How Tax Cuts Can Rip You Off
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We think tax cut, and we think more money for us, less for the government.
Well, not so fast.
Here’s an example of how a tax cut actually ripped off the majority of Americans.
The Tax Cuts and Jobs Act passed early in the Trump administration was actually for the benefit of businesses and high-income families, who gained significantly. The richest 1% of Americans received an average tax cut of $50,000 for 2020. However, the reduction for the bottom 80% averaged only $645.
By reducing corporate tax rates and lowering rates on higher tax brackets, wealthy families who tend to own more stock and have higher levels of income saw a significant windfall. Not so for the rest of us.
This tax cut is an example of Republican policy of shifting the tax burden from the wealthy and corporate businesses to the average American. It’s been going on for decades.
Meanwhile, how is government funded? It’s either by getting more taxes from everyone else OR going into debt. And ultimately we – and generations to come – are all responsible for this burgeoning national debt.
What Really Works
What works more effectively – and more equitably – is promoting economic growth in the middle- and lower-income classes. Income inequality is more than just an imbalance—it’s harmful to our overall economy and prosperity.
Tax cuts for the wealthy fail to stimulate the economy because wealthier people are more likely to save income they gain, as opposed to those with less income who are more likely to spend it. By giving more wealth to those at the top, we ultimately restrict how much money is put back into the economy to drive growth and prosperity.
To make a long story short, the rich are getting richer, while the middle-class and lower-income households are getting poorer, and in the big picture we’re all worse off for it.
Fortunately, today’s leaders and administration are well aware of the problem. The recent Inflation Reduction Act includes, finally, tax hikes on the wealthy as a way to fund programs that increase the well-being for all of us. And the current administration has promised not to raise taxes on households with income less than $400,000.
Today, what’s fair is that the wealthy and corporations start to pay their fair share of supporting this country and stop shifting the burden to working and middle-class Americans. We are on our way.
Suggested Twitter post: How #tax cuts can rip you off – find out the truth, and what approach to #taxes works to be fair and to promote the #economy. https://bit.ly/3AdAlwc
Another Twitter post: Why #Republican #tax cuts cheat the average American, and how we’re finally #taxing the wealthy to be fair and to promote a healthy# economy. https://bit.ly/3AdAlwc
Facebook post: You may think tax cuts are a good thing – but here’s some surprising information on how tax cuts can actually make you worse off. Trump’s tax cuts are a great example. Find out the truth and what approach to taxes will be both fair and promote a healthy economy. #taxcuts, #Trump’s taxes, #fairtaxes https://bit.ly/3AdAlwc