Tax plan adds debt to already large deficit
Received Dec. 20
Republicans and the corporate owned news media constantly tout the near doubling of the standard deduction from $12,600 to $24,000 for a married couple. What they aren’t telling you is that you also lose personal exemptions of $4,050 per person. So instead of getting an increased deduction of $11,400 they will only get an additional $3,300 deduction.
Married with one child means you lose an additional personal exemption so that your taxable income will increase by $750. The more children you have the more you lose. This additional income is supposed to be offset by increases to the child tax credit. Bottom line, the hype for the standard deduction isn’t going to net much of a benefit.
The $1.4 trillion price tag for additional debt from the tax cuts is equally misleading. It’s based on the assumption that we will have uninterrupted growth for ten years at annual GDP growth rates America hasn’t realized in decades.
The current economic expansion is 104 months long. Our longest economic expansion was 120 months. The odds of this expansion going another 120 months are nil. Depending on the severity of the next recession, the actual cost of this tax bill could easily be two or three times the $1.4 trillion. The economic drag of adding this much debt to our already large annual deficits will be substantial.
Most of the benefit of this tax cut will go to corporations and corporations own almost all of our news media. They are misleading us.
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