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Republicans are continuing to tout their recent windfall handout to wealthy Americans as a “middle class tax cut.” Faux-president Donald Trump – as expected – talked about it in his State of the Union last night, as well as bragging (again) about the rise in the stock market during his presidency.
Republicans are continuing to tout their recent windfall handout to wealthy Americans as a “middle class tax cut.” Faux-president Donald Trump – as expected – talked about it in his State of the Union last night, as well as bragging (again) about the rise in the stock market during his presidency.
"The
great news for Americans: 401(k) retirement, pension, and college savings
accounts have gone through the roof. And just as I promised the American people
from this podium 11 months ago, we enacted the biggest tax cuts and reforms in
American history. Our massive tax cuts provide tremendous relief for the middle
class and small businesses to lower tax rates for hard-working Americans."
That’s what he said, but here are some real facts:
A post-SOTU panelist who happens to be a Republican said last
night that 44% of Americans don't have $400 available in case of emergency, and
67% don't have $1,000 in a savings account. The small increases many of them will
realize from the tax bill will do little to improve their overall, long-term financial
condition, not to mention that these savings are temporary and will expire in
seven years while corporate tax breaks are permanent.
As to the stock market, it’s reported that of those people earning $25,000 a year or less, only 8% own stocks. “Meanwhile,”
according to CNN Money, “88% of those making more than $1 million are in the
market, which explains why the rising stock market tracks with increasing levels
of (income) inequality.”
On average across the United States, only 18.7% of taxpayers
directly own stocks, not including investments made by their employers into
retirement plans. Access to employer-sponsored retirement plans leans heavily
toward higher income white people (what a shock!) and away from blacks and Latinos,
and, of course, favors older people rather than the young.
Trump also likes to brag that because of tax reform, American
companies are handing out bonuses, hiring more people and expanding their
businesses. Some are, that’s true. But consider the reality of the situation:
* With regard to bonuses, an employee who is underpaid may
enjoy a $1,000 windfall that he can apply to his mortgage or make a couple of car
payments or even celebrate by buying a boat or a big-screen TV, but when that money is gone, he’s still an underpaid employee.
* On the hiring front, if Walmart announces plans to hire several
thousand people and Sam’s Club closes 63 stores, putting thousands of others
out of work, is that really a net gain?
* And business expansion? Trump loves to talk about Apple’s plan to invest $350 billion in America, and hire another 20,000 workers.” Truth
is, Apple does plan to make a much smaller investment, but the greater number
represents company sales over the next five years. In other words, most of the
money Apple will be “contributing to the economy” will be money it earns by
selling stuff to you and me. Ask yourself who benefits most from that? Also,
for every company that Trump brags about, there are others he ignores, like
Harley-Davidson shutting down its Kansas City plant and cutting 800 jobs, or
Carrier laying off more of the workers whose jobs Trump had promised to save.
Look, I’m no accountant or economist, and financial reporting has never been
my strong suit, so I have to depend on others to explain to me what’s going on,
especially when the person throwing out the economic statistics is a
pathological liar who claims to be a business genius but has proven throughout
his bankruptcy-tainted career to be anything but. For that reason, there’s not
much more I can write about this subject.
I have, however, accrued some
knowledge over the course of 68 years by watching my own financial condition
rise and fall, and while I consider myself fortunate that as of today I do have access to $400 should I need it
in an emergency and I do have $1,000
in a savings account, I consider that to be a temporary situation that could
very easily change.
Unlike the Republican Party, I also worry about those millions
of Americans who don’t have money to live on, let alone a savings account or a fall-back
plan if things go any further south. So please don’t try to tell me this
"middle class tax cut" is ever going to trickle down to them, because
I'm not as stupid as the people who still support Donald Trump.
If anything trickles down on these people, it isn’t going to
be a pile of gold.







