In support of his specious ‘tax reform’ (simply tax cuts) bill, the president slung this piece of nonsense about the effects of his plan in his ‘1600 Daily’ email newsletter:

The Unified Framework for Tax Reform that is supported by President Trump will mean hardworking Americans can keep more of their money. The average American household income could increase between $4,000 and $9,000 a year in wages and salary alone by cutting the Federal corporate income tax rate from 35 percent to 20 percent, according to an analysis by the Council of Economic Advisors (CEA). “Lower taxes on American business means higher wages for American workers, and it means more products made right here in the USA.” – President Donald J. Trump

He’s a business man…he knows damn well that tax cuts for businesses won’t mean that employers will pass through the savings as increased wages. No way, no how. Wages go up as the competition for labor goes up. Greedy business owners will pocket the difference. So this is a load of hogwash.

2 Responses to Another Utterly Ridiculous Claim for Tax Cuts

  1. I agree with the overall premise of your post, but I have trouble accepting the proposition that Trump “knows damn well” that is is unlikely to help workers. I don’t think he knows or care about anything but he fragile ego. We can’t change that. It won’t change.

    People like Sensenbrenner and Ryan DO know, however and we CAN change whether they are our representatives in Congress. Let’s focus on their votes and hammer, hammer, hammer them with that for the next 13 months.

    • onevote says:

      Wish we could return to the idea of progressive taxation, a plain, rational idea. It should apply to all forms of taxation, whether corporate, individual, as well as estate.

      Academic studies have time and time-again observed that tax cuts do not promote a healthy economy, it just redistributes the wealth to the already rich, while placing the tax onus of absolutely-needed tax revenue on the middle and lower classes.

      Not a difficult idea to grasp, unless you choose to ignore our economic reality.

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