On Wednesday, Treasury Secretary Steven Mnuchin presented the Trump administration’s “tax reform” plan, even though there’s no reform, only more trickle down voodoo economics calling for massive tax cuts for business and the rich. Yeah, because that worked so well in the past.
The Trump tax plan (a one-page bullet-point sheet) was the subject of the debate on CNN, with Trump economic adviser Stephen Moore arguing that the reduction in the business tax rate from 35 to 15 percent was some kind of magical panacea that will jump-start the American economy:
“The 15 percent business tax cut is really the heart and soul of this plan. We can’t go forward in the world with the highest tax rate in the world. It’s just a simple truism.”
Former Wall Street exec Alexis Goldstein quickly shot down Moore’s assertion:
“It’s not accurate to say the United States has the highest tax rates in the world. Americans for Tax Fairness pointed out that only one dollar for every nine dollars in tax revenue is currently coming from corporations because they have so many methods of dodging taxes, shifting them overseas.
“In addition to not having very many details, in addition to not having Donald Trump’s tax returns, we have two former bankers from Goldman Sachs announcing a plan that from the details that we do know will dramatically cut taxes for big banks like Goldman Sachs.”
But Goldstein was far from finished taking the air out of Moore’s balloon, adding:
“I think this tax plan is a huge giveaway to corporate America. It’s not going to put more money in the pockets of American workers. What it’s going to do is it’s going to enable giant corporations to do more mergers, to get even bigger, to extend their concentration of power, and it’s going to enable them to pour more money back into their already-wealthy shareholders pockets.”
Moore attempted to regain the momentum, claiming that “70 percent of the benefit from a business tax cut go to worker, not the owners of the business.”
Again, Goldstein shut him down with facts:
“Small businesses are already able to take advantage of lower tax rates. This is a plan that’s going to help large corporations. This betrays the campaign promise, this betrays the promise that Steven Mnuchin made that there would be no absolute tax break for the wealthy.
“This is a tax break for the wealthy, this is a tax break for large corporations, this is a tax break for real estate developers like Donald Trump. It’s a tax break for hedge fund managers.”
If the Trump administration wants to deny the truth of what Goldstein said, they can start by releasing the so-called president’s 2016 tax return.
This article was originally published by the same author at LiberalAmerica.org