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No, they lowered corporate taxes. They raised taxes for the majority (but not all) of the high income workers by reducing the deduction for state and local taxe
by rsj_hn 4y ago
No, they lowered corporate taxes. They raised taxes for the majority (but not all) of the high income workers by reducing the deduction for state and local taxes (which, along with the mortgage interest deduction, should never exist) something the Democrats, who are trying to lower taxes for the rich, want to roll back. If you are a tech worker living in California, it's almost certainly the case that your taxes went up, often by quite a bit.
In terms of the very rich - those who live off of capital income rather than wage income -- taxes were unchanged and remain at the long term capital gains rate of 20%. The long term capital gains rate is perhaps the biggest loophole for the wealthy, and neither party will touch it. Thank Bill Clinton -- another Democrat -- for signing the "Taxpayer relief act" that lowered the top rate to 20%, which is where it sits today.
The GOP tax plan was a corporate tax cut (politically justified by the myth that there is "money sitting outside the US that corporations will repatriate to our shores and invest in America") -- combined with a partially offsetting hike on high earners by attempting to close some loopholes that were carved out for the wealthy, such as the deduction for state and local income taxes paid.
I opposed that tax plan and was disgusted by it, especially exploiting the economic illiteracy of the public with the canard about money being brought back to our shores -- the money was always in our shores, it was just the name of the holding company that was the owner of record that changed, but the nationality of the owner of a share of stock or bond has no bearing on where the funds are invested. It is the business for which the bond, deposit, or stock is a liability that determines where money is invested, not the business which holds it as an asset. However almost as deceptive as the GOP narrative to "bring overseas money back to the U.S." was the Democrat narrative that this was a "tax cut for the rich". It was a tax hike on high earners but overall ambiguous on "the rich" as the closing of the loopholes was partly (but not fully) offset by the changes in brackets. My total tax liability went up by about 15K as a result of that deal, and I wouldn't mind that if it wasn't used to fund corporate tax breaks, which again end up being tax breaks for long term capital gain holders and those with tax advantaged investment accounts. There was a lot of deception surrounding that tax deal.