Republicans in the Senate and the House have reached a compromise on their tax overhaul, one that’s almost certain to be supported by 9th District Congressman, Morgan Griffith. There’s a lot to it, but for most working and middle-class folks in our region, the most important takeaway is probably this:
A school teacher, at best, might see an increase in her income (after taxes) of about $350 per year. For a worker at the Volvo plant in Dublin, about $300. A sheriff’s deputy, less than $250.
The tax cut for Anthem Blue Cross Blue Shield CEO, Joseph Swedish? About $429,000 per year.
Let that sink in: A deputy, a factory worker or a school teacher might see a bump in their annual wages equivalent to one car payment. The increase going to the top dog at Anthem, on the other hand, will be more than most of us earn in a decade.
That gain for the very wealthy comes solely from the drop in the top marginal income tax rate from 39.6% to 37%. It doesn’t include many other giveaways to the rich, including the ability to hide some income through ‘pass through’ businesses, or the huge drop in corporate tax rates that will dramatically increase before-tax income for many of the same people.
The GOP argues, of course, that corporate tax cuts will give workers a huge pay raise. But as we show in our video, forty years of real world experience totally disproves this trickle down fantasy. Besides, the actual tax rate that big companies pay has averaged less than 20% since 2000, enabling them to amass two trillion dollars in cash already. But instead of investing that or passing along some of the profits to their workers, they’ve kept more and more of their profits to themselves, and wages for most of us have been stuck in the toilet.
President Trump promised a “giant tax cut for Christmas” for middle income people. Instead, the very rich, like the CEO of Anthem--the guy who’s hiking our insurance premiums--are the only ones who’ll be getting that big Christmas gift.