The Republican tax law just signed by President Trump benefits most American taxpayers, at least until key provisions sunset. Those gains, however, still fall mostly to the wealthy.
That’s the conclusion of a look at the Tax Cuts and Jobs Act by the Tax Policy Center.
The good news is that there aren’t many who will pay higher taxes next year — about 8.5 million, compared to the some 143 million who will get lower taxes.
For the most popular bracket of what the Tax Policy Center calls expanded cash income level, the $50,000 to $75,000 range, will see an average tax change of $870.
Millionaires on average will get an extra $69,660 boost. Those with less than $10,000 will get an extra $10 to play with.
The percentage change also skews upward, with the best benefits accruing to the $500,000 to $1 million bracket. The $50,000-to-$75,000 bracket sees a 1.6% benefit.
Things change however once 2025 rolls around. If no change is made, what were tax cuts will become tax hikes, even relative to current law.
A majority of Americans in a decade’s time will then pay higher taxes, including 69.7% of the middle quintile.
Republicans insist that they will not let the individual tax cuts sunset. However, that could take the total cost of the bill to over $2 trillion over a decade, according to separate estimates from the Committee for a Responsible Federal Budget. The bill as currently written has a headline cost of $1.5 trillion, with the final cost shaved by over $400 billion if faster economic growth is spurred.
Tax Policy Center analyzed the law using what it calls tax units, which includes those that both file and (like spouses) don’t file taxes. Expanded cash income refers to cash income plus tax-exempt employee and employer contributions to health insurance and other fringe benefits, employer contributions to tax-preferred retirement accounts, income earned within retirement accounts, and food stamps.
The Joint Committee on Taxation, which is Congress’s independent number cruncher, came up with similar numbers. They found the average tax rate would fall to 19% from 20.7%. The tax rate for those with an adjusted gross income between $50,000 to $75,000 would see their tax rate fall to 13.5% from 14.8%.
#AdiosAmerica: Republicans (with Democrats) Are Selling Out America to Corporations to Decrease Living Standards
Since the turn of the 20th century, living standards became an important, almost central part to the progressive and labor movements of those times. Now it has become a mainstream of both parties to sell out your labor to lowest bidders in low and high paying jobs. Low paying jobs are being taken by low-wage immigrants protected by Democrats and the high-end jobs are brought in by bi-partisan means, and greatly boasted by Republicans.
This effort has crippled the middle-class for close to 30 years now and with the job market being already tightened by the looming threat of A.I., importing more workers, whether legal or illegal is decreasing the value of labor in America for each and American Citizen. Corporations and Businesses, who rely on keeping employee costs as low as possible generally don’t complain about these practices across the board, why would they?
Americans have an increasingly difficult task ahead of them with the mass illegal migration at the Southern Border but also the legal importation of immigrants through H1-b1 Visas. These challenges will increasingly change the look, heritage of this country. There is no incentive for either Government or Business to care about reigning in immigration to the benefit of the American worker, the bottom dollar line will look better anyways.
Soros Newest Investor Of Tesla Bonds
Tesla looks to have a new bond holder and it’s none other than George Soros. Whatever this mean, Soros has also taken a stake in Crypto-Currencies .
Zerohedge Reports: Amid Elon Musk’s darkest hour in late March – as his stocks and bonds tumbled in price – it seems there was at least one other billionaire willing to buy the ‘blood on the street’.
According to the latest 13Fs, George Soros’ investment firm took a $35 million stake in Tesla’s convertible bonds during the first three months of the year.
As a reminder, convertibles are hybrid securities, either bonds or preferred stock, that can be exchanged for a predetermined number of common shares. That effectively lets an investor participate in stock-price changes, but with the yield and greater security of a fixed-income instrument.
The March 2019 Converts bounced handsomely off those lows – tracking the stock’s divergent bounce – but in recent days has fallen back towards the lows, catching down to the straight bonds record low price.
“Racial Bias Education Day” To Close Down Starbucks Nationwide
Starbucks is going to the illogical extreme by taking an entire day to put their employees through what they call “Racial Bias Education Day”. Coming after a viral videos showed two men being arrested in a Starbucks in Philadelphia. Starbucks almost instantly gave into calls to do ‘something’ but will this really fix anything in a culture where ‘racism’ is more of a political talking point than an actual substantive conversation or debate.
CNBC Reports: Starbucks said Tuesday it will be closing all of its company-owned restaurants in the U.S. during the afternoon of May 29 to conduct a racial-bias education program.
“I’ve spent the last few days in Philadelphia with my leadership team listening to the community, learning what we did wrong and the steps we need to take to fix it,” Kevin Johnson, CEO of Starbucks, said in a statement Tuesday. “While this is not limited to Starbucks, we’re committed to being a part of the solution. Closing our stores for racial bias training is just one step in a journey that requires dedication from every level of our company and partnerships in our local communities.”