The tax cut being considered by the President is intended to reduce capital gains taxes for those who sell capital assets (property or investments). Income inequality, already at record levels, will increase yet again since they are considering only tax cuts for the wealthy. For those of us who work for a paycheck and do not have (much less sell) capital assets there is no benefit.
US tax revenue will be reduced by $100 billion dollars, adding to the budget deficit, which was increased to $1.5 trillion by the 2017 tax cuts. You and your children will pay for this gift to the wealthy. These additional tax cuts can only be balanced by cuts in Federal spending on the favorite Republican whipping boys: Social Security, Medicare and Medicaid.
Proponents argue that this tax cut will generate a sell-off and drive the stock market up, so wage earners and the middle class will benefit. The same argument was used in selling the 2017 Republican tax cut for businesses from 35% to 20%. A boon for corporations, that windfall resulted increased profitability which was used for stock buy-backs, not wage increases. In 2017 average wages increased about 1.75%.
This tax cut is deliberately targeted and timed to please the donor class as we go into the midterm elections.Read More