Tuesday, January 29, 2019

The GOP cut your taxes and the Democrats are lying about it

You've probably heard the lie that the Republican tax cuts only benefited the very rich.

The reality is that 80% of all Americans and 91% of the middle class received tax cuts.

Those few whose taxes increased can generally blame Democrats for that.  One of the much needed reforms in the Trump tax bill was to cap the amount of State income tax payments that can be deducted to $10k.  Only rich people have to pay that much state income tax so you'd think that the Democrats would like it.

They don't because in Democrat states like California and Illinois with insanely high state tax rates even the very upper middle class people, and all the wealthy, are going to have to pay more taxes as a result.

For years the Democrats have been running a scam; they divert massive amounts of income that should go to the Federal government to their own local coffers.  People paying their huge state tax bills in those progressive havens didn't feel the pain because they got to deduct those massive payments from their Federal taxes. Which meant that the people of Texas and other low/no state tax states were paying more than their fair share of running the country while the folks in California and Illinois were supporting their local Democrat's schemes like reduce college tuition for illegals.

By capping the deduction at $10k Trump fixed that problem.  Naturally the Democrats can't actually say that most of the people who are now going to have to pay more Federal taxes are going to have to do so because of the monstrously high tax rates Democrats have imposed to fund their socialist fantasies so they, and many of their propagandists in the #FakeNews media, continue to lie about the Trump tax cut.

They also ignore that the 2018 tax revenues are a record high.  Basically the argument for cutting tax rates is that reducing the rates will increase the GDP because people will be more willing to invest and because consumers will have more money to spend. So if the GDP increases enough the tax revenues can increase even if the tax rates are lower because a lower rate on a larger amount can result in a larger return.

For example a tax rate of 70% on $100 will net the government $70. But a tax rate of 50% on $140 will also net the government $70.  Historically tax revenues have risen after tax cuts. The problem has been that our ruling class in DC has responded to increased revenue by increasing spending.

Now the Democrats are hell bent on drastically increasing your taxes.  For example the "medicare for all" that many Democrats are proposing will increase government spending by close to 100% and they can only be paid for with massive tax increases on all Americans; taxing the wealthy alone will not generate the necessary cash even if we assume that massively increasing the tax rates of the investor class doesn't drive down the GDP even though historically that has always been the case.

The Democrats are fascists who want to be able to spend the money you earn the way they want; mostly to pay off cronies and buy votes.  Remember that whenever you hear about a Democrat talking about increasing taxes; they think that they know better than you do how to spend the money you work so hard for.

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