Today “Citizens for Responsible Tax Reform,” an organization without any mention on the Internet, published a fake “attack”/support ad featuring Rep. Dave Brat, using his own talking points to challenge him to support “tax reform,” i.e., tax breaks. This “citizen” group alleges that these tax breaks are needed to prevent future debt. Yet, the these tax cuts are unfunded and largely benefit wealthy corporations and individuals in the form of a lower corporate tax rate and repeal of the estate tax based on estates valued at over $5.49 million for individual and $11 million for couples. Hardly a middle class tax break for farmers, per an earlier statement by Trump.
In fact, according to the New York Times (Oct. 13, 2017), Secretary of Treasury Steve Mnuchin even conceded that the proposed GOP tax plans benefit the wealthiest Americans. Further, these unfunded cuts increase the deficit not reduce it.
Estates are taxed at a rate of 40 percent, but the first $5.49 million of an inheritance is exempt from taxation. Couples can leave their heirs as much as $11 million, none of it taxed, meaning only a few thousand wealthy estates are subject to the tax a year.
Preliminary analyses of the tax framework produced by the “Big Six” Republican tax working group last month were faulted for overwhelmingly benefiting the rich while potentially increasing taxes on some upper-middle-class families. The overall cost of the plan is expected to add $1.5 trillion to the deficit and, according to the Tax Policy Center, repealing the estate tax would reduce federal revenues by $239 billion over a decade.
So, we’re not sure who the “Citizens for Responsible Tax Reform” are, but we are quite certain it is not a local organization with YOUR best interest at heart. Rather, they are peddling failed, magical “trickle down” economic theory in which tax cuts for corporations supposedly benefit workers. In reality, corporations are beholden to maximizing shareholder value–not their workers’ paychecks–so the people who stand to benefit from increased profits are stockholders, not the workers.