Well, on the most wonderful day of the year (if you are wealthy) our friend Stephanie Ruhle takes us back in time to review the promises Trump and his GOP friends made about this fabulous new tax plan that got passed. Let's see how their claims match up to reality.
1. Donny swore the middle class was going to be the biggest beneficiary of this plan.
NOPE. Most gains for the middle class were small, and go away by 2026. Corporate America, however, got much higher gains in this plan, and their benefits were made permanent.
2. Trump insisted the rich would get nothing from this tax plan. N.O.T.H.I.N.G. Least of all, himself. Trump would gain nothing from this plan.
BWAH. The top rate for the highest earners dropped to 37%, giving them an average one-year break of $287,000. (You could hire at least 5 teachers for that one average person's tax break.) Furthermore, there were huge tax cuts for pass-through businesses that have lots of real estate holdings. Remind you of anyone?
3. Steven Mnuchin promised the tax plan not only pays for itself, but pays down debt.
AS IF. Ruhle points out that it adds $1 trillion to the deficit, and even factoring in growth, does not pay down the debt. Here is a chart if you're like me, and you constantly need a primer on what the difference between the deficit and the debt is:
4. Since Trump needs everything in his life to be the biggest and best, he swears his tax cut (.9%) is OF COURSE the biggest in the history of the United States!
EXCEPT, Ruhle tells us, for Barack Obama's in 2013 (1.9%) and Ronald Reagan's in 1981 (2.9%.) But, you know. Who needs truth?
5. Paul Ryan made a big deal about promising people will be able to do their taxes on a form as small as a post card!
UNLESS...you aren't taking the standard deductions. In fairness, more people will take the standard deduction, because it was doubled. However, for the rest of us, the tax code is MUCH more complex because of an additional layer of new tax loopholes and glitches that will make our tax seasons even more of a nightmare.
So. There you have it. Thanks, Stephanie!
Oh, and you know those bonuses big companies gave to workers as a result of the tax plan? Trump is so proud of throwing around as evidence of his genius, and understanding of corporate generosity. Well, according to USA Today, only 45 of the 500 companies that make up the S&P 500 actually gave bonuses to their workers. Only 37 of the 500 companies increased wages for its workers. Only 30 of the 500 companies boosted 401K and other compensation benefits, and only around 20 of the 500 increased perks like parental leave.
Yeah. So, have fun filing those taxes.