And their shareholders…

Don’t get me wrong, I think the recent tax reform act was ill conceived given its impact on the deficit and debt, but to criticize it as only a windfall for big business and the wealthy is misleading IMO.

New York Times 12-30-19 on tax reform and big business:

“… Corporate executives, major investors and the wealthiest Americans hailed the tax cuts as a once-in-a-generation boon not only to their own fortunes but also to the United States economy.

But big companies wanted more — and, not long after the bill became law in December 2017, the Trump administration began transforming the tax package into a greater windfall for the world’s largest corporations and their shareholders. The tax bills of many big companies have ended up even smaller than what was anticipated when the president signed the bill…”

It’s the “and their shareholders” part that creates the impression that only a select group of Americans benefited. Shareholders of America’s largest corporations include everyone who has a pension, a 401k, 403b, 457, IRA, HSA, 529 or who invests in a brokerage account.

Retirement plans alone include 137 million working adults (including virtually all state and local government employees).

3 comments

  1. From what I googled, some small businesses and farmers also got some tax breaks. The big bank corporations also got some tax breaks so hopefully they will slow down increases in their banking fees since rates are still too low. My personal tax rate dropped until at least 2025 and for that I am grateful.

    I also know sooner or later, we have to pay the down national debt so I am enjoying while I can.

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  2. Increased taxation of corporations just drives up the cost of the products and services that they sell. What is needed are government spending cuts. When i retired from the USAF in 1995 the DoD budget was 499 Billion dollars adjusted to 2019 dollars. The 2020 DoD Budget just passed is 738 billion dollars. That is a 47% increase above inflation over the last 25 years. The USA spends more on WAR than the next 10 countries combined, that is CRAZY! Our politicians are adding billions of dollars to the national debt every day. I think it is time for a freeze in government spending at all levels to include COLAs for at least the next 10 years. I know that the $49 per month COLA I just received is not going to change my standard of living and I will not miss any meals if it was zero. The best time to do this is when we have low inflation. I know this will not happen, because we have politicians who are afraid if they stop spending that they will not get reelected. I believe if the USA continues on the current course of deficit spending it is going to cause a depression far worse than the 1930s. Or worse case for all future taxpayers to have to pay 30 to 50 percent tax rates.

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