The Lügenpresse (lying press) is trying to hide the impact of the Trumpian tax proposal under the guise that it’s “lacking in details.” Reality is quite different. The particulars are straightforward and rather simple. First and foremost, unless it’s offset with spending cuts, the plan adds about a half a trillion dollars a year to federal deficits. Apparently this will be covered with more money printing, which is why corporate raider (((Gary Cohn))) is being touted to replace (((Janet Yellen))). As he showed in his Greece project, Cohn is well versed in the fine art of securitizing and collateralizing (aka foreclosing) debt.
The New Nationalist’s (TNN) takeaway is that this tax plan is so pro-oligarch and so nasty that it will receive “bi-partisan” support. In fact, given America’s current faux-democracy political system, it wouldn’t be surprising if the worst elements of his plan end up being touted as among Donald “The Red Queen” Trump’s crowning legislative achievements. Although many Democrats allegedly oppose it, it will probably be passed in the dead of the night as a rider in a must-pass bill advocated for by teary-eyed (((Ivanka))) and/or Chelsea.
Most significantly, the plan slashes taxes for the top 1% of taxpayers. Heads of uber wealthy households raking in more than $440,000 a year will see their rate reduced to from 39.6% to 35%. Repeal of the alternative minimum tax saves even more for the 1%.
Those in the upper income bracket of $213,000-$417,000 per year get a rate reduction from 33% of earning to 25%. Yet, the 25% tax-rate bracket will remain the same for America’s core middle-income households earning $50,801 to $131,200 a year. But the standard deduction would be doubled, which would offer a break of a couple hundred bucks — crumbs for the poor.
Estate taxes are eliminated altogether. This benefits those inheriting more than $5.45 million, which is the current exclusion. The blue line in the wealth distribution chart below will go parabolic. Important distinction: This is the top 0.1%, not the 1%.
The corporate tax rate and the pass-through business tax is cut to 15%. The current rate structure produces a flat 34% tax rate on businesses earning from $335,000 to $10 million, gradually increasing to a flat rate of 35% on earnings above $18.3 million. The cost of this move is $3.7 trillion over 10 years. According to the Treasury, 43% of corporate tax is paid for by the top 1%.
Laying the Groundwork for Neo-Feudal Plundering
There is also talk of a territorial system with one-time tax on overseas profits. This is repatriation of profits parked overseas. This one-time tax was not revealed in the plan. The provision in the House Republicans’ tax blueprint is 8.75%. Trump mentioned a 10% rate during his campaign. TNN believes this corporate stash of $2.6 trillion will be instrumental in the bargain-basement privatization and collaterialized-foreclosure phase after the plug is pulled on the financial market bubble.