The tax plan winding through Congress is becoming nothing the American middle class will appreciate.
The class warfare being put in the bill when all is said and done — perhaps before the end of the year — will not be recognized as beneficial to the dwindling ranks of middle class.
The fact that the corporate tax rate moving down to 20% is not negotiable is just wrong on so many levels.
Corporate balance sheets are in the best shape in years. US firms could thrive in a 23% rate environment just as well, given that they are looking at a 35% rate now. Of course many are not paying anything near that rate.
If you make it 23%, most corporations will be paying a high teens rate by year one, as they find where the loopholes are.
Holding on to the 20% rate for companies means middle class effective rate will be little changed from the current tax rate. Put on top of that the loss or cutting of some standard deductions and the middle class will be paying plenty more for companies to fund stock buybacks and dividends with very little wage growth.
Forget all about the tax return on the back of a post card, because much of the middle class will not be able to afford the stamp for it after this bill comes out of Congress