Trump Team Targets 401(k) Savings Accounts In New Tax Plan

There’s a new gang in Washington calling themselves the ‘Big 6.’ Like much of the Trump administration’s anti-working class agenda, they’re working behind closed doors to craft a plan a tax plan that’s the equivalent of pouring gasoline on the income inequality fire.

Make no mistake, the primary purpose of the Republican tax plan is corporate welfare on steroids. The tricky part is getting working-class and impoverished Americans to pay for it without them understanding just how badly they’re being screwed. And when you consider the cast of characters in the ‘Big 6’ this should come as no surprise. They are; Former Goldman Sachs guru and current Treasury Secretary Steve Mnuchin; Senate majority leader Mitch McConnell (R-Ky), House Speaker Paul Ryan (R-Wis.), Senate Finance Chair Orrin Hatch (R-Ore.), and Ways & Means Committee Chair Kevin Brady (R-Tx.), and another former Goldman Sachs alumni, Gary Cohn, who is currently serving as Trump’s Economic director.

One emerging detail includes an upfront tax on workers’ 401(k) savings plans. It’s hard to see how shrinking paychecks with this scheme will stimulate economic growth. But it is yet another step toward redistributing more money to corporations.

Another idea being floated is eliminating federal deductions for state and local taxes. This won’t do much to help working-class people, especially in solid blue states like New York and California. However, it does fit with the goal of making income inequality much worse.

Perhaps the biggest moral and ethical failure of so-called conservative values is that none of the tax cuts are destined for deficit reduction. You know, the thing Republicans have been whining about since G.W. Bush used America’s credit card to pay for 3 wars and more tax cuts for rich people.

According to Politico,

Top White House officials are less concerned about adding to the deficit because many believe that the economic growth stemming from lower tax rates will make up any budget shortfalls.

Translation: Republicans are perfectly happy to borrow money to finance corporate tax cuts that they know are unlikely to generate enough revenue. (See last Republican administration for details).

As NJ.com points out, Republicans use the term ‘revenue-neutral’ to justify an income redistribution plan that is not intended to reduce the deficit. Claiming to want to reduce the deficit without doing anything to reduce it is a contradiction in terms few outside the GOP base can swallow.

Anyone who has ever balanced a checking account or lived on a household budget knows that the answer to solving debt problems is not robbing Peter to pay Paul. On some level, Republicans must know this, too. But it’s much too hard for them to admit that America’s deficit problems could easily be solved by revenue-positive tax reform that includes raising taxes on Americans that have so much money, going to work is more of a hobby than a necessity.


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About Tobin 242 Articles

Tobin is a political junkie and animal rights advocate who believes that if people can stand on line to buy junk food, they should also be able to stand on line to vote. Tobin is the author of “Afterlife: The Journey of a Dog’s Spirit” now available on Amazon.com http://www.amazon.com/dp/B0150RP9DA

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