
“There’s going to be opposition if these tax cuts are directed to the people at the top again,” declared Rep. Richard Neil (D-Mass.). After all, Mein Trumpf ran as a champion of the white working class. Even now, his “Contract with the American Voter” claims his tax proposal will help businesses create jobs and that “the largest tax reductions are for the middle class.”
Now, Democrats are calling Donald Trump out on these claims. Rep. Keith Ellison (D-Minn.) declared:
‘His populist image and the reality of his policies are on a collision course, and they’re going to crash.’
As the top Democrat on the House’s powerful Ways and Means Committee, which hashes out all tax legislation, Richard Neil stands on the first line of defense.
‘Neal and others say they’ll zero in on upper-income tax breaks pitched by Trump and House leaders in an attempt to make it politically difficult for Republicans to support large parts of the emerging plans. Their initial comments suggest that the 115th Congress, which convenes Jan. 3 with a Republican-led agenda of instituting a broad tax overhaul and repealing Obamacare, will be peppered with debate over income inequality.’
House and Senate Democrats will need to dig in for a long slog in the trenches, given the radical overhaul the GOP is plotting. This goes beyond Donald Trump’s tax plan, which would severely punish single mothers and the poor while handing more tax cuts to millionaires. House Speaker Paul Ryan (R-Wisc.) has already set out to repeal Obamacare, privatize Medicare, gut social security, and slash nearly 500,000 teaching jobs.
Paul Ryan’s and Donald Trump’s tax plans may differ in various ways, but they agree on reducing individual tax brackets from seven to three, cutting tax rates across the board, lowering the top bracket’s tax rat from 39.6 percent to 33 percent, and eliminating the Estate Tax. Although the GOP calls it “the death tax,” Bloomberg points out the estate tax:
‘currently applies only to estates worth more than $5.45 million for individuals and $10.9 million for couples. Data from the Internal Revenue Service and the U.S. Census Bureau show that far less than one percent of the people who die each year pay any estate tax.’
As for the folks in that top tax bracket who would pay only 33 percent, only those with incomes “well within the top one percent” will get that special rate. Even worse, Donald Trump’s tax plan packs in all kinds of goodies for corporations. According to Forbes:
‘Trump wants to cut the corporate income tax rate by more than half, to 15%, and make that available to the half of all US businesses that are not in corporate form.’
The current corporate income tax rate is 35 percent (39 percent, counting state and local taxes). This seems high, but thanks to write-offs and corporate tax dodging, corporations rarely (if ever) pay that rate. As Bernie Sanders has pointed out, back when America was still “great,” according to Trump supporters, corporations paid a lot more in taxes than they do now.
‘In 1952, the corporate income tax accounted for 33 percent of all federal tax revenue. Today, despite record-breaking profits, corporate taxes bring in less than 9 percent.
Let’s all hope the Democrats prove as good at obstructing things as the Republicans have been.
Watch: The TYT Network breaks down Donald Trump’s tax plan.
Featured image: Drew Angerer via Getty Images.