Thanks to President Trump’s tax cuts and reforms 90% of American wage earners have a higher take-home pay this year.
Over 3 million working Americans have received Trump tax cut bonuses as a result of the Trump tax reform law.
But “Fauxahontas Walking Eagle” Elizabeth Warren wants to take that all away.
Elizabeth Warren told CNBC Democrats will end the Trump tax cuts if they take power in November.
Warren also proposed Americans pay a 90% income tax.
Sen. Elizabeth Warren, D-Mass., sat down with CNBC’s John Harwood to discuss an array of issues, from President Donald Trump to the economy.
Here, she talks about wanting to roll back the GOP tax cuts.
Q: If Democrats take the Congress, if you’re in the White House, or both, would you like to see these corporate tax cuts repealed?
A: Yeah, I really want to see them rolled back.
Q: Back to 35 percent?
A: Well, it’s not about the number. Here’s how I look at budgets and taxes are at the heart of this. A lot of people think they’re just numbers; they’re not. They are the expression of our values. The values of the Republican Party that passed those tax cuts are to give $1.5 trillion away to the richest Americans and the biggest corporations, and let everybody else pick up the crumbs.
I think the right way to think about this is that we need a budget, we need a tax bill that works for all of us. So what I’d like to see is I’d like to see us strengthen America’s middle class.
Q: What’s too high for the top personal rate?
A: It’s not about a number. That’s what negotiations are all about.
Q: Is 50 percent obviously too high?
A: That’s why you sit down and you negotiate over the numbers.
Q: When George W. Bush was president, his team articulated the view that it was a matter of right and wrong that you shouldn’t have more than a third of your income taken. Do you feel similarly that it’s wrong for more than half of somebody’s marginal income to be taken?
A: Look, there was a time in a very prosperous America — an America that was growing a middle class, an America in which working families were doing better generation after generation after generation — where the top marginal rate was well above 50 percent.
Q: Ninety percent.
A: That’s exactly right. But for me, the heart of the question is that you’ve got to ask, “What constitutes a fair share in this economy?” It depends in part on what the economy is.
Q: It doesn’t strike you as obviously, “no, 90 percent, that’s ridiculous. Can’t be that”?
A: Ninety percent, yes; 90 percent sounds pretty shockingly high. But what I’m trying to get at is this is not about negotiating over specific numbers. It’s not about negotiating before you go into the negotiations.
As we reported, Congressional Democrats released a detailed tax hike plan that they promised to implement if given majority control of the House and Senate after the 2018 midterm elections.
So much for the crocodile tears about the deficit–Democrats want to raise taxes not to reduce the debt, but rather to spend that tax hike money on boondoggle projects, Forbes reports.
As you might expect, hold onto your wallets. Here are the details:
Increase the top marginal income tax rate from 37 percent to 39.6 percent. This nearly 3 percentage point increase in the top personal rate is not only a hike in the top bracket levy, but it’s also a direct tax increase on small and mid-sized businesses. The 30 million companies which are organized as sole proprietorships, partnerships, Subchapter-S corporations, and LLCs pay their business taxes on their owners’ 1040 personal tax returns. Hiking the top tax rate is a small business tax increase.
Increasing personal income taxes would be particularly unfortunate since workers are now seeing the results of lower rates in their paychecks. Thanks to the new IRS withholding tables, in February of this year over 90 percent of workers saw higher take home pay in the form of fatter direct deposits (for a humorous spectacle of the New York Times desperately trying to get people to down-talk their bigger paychecks, click here). They will continue to see those bigger paydays for as long as the tax rates in law remain in effect. This higher tax home pay is a down payment on a lower tax liability. Typical families of four should see their federal income tax decline from $2000 to $4000, depending on their income level and number of children.
Increase the corporate income tax rate from 21 percent to 25 percent. Up until this year, the United States labored under the highest corporate income tax rate in the developed world. As a result, jobs and capital were fleeing America for more normal tax rates that could be found in tax havens like France and China (saracasm font very much activated). Finally, after many years of bipartisan consensus that the U.S. corporate rate had become an impediment to attracting new jobs and investment, Congress cut the rate all the way from 35 to 21 percent. Even doing that only puts us in the middle of the pack of developed nations, but that’s a heck of a lot better than dead last.
As a result of this change, companies like Fiat Chrysler, Amgen, and Amicus Therapeutics (among many others) have announced new factories and jobs would be built in America, not in other countries. Americans for Tax Reform keeps a running list of tax cut bonuses, raises, 401(k) match increases, and other benefits companies are passing along to workers as a result of this tax cut. The current number as of this writing is 431 companies and over 4 million workers. Just yesterday, Cox Enterprises announced bonuses of up to $2000 for 55,000 of their workers. Walmart and Wells Fargo have announced permanent wage hikes for all employees, notably those on the lowest rung of the ladder. Electric and other utility bills are going down in states all across the country.
Not content to endanger all that good news, the Democrat tax increase goes on to call for the following:
Bring back the alternative minimum tax (AMT) for 4 million families. Up until this year, 4 million upper middle class families had to calculate their income taxes two different ways, and then pay the higher result. This was due to a provision of the law known as the “alternative minimum tax” or AMT. Millions more had to at least pay a tax preparer to run the calculation, even if they didn’t end up paying the AMT. The new tax law all but repealed the AMT for 99 percent of these families thanks to a higher AMT “standard deduction.” Congressional Democrats would bring back the dreaded AMT, which especially hit hard two-income white collar families with kids in New York, New Jersey, and California.
Cut the “death tax” standard deduction in half. Over the past few decades, no tax has proven more unpopular in every single poll than the death tax, the federal tax on estates. 60 to 70 percent of poll respondents consistently call for its full repeal. The new tax law didn’t repeal the death tax, but it did the next best thing–it doubled the death tax’s “standard deduction” from $5.5 million to $11 million (and twice that for surviving spouses). As a result, far fewer family businesses and farms will be subject to the death tax, and many smaller firms can shed the costly insurance, legal, and actuarial costs of avoiding the death tax. Like the top personal rate, the death tax is not something that really affects the rich, who have plenty of resources to avoid the levy. Rather, it hits hardest those companies profitable enough to worry about it but not profitable enough to not worry about, if you catch my meaning. Democrats have never understood this, which is why it’s not surprising they want to reduce the death tax’s standard deduction back down to what it was before.
All of this is very confusing given that the new tax law is supported by a plurality of the American people (the New York Times reports it’s actually a majority) and is growing in popularity. A good chunk of people haven’t even yet realized they’ve received a tax cut, so the favorable numbers should continue to grow. Maybe that’s why a Democrat pollster and strategist recently wrote:
Since the passage of the Republicans’ tax bill, and even before it, Democrats have been losing the messaging war. Now that many Americans are seeing the results in their paystubs, it’s even harder for Democrats to make this a winning issue. Voters are seeing the bill’s positive impact and are not likely to oppose it because we tell them they’re not benefiting, and many voters who aren’t seeing the impact still support the bill. If Democrats want to continue using this bill as a major issue for November, we need a new messaging strategy.
Instead of figuring out how to raise taxes, Congressional Democrats would do better to work in a bipartisan manner to make the middle class and pro-jobs tax relief just passed into law permanent. A rising tide lifts all boats.
James E Windsor, Overpasses News Desk
July 24th, 2018