“But here’s the thing: For the heart of the middle class as a whole—-30 million filers in the aforementioned income brackets—the statistical average tax cut would amount to $6.15 per week.
That’s right. Two Starbucks cappuccinos and a banana!”*
Hey…Cut spending. What a concept. Seriously Republicans you should really consider it. What a novel idea. Of course that means being adult about spending and that is just so lame. Some people might get angry.
Washington, DC is currently in the middle of a the “tax reform” process, which as Jeff Deist, points out, is ” a con, and a shell game.” Tax reform proposals, Deist continues “always evade and obscure the real issue, which is the total cost — financial, compliance, and human — taxes impose on society.”
Tax reform is really about which interest groups can modify the current tax code to better suit their own parochial interests. The end result is not a lessened tax burden overall, and thus does nothing to boost real savings, real wealth creation, or real economic growth. It’s just yet another government method of rewarding powerful groups while punishing the less powerful ones.
Not surprisingly then, the news that’s coming out of Washington about tax reform demonstrates that the reforms we’re seeing are only shifting around the tax burden without actually lessening it. The central scam at the heart of the matter is that DC politicians are more or less devoted to “revenue neutral” tax reforms. That means if one group sees a tax cut, then another group will lose a deduction, or even see an actual increase in tax rates.
This is why many middle class families may be looking at a higher tax bill. David Stockman explains:
*Mr. Stockman is incorrect. It would amount to 1 cappuccino and a banana.