Recently a reader wrote to the Arizona Daily Star spewing bogus claims about what would happen if Biden were elected. She claimed all manner of bad things would happen financially if he were to be elected. For instance (without supplying any facts) she claimed that he would:
- Raise taxes by $3.4 trillion.
- Raise spending by 5.4 trillion.
- Raise corporate taxes from 21% to 28%.
- Spending proposals would cause the biggest Federal budget increase in half a century.
- Raising corporate taxes would send American jobs overseas.
Let’s look at each point and decide for ourselves.
The Trump administration has spent $3 trillion and counting for coronavirus relief in four separate measures over the last two months.
- For the year 2018, Trump had a budget deficit of $779 Billion
- For 2019 a budget deficit of $984 Billion (Washington Post & The Bipartisan Policy Center)
- The Congressional Budget Office projects a 2020 total deficit as $2.8 Trillion and counting while promising “to eliminate the federal debt within eight years.”
The Republicans’ mantra that corporate tax cuts would increase income tax receipts and pay for themselves doesn’t seem to be working. Even with Trump cutting corporate rates from 35% to 21%. And Biden’s purportedly raising corporate taxes back to 28% still lower than 35%, how will this cause more harm than Trump’s tax cuts?
How have Trump’s tax cuts been working? For corporations, just fine, thank you. In the 1950s, corporate taxes as a share of America’s economy were at 7% with a booming economy. Today corporate tax rates are 0.77%. It’s not surprising that the economy is tanking (and not just because of the virus) instead of corporations investing in new machinery, expanding their businesses, hiring new workers, they have made stock buybacks. Goldman Sachs estimates corporations spent a record of $770 billion in 2018 to repurchase their own stock with their increasing piles of after-tax profits and that will increase that to $940 billion this year. Other chunks of the cuts went to paying dividends and reducing company debt.
And from Sec. of Treasury Steve Mnuchin “these tax cuts will pay for themselves with growth.” (Washington Post from April 2017) Then all Americans should have benefited financially from these tax cuts, not just corporations. All Americans would not fear losing their health insurance through the Affordable Care Act and Social Security will run out of money in a few years.
A Tax Cheat
The recent New York Times article reported that tax records show Trump’s chronic losses and years of tax avoidance. According to the article, Trump paid a mere $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid only $750. He paid no income taxes at all in 10 of the previous 15 years primarily because he reported losing much more money than he made.
“The Apprentice,” along with the licensing and endorsement deals that flowed from his self-aggrandizement, brought Trump a total of $427.4 million. And he has previously bragged that his ability to get by without paying taxes “makes me smart,” as he said in 2016.
I guess that once again, he proved that U.S. taxpayers are just another bunch of “losers and suckers.” I guess because he has avoided not only the draft or prison time (Sen. McCain) “I like people who weren’t captured.”
The records that The Times reviewed square with the way Trump has repeatedly cited, without explanation, an ongoing audit as grounds for refusing to release his tax returns. He alluded to it as recently as July on Fox News, when he told Sean Hannity, “The I.R.S. treated me horribly.”
Testifying before Congress in February 2019, the president’s estranged personal lawyer, Cohen, in his book (DISLOYAL) recalled Trump showing him a huge check from the U.S. Treasury some years earlier and musing “that he could not believe how stupid the government was for giving someone like him that much money back.”
On Fox & Friends in 2012, host Steve Doocy pointed out that half of the country doesn’t pay federal income tax and asked Trump: “Is that fair? No, it’s not,” Trump responded. “It’s even more than that, as I understand it, and it’s not fair,” he said.
It sure would be nice if Trump would pay his fair share of taxes, so that Biden wouldn’t have to raise ours.