After passing a deeply unpopular $1.5 trillion tax-cut that overwhelmingly favored the ultra rich last year, The Trump administration is currently figuring out how to pass a new, $100 billion tax cut to the richest Americans. Reported the The New York Times:
Mr. Mnuchin has directed his department to explore allowing investors to take inflation into account when calculating their capital gains tax bill. (Instead of determining how much value a stock had gained by subtracting its original purchase price from its selling price, investors would first adjust the purchase price to reflect what it would be in inflation-adjusted dollars.) Fans of the move argue that it would benefit the wide swath of middle-class Americans who own stocks, along with all those older Americans whose homes have appreciated in value over the decades. And, indeed, many middle-class Americans could wind up with a sliver of savings. But not all investors are equal. Independent analyses say that a whopping 97 percent of the savings from Mr. Mnuchin’s plan would go to the highest 10 percent of income earners. (For the severely math challenged, that would leave a paltry 3 percent to be divvied up by the remaining 90 percent of the country.) Two-thirds of all savings would go to the top 0.1 percent of income earners.
So in rough dollar terms, the administration is looking to hand $66 billion-plus to the ultrarich like — just to name a few — Mr. Mnuchin.
This latest wheeze to line their own pockets lays bare the administration's true motivations. It was never really about 'Making America Great Again,' or keeping out the immigrants, or repealing Obamacare, or 'Draining The Swamp' -- it was about this: passing enormous tax cuts for the ultra wealthy and dismantling the federal government to make the lives of the poor and middle classes intolerable.
By rigging the tax code to benefit the ultra wealthy, the Trump administration starves the federal government of money, giving them the justification to wipe out services for everyone else. They are attacking Obamacare, social security, medicare, medicaid and every other government spending program you can think of, wiping out over a trillion dollars in spending on vital programs for the vulnerable in order to pay for their tax cuts. As Alan Blinder, Princeton University professor and former Fed vice chair, told CNBC, the new proposal "opens the door to titanic abuse of tax shelters," making it easier than ever for the super rich to not pay their taxes.
Most gallingly, Mnuchin is mulling whether to circumvent Congress in order to pass this new round of unnecessary gifts to the super rich.
“At a time when the deficit is out of control, wages are flat, and the wealthiest are doing better than ever, to give the top one percent another advantage is an outrage and shows the Republicans’ true colors,” Senate Minority Leader Chuck Schumer said in response to the new proposal. “Furthermore, Mr. Mnuchin thinks he can do it on his own, but everyone knows this must be done by legislation. If this proposal were to be considered in the Congress, it would not pass.”
It should now be clear that the rest of the administration's disgusting policies serve mostly to distract the population from enacting this type of legislation. While the country is fighting over border walls and Trump's latest tweet, the administration is figuring out how to (potentially illegally) dump more money into the pockets of the super rich as quickly as possible. The administration knows the GOP is going to get hammered in November, so they are working with the party on a "smash and grab" strategy that enables them to take what they can for themselves and their donors and leave the mess for future administrations to contend with.
It is important to understand that the GOP and the Trump administration stand for nothing other than this. Politics to them is little more than a con game played for the sole purpose of enriching themselves. They have no solutions to the country's problems, no policies, no ideas, no commitment to helping their fellow Americans. They do not really believe tax cuts and deregulation solve everything, but they understand that it makes them richer. Therefore everything can be solved with tax cuts, and everything must be about ramming them through.
The Republican Party should no longer technically be regarded as a political party any more -- it is merely a vehicle through which the ultra rich get their policies approved. And if you needed proof of this, Mnuchin and his team of cronies are currently providing it.