to wonder why people think Trump's tax changes are bad?

[thedevilsmarshmallow]

Looks like most people will get a tax cut. Why are so many people saying Trump's tax changes are awful? I am not an expert so don't understand the complexities of these changes so regardless of whether you think Trump is the devil incarnate for other reasons, can anyone explain in non-emotive terms why the tax changes are bad and if they are bad, who they are bad for? This is a genuine question as on the surface they look like generous tax cuts for most people.

Because the lowest paid benefit very little and the richest will gain the most.

www.motherjones.com/politics/2017/12/a-new-report-shows-just-how-much-the-republican-tax-plan-benefits-the-richest-americans/

And don’t forget that real estate investors will get a new 20% tax rate - guess who that will benefit?

The bill is good for the rich. And for big corporations (so their shareholders, again rich, will benefit too). Fine.

Because the rich and big corporations will be paying less tax, the government will have less money to spend on health, education, the environment, welfare, infrastructure etc etc that would benefit most of the population, including those most in need. Not fine.

And don’t forget that tax breaks for lower and middle paid families are temporary - after 2017 they end up paying more.

And all on top of losing Obamacare.

Why are people so interested in US tax affairs? That is a genuine question.

When the Economist describes them as regressive and ill thought out ......

Why are people so interested in US tax affairs? That is a genuine question.
Because the World's largest businesses are American and the US Tax rate impacts on their behaviour
also American investment in the rest of the world impacts on all of us

The guardian published an article on poverty in the US. The homeless in it received nothing. They lived in horrific conditions. From my understanding the welfare state in the states is tiny to non-existent. It will be reduced further after these tax cuts.

That's interesting TalkinPeace. We never used to be so interested in US fiscal matters until the collapse of the subprime mortgage market occured and subsequently Trump's rise.

numbereighty
The world's financial markets are deeply incestuously tangled.

Blackrock has shares in every listed company in the developed world.
Almost every personal and company pension has shares in Blackrock.

It used to be said that when America sneezed, the world caught a cold.
Now its if they reach for the kleenex, everybody else holds their breath.

Offshore financing is a scourge on the world's economy.
The two greatest purveyors of "Offshore" and money laundering are the UK and the USA.
London is the money laundering capital of the world.
The Gordian knot needs to be cut at some stage.
Neither May or Trump are heading in the right direction.
and leaving the EU will make it worse not better

Because he should be taxing the rich and those horrible greedy corporations who provide employment and many rely on for pesnsions investment into the ground! How dare they work hard (doesn't even count as hard if it's not manual labour does it-who cares if they spent years studying medicine?) and earn money!

Such a wealth of knowledge Talkin

That is fascinating. Economics are a big whole in my knowledge. I appreciate that there will be significant ramifications for the rest of the world whatever the US and it's markets do, because of globalisation, but I wondered to what extent it really does matter to us? The only economist I have ever really hear of is Schumacher, and I kind of like his idea of 'small is beautiful.' I really should read up on this more!

A big hole, not a big whole!!!!

And heard, not hear!

I subscribe to the Economist (and Private Eye for balance)
I absolutely love it.
Each copy takes me around 15 hours to read
and they are so unbelieevably rude about some politicians its great fun.
Do not be put off by the dense text. The articles are often very pithy.
Buy the bumper Christmas edition and enjoy.

I read Private Eye from time to time but haven't read The Economist. I will have a look at it.

numbereightyone your local library may offer online access to it - mine offers online access to that as well as National Georgraphic and new scientist and loads of others, all free of charge! I have the app on my phone and my tablet :) I search library e magazines

I will have a look Etymology. I am regular library user so I should be able to access that quite easily.

Excellent! (That suggestion was the web search but obvs if you’re a regular use you’ll probably navigate their website much easier!) I keep trying to spread the news as the more people who use libraries the harder it is to keep cutting their funding!

We are lucky to have access to a wonderful library. I have been an avid library user all my life and I despair at their demise.

They are giving a huge permanent tax break to the rich and to corporations, while giving only a small temporary tax break to the less rich.

They are taking away the health insurance mandate which is one of the things that enables the government to subsidise people on low incomes who need help with their health insurance.

The change to property tax and state tax deductions will ensure that people in states that tend to vote Democrat will typically be taxed more.

The overall effect is to decrease government income and increase the country's debt.

Because the government will then have less income they'll use that as an excuse to cut 'entitlements' like healthcare for poor children.

The government claims that cutting taxes on corporations will boost the economy so that everyone makes more money and it trickles down.

Think that's likely? No, me neither.

Thanks for the replies, very interesting.

An American friend of mine who is a teacher will be $10000 pa worse off. Also private school fees are going to be tax deductible and because of how that works re school funding, there will be less cash for their public(state) schools.

An American friend of mine who is a teacher will be $10000 pa worse off.

How did your friend already calculate his/her new salary? Is there a calculator somewhere? I've struggled to find one that takes into account all the different changes eg I can see how our basic tax rate will change but not how things like changes in standard deductions or no longer being able to deduct property tax will affect our income.

The main hit depends on the state because State taxes are no longer federally deductible