Tax debate: Left vs Right. Who is deceiving us?

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from The Gray Area:

Beginning this week, and continuing through the rest of the year, we will be constantly hearing about the Trump Tax Cuts of 2017, which are due to expire next year, December 31, 2025. Congress is taking up whether to let them expire, modify them and let certain parts continue, or let the whole thing continue.

When these cuts were initiated in December 2017, Trump and the Republican Congress had anticipated that future Congress’ would let the tax cuts continue because of their positive impact. As we listen to the debate the rest of this year, we will see the usual left and right opinions on whether those tax cuts were beneficial or not.

On the left, you see American Progress, is giving a very detailed and academic definition of the negative impacts of the tax cuts going forward.  Do you think this is to clarify the impact of the tax cuts for you, or to confuse you by illustrating how complicated the subject is, and, therefore, you need ‘experts’ to tell you what’s right and wrong.

On the right, you see an article from Fox News giving you the five benefits of the tax cuts. A straightforward or biased review? Here are their 5 points:

  1. The average family of four saves roughly $2,000 a year. This means, sorry, Joe, repealing the bill would raise taxes for most families making less than $400,000. The House Budget Committee has estimated that the typical family will pay $1,500 more taxes annually if Biden repeals the Trump tax cut.
  2. The Trump tax cuts vastly simplified the tax code for the majority of Americans. A major feature of the bill was to double the standard deduction from $12,500 to $25,000. As a result, prior to the Trump tax cuts, about one-third of tax filers had to itemize their deductions, now 90% take the standard deduction.
  3. The Trump tax bill forces millionaires and billionaires in blue states to pay their fair share of taxes. The left hates this aaspect of the tax law.
  4. The Trump tax cuts raised revenues. After four years an analysis found that the policy changes actually raised more revenue in its first four years than the Congressional Budget Office predicted without the tax cut.
  5. The rich paid more, not less taxes after the Trump tax cut. Biden says continually that the major reason the deficit has exploded is that Trump cut taxes on the rich. Wrong. Five years after the Trump tax cuts, the IRS’ own data show the top 1% of earners in America saw their percentage of total income taxes collected rise from 40% to 46% of the total in 2022. This was the largest share of taxes paid by the rich ever.

American Progress on the left makes a complicated attempt to blame deficits and debt on the 2017 tax cuts. Spending has created deficits and a near catastrophic level of debt for this country, not tax cuts. Every President has contributed to deficits and debt, particularly the last three. Obama’s spending & tax increases for Obamacare and supposedly for economic growth (which did not materialize) and to fight the great recession (which Bush had already done), created deficits and debt. Trump spending on foreign policy, the border and growth also had a negative impact on deficits and debt. But, according to the CBO, that spending attacked decreases and had a positive effect. The Biden administration’s, wild spending on Covid, the leftist agenda, climate change, supposedly on infrastructure, created inflation and exploded deficits and debt.

In all his campaign speeches, President Biden calls them ‘tax cuts for the rich’ and then says that billionaires pay only 8% tax rate.  That is false.  As is everything the left says about taxes.  Either they don’t understand taxes, or they do and are purposely deceptive.  I think the latter is true, simply because Democrats always want more money to spend.  This desire has no effect on whether we need to spend more money, only that they want more money to spend on pet projects and ideological agendas.  And, the best way to get that money is to target the rich. Progressives See Leverage to Target the Rich. Nobody cares if the rich pay more.  They have plenty of money. Elon Musk added context to this misleading narrative.

If you want to further see clearly into the tax plans of President Biden and the progressive left, here is a Washington Post article explaining from the left’s point of view what Biden is planning in 2025 to target the wealthy. According to The Daily Signal, explaining the right point of view, Biden plans a tax that will decimate your retirement savings. This type of taxation also signals the Marxist ideology of the progressive left he represents.

This effort on the left by American Progress will be continuing via the left media and Democrat politicians to create cover for Biden’s inflation by using such complicated explanations and falsehood concerning taxes.

According to Politico in Dec., 2021, U.S. sees biggest revenue surge in 44 years despite pandemic. The surge has gotten relatively little notice, obscured perhaps by the government’s towering budget deficits and congressional battles over taxes and spending.
It is highly unusual, though, for the government to see a big wave of revenue in the wake of an economic downturn.

The IRS also stated that the 2017 tax cut had a positive impact on the economy, the middle class, and every economic level within the economy. Let them continue to generate revenue for the government.  That revenue can help to pay down deficits.  Debt is another problem,  but that revenue will hep us not create as more debt as fast.

More From The Wall Street Journal (subscription required):

At End of Trump Tax Cuts, Progressives See Leverage to Target the Rich