Trump and his pals in Congress love to tout the passage of the GOP tax bill. While most of us see it for the scam it is, the president continues to brag about its “success”, using the issue to pump up his frothing fans at campaign rallies across the country.
Taxes have long been the pet cause of those on the right, so why stop now? In the past few days Trump has pledged to enact more tax cuts, cuts that he claims will benefit the middle class. This is supposed to happen, conveniently, prior to the November 6 midterms. What the president fails to mention is that since Congress is in recess until after the election any promise of action on taxes is a flat out lie. But hey – take him seriously, not literally.
Back to reality. For the majority of Americans, the tax bill that was jammed through last December landed like a belly flop. Trump’s billionaire campaign contributors may be wallowing in their newfound wealth, but average citizens have been left short-changed. Even more alarming, in a new report released last week the Institute for Taxation and Economic Policy (ITEP) found that not only were the poor and middle class denied the windfall enjoyed by top earners, but the GOP tax cuts have exacerbated the racial wealth gap in the U.S.
Our friends at the Keystone Research Center and the PA Budget and Policy Center have analyzed the report. Here are their key findings:
After analyzing the ITEP report Stephen Herzenberg of Third and State wrote:
” the Tax Cut and Jobs Act increases economic inequality: it rewards existing White wealthy families at the expense of the economic security of households of color as well as at the expense of the middle class and poor. On average white households will receive over $2,000 in cuts compared to less than $1,000 for white Latino and Black households. The struggles families of color have accumulating wealth is one of the powerful ways that racial inequality in America gets transmitted across generations (because families cannot afford college, a house, retirement savings or to save enough to stop living paycheck to paycheck). In the future, the huge deficits resulting from this tax cut could also lead to reductions in spending that hurt middle- and lower-income families of all races and ethnicities, while also reducing economic growth.”
My analysis? It's time to get out and vote!
posted by Amy Levengood