Drudge Retort: The Other Side of the News
Friday, December 15, 2017

Thursday, a group of leading inequality researchers, including Thomas Piketty and Emmanuel Saez, published the World Inequality Report, a panoramic study showing how, over the past thirty-seven years, the richest households in many countries have grabbed more and more of the economic pie.

In a sad coincidence, the report came out on the same day that more details emerged about the final version of the G.O.P. tax bill, which Republican leaders are hoping to push through the House and the Senate next week.

Although the bill is officially called the Tax Cuts and Jobs Act of 2017, it could more accurately be labelled the Augmenting-Inequality Act of 2017.

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Taken as a whole, the U.S. tax system is still progressive, but not as progressive as it was forty years ago.

The new report says that the surge in inequality, which has seen the share of over-all income and wealth of the country's top one per cent virtually double, is "largely due to massive educational inequalities, combined with a tax system that grew less progressive despite a surge in top labor compensation since the 1980s, and in top capital incomes in the 2000s."

To help offset rising inequality, one obvious option would be to make the tax system more progressive. But the Republican tax bill goes in the opposite direction.

But the final bill, which Republican leaders are scheduled to release in full on Friday, is now expected to be even more of a sop to Donald Trump and his fellow-plutocrats.

It would reduce the top rate of income tax, which is now about 40.8 per cent when you take into account a 2012 law that limited deductions for high earners, to thirty-seven per cent.

That's lower than the top rates that were proposed in the original bills passed in the Senate and the House.

According to the Wall Street Journal, the Republicans cut the top rate further after receiving complaints from high earners in places like California and New York that the original bills weren't generous enough to them.

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Of course. That is how it was planned.

#1 | Posted by 726 at 2017-12-15 07:14 AM | Reply

This tax bill is an answer to changing demographics which will prevent Republican majorities in the future. The plan is to steal as much as they can while they can and to make changes to our laws to make it as difficult as possible to put things right when Democrats regain control, which we will do. The demographics are totally awful for Republicans in the future, thank God!

#2 | Posted by danni at 2017-12-15 09:47 AM | Reply | Funny: 1 | Newsworthy 1

Pish-posh

this is just like buying a fastpass at Disney world

except its really nothing like that

sincerely

ebersmarm

#3 | Posted by ChiefTutMoses at 2017-12-15 01:00 PM | Reply

"The plan is to steal as much as they can while they can"

We have a winner.

#4 | Posted by Danforth at 2017-12-15 01:03 PM | Reply

"The plan is to steal as much as they can while they can"

And then blame the slow recovery on Dems who have to clean up after them. All still part of the original Reagan Era Starve the Beast strategery.

#5 | Posted by Corky at 2017-12-15 01:09 PM | Reply

There are tax cuts for each tax bracket along with higher deductions for children. WAWAWA

#6 | Posted by Sniper at 2017-12-15 06:22 PM | Reply

For individuals (corky and danni)who have proven they no nothing whatsoever about economics, your comments are priceless!!!

Why don't you tell us danni your thought process on
1 How higher taxes spur investments
2 How trump was going to tank the markets (you both said so scores of times!!)

Here's Jane Yellen's take!
My colleagues and I are in line with the general expectation among most economists that the type of tax changes that are likely to be enacted would tend to provide some modest lift to GDP growth in the coming years," Yellen said at her final news conference as the Fed's leader.

#7 | Posted by DavetheWave at 2017-12-15 07:08 PM | Reply

"For individuals (corky and danni)"

You can use Dorky for short...

#8 | Posted by madbomber at 2017-12-16 09:57 AM | Reply

"Why don't you tell us...your thought process on
1 How higher taxes spur investments
2 How trump was going to tank the markets"

1. Today, reinvesting $1000 in equipment, expansion, or wages comes along with a $350 tax incentive. Tomorrow, that tax incentive drops to $210. I'd suggest the owners will be less incentivized than they currently are to expand, raise wages, or buy equipment...but that's just me and math.

2. The markets have gone up $6 Trillion, over...what? A 10-yr, $2 Trillion cut? What do you expect will happen once the sugar high wears off?

"My colleagues and I are in line with the general expectation among most economists that the type of tax changes that are likely to be enacted would tend to provide some modest lift to GDP growth in the coming years"

The key word being "modest". IOW, the tax cuts won't pay for themselves. The "average" family is getting $23 a week, and taking on an additional $20,000.00 in national debt. All on additional borrowed money, authored by folks who know it's a massive giveaway to the wealthiest, while calling it a "middle-class tax cut".

#9 | Posted by Danforth at 2017-12-16 10:21 AM | Reply | Newsworthy 1

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