In what could amount to the greatest tax overhaul of this era, President Donald Trump may have just dealt congressional Democrats their final death blow.
Dubbed as the nation’s Christmas gift from Washington, DC, and the White House, the billionaire businessman and former TV reality star will have accomplished what no other president could in decades — put real money into everyday American pockets and grow the economy.
Dubbed the Tax Cut and Jobs Act, the sweeping legislation wipes out the Obama-era health insurance mandate (tax), lowers corporate business tax rates to an internationally competitive level, reduces American federal tax liability percentages and increases the Child Tax Credit.
The legislation stream rolled Democrats in the U.S. House of Representatives 227-203, and left-leaning Senators 51-48. Pres. Trump plans on making this America’s all-time middle-class and business Christmas present.
These are some of the important tax cut details:
- Corporate Taxes drop from 35 to 21 percent
- New personal and joint tax rates run 10 percent to 37 percent with 5 of 7 brackets seeing a reduction
- Wealthy Americans ($500,000 individual or $600,000 joint filers) enjoy only a 2.6 reduction
- No ObamaCare mandate tax
- Child Tax Credit increases to $2,000
- Families can deduct up to $10,000 in local property taxes
Both proponents and critics of the legislation appear to be drawing similar conclusions about its direct impact on the Democratic party.
Why The Dems Are Doomed
Democrat minority leaders Chuck Schumer and Nancy Pelosi pulled out all the stops to decry the Trump-led tax cut initiative. It has been called a tax cut for the wealthiest Americans at the expense of the poor and middle class repeatedly. Those go-to political rants have been worn so thin that even the mainstream media has been unable to sell click-bait with them. But, Schumer and Pelosi are correct. This is the end of the world — for Democrats.
“I listen to Chuck Schumer, and the end of the world is coming with this tax bill,” billionaire GOP businessman and Home Depot co-founder Ken Langone reportedly said. “My guess is (it’s) the end of the world for the Democratic Party because if this tax bill, in my opinion, passes it’s going to unleash economic forces all to the good for a lot of people.”
The home materials and tools mogul went on to explain that he fully he expects his personal taxes to increase. Obviously, he pays the top tier bracket that was only reduced by 2.6 percent.
“Nothing is going to change in my life if I pay more taxes,” he reportedly said.
But the real rub is the way the tax cuts are structured to help national middle-class and poor citizens. Items such as limits on property tax deductions are likely to negatively impact high-priced home areas. Considering that these top-tier property value states include New York, California, Connecticut and others that went Hillary in the last election, Democrats will see their constituents possibly doling out a tad more.
By contrast, states that fall more into the national average for middle-class and lower-class incomes traditionally vote Republican. Residents in states such as Texas, Wyoming, Arkansas, Montana and others are likely to see more money in their paycheck and high tax refunds in April 2019. In other words, Pres. Trump and the GOP have delivered real dollars to their voting base.
That economic dividing line would not appear to cause any real voting shift. However, swing states voters are also likely to reap the direct benefits of the tax breaks.
Swing states such as Florida, Iowa, Michigan, Minnesota, Ohio, Nevada, New Hampshire, North Carolina, Pennsylvania, Virginia, and Wisconsin are unlikely to see a negative result from the GOP tax overhaul. In fact, middle class families will overwhelmingly benefit from lower tax percentages and double down with the increased Child Tax Credit. Talk about a win-win for middle-income families. Most would also see no change to deducting property taxes and these are the folks that will see upwards of $2,000 or more per year. In practical terms, that can be more than a full month of bills.
Losing Identity Politics
Minority voters have begun to hear the call from Pres. Trump, “what have you got to lose.” Inner-city African-Americans have suffered high unemployment, bad schools and excessive crime. Aside getting more dollars in their pockets, the slash in the corporate tax rate is expected to stimulate economic growth. Simply put, Jobs!
With unemployment spiraling down, an economic jumpstart will cause pay rates to increase. They’re already climbing slightly. That means improved economic conditions for the working African-Americans that were left behind by Democrats. Defining voters by race isn’t likely to be a viable platform once the GOP delivers prosperity. The only color future voters may see is green.
This Christmas, Santa Trump plans to deliver cold, hard cash to Conservative and swing states. Liberals, well, the war on coal is over and they can expect a lump in their stocking.
~ Conservative Zone