A big part of President Trump’s appeal when he ran for election was his promise to cut taxes and let ordinary Americans keep more of their own money. Since taking office, he’s followed through with a program of tax cuts – but he’s been accused of favoring the rich, rather than the American workers he’d pledged to help.
The main voice beside these accusations is perennial socialist pest Bernie Sanders. Should Trump be feeling the bern on this one, or is it all smoke without fire?
- Appearing at a CNN Presidential town hall Monday night, Vermont socialist senator, Bernie Sanders, slammed President Trump’s tax plans as unfair, telling the audience the lion’s share of the benefits would go to the richest people in America.
- According to Sanders, the highest earners – the “one percent” who’ve become the latest demons in the leftist pantheon – will receive 83% of the benefits of the coming tax cuts.
- This is a common theme for Leftists – that tax cuts benefit the rich, who should be paying more instead of less. They usually extend this to an argument against cutting taxes at all, saying the government should spend – or “redistribute” – the money instead.
- In fact, Sanders has his figures completely wrong. The reality is that, for the 2018 tax year, the top 1% of earners will receive 20.5% of the benefits of the tax cuts – and they pay a lot more than 20.5% of the nation’s taxes.
- Sanders was either confused by, or misrepresenting, a report that says the top 1% will get 83% of the benefits in 2027 if some of the cuts are allowed to expire.
- Trump’s tax cuts include reductions in both personal income taxes and corporate taxes. The corporate tax cuts are very necessary – right now we have some of the western world’s highest taxes on business – and the reductions being made there are permanent.
- However, to comply with federal laws about not increasing the deficit, the personal tax cuts will expire in 2027 unless they’re extended. If they expire, the richest Americans – who own the largest businesses – will start to benefit disproportionately.
The thing is, this will only happen if Congress refuses to extend the personal tax cuts in 2027. Trump won’t be president in 2027, and he’s done everything he can to cut taxes for US workers while he is president. Sanders says otherwise – but he’s not telling the truth.