Trump Cuts Taxes To Make Rich Richer
Billionaire Warren Buffett strongly opposed President Elect Donald Trump during the recent Presidential campaign. Buffett was an outspoken supporter of Democrat Hillary Clinton. Despite the fact that his presidential candidate lost the election, Buffett and his company still won.
Buffet’s Berkshire Hathaway Inc., instantly became richer by default. Under Trump’s Republican administration, the bottom line of the rich will be greatly improved. To wit, Berkshire, a conglomerate with a current book value of more than $270 billion dollars, will now pay much less in taxes.
Trump campaigned on the promise that he would streamline individual tax rates into three brackets. He also pledged to reduce the tax rate paid by major U.S. Corporations. These elite businesses are currently taxed at the rate of 35 percent. Under a Trump administration, their tax rate will be reduced to 15 percent.
Because of Trump’s tax policy, Berkshire will pay 20 percent less. According to Barclays Plc, this huge reduction in tax obligation will increase Berkshire’s book value by $29 billion dollars.
Berkshire is not alone. The drastic Trump tax cuts will enable the top 1 percent of earners to retain 5.1 percent more income. Conversely, on average, earners within the bottom 20 percent will only recover 1.3 percent of the taxes withheld by the government.
Less Tax Revenue Means Fewer Resources
Over the next 10 years, Trump’s tax breaks for the rich will decrease Federal revenue by $6 trillion dollars. That revenue reduction will impair the government’s ability to fund primary entitlements. Many poor and average Americans rely upon Social Security, Medicare, Education and Public Assistance and other government resources. Reduced monthly income would leave many Americans with less money to spend. A significant cutback in spending would cripple our economy.
Historically, Democrat led administrations have had greater success in terms of annual gross domestic product growth. The U.S. economy under President Obama has grown approximately 2 percent a year. President Elect Trump has projected his overall fiscal policies will yield 4 percent yearly.
Most economists insist Trump’s economic projections are unfounded and highly inflated. Other Experts warn Trump’s tax cuts will increase the national debt by Trillions of dollars.