Trump individual income tax cut: $89 a day for the 1 percent; 11 cents a day for the poor

Mark Gruenberg

Mark Gruenberg Editor, Press Associates Union News

What can you buy for 11 cents a day?

How about five packages of ear buds candy, with a penny left over? Or 11 little plastic glow-in-the dark wristbands?

Those are some of the items we found on e-bay that the poorest among us could buy with Donald Trump’s tax cut.

The non-partisan Tax Policy Center took apart the Trump-GOP Tax Cut and Jobs Act – the $1.5 trillion tax cut for the rich and business the GOP-run Congress rammed through last year.

Its scholars isolated the impact of the individual income tax cuts alone, and came up with an astonishing comparison: The bottom 20 percent of taxpayers will get an average tax cut next year of $40 when they file their tax returns next year, covering 2018. They’re the folks making $20,000 or less.

That works out to 10.9 cents a day.

And 27 percent of those poor taxpayers will actually see a tax hike when they send in their forms next April 15, the Tax Policy Center adds.

By contrast, the top 1 percent, who make $782,000 or more, will get a $32,650 tax cut. That’s $89.45 a day, 365 days a year, including Sundays and holidays.

So what can you buy for 11 cents a day? We went to e-bay to find out, by Googling that phrase.

Well, the glow bands, at a penny apiece, are one item. The ear buds candy at two cents a bag is another. So are some promotional mugs and imprinted drawstring bags, if you buy them in bulk, also each for two cents.

To give you an idea of how little the poor get from Trump’s tax cut, its daily payout isn’t enough for an electronic internet “He is risen” poster of Jesus Christ (20 cents). You’d need about two days of Trump’s tax cut for that.

But give a taxpayer $89.45 every day, and the story changes quite a lot:

There’s a “Pilot Namiki Custom Heritage Black Fountain Pen” for $89.38 at various pen stores. You get seven cents change, but that may not cover the sales tax. And two sets of four auto brake pads at $89.13 each. Now all you need is a car that needs new brakes every day.

There’s a 100 percent handmade Latex Rubber 1-Piece Gummi catsuit for $89.30. That’s something a 1 percenter could get his daughter. The women’s latex pants are the same price.

There’s a Shop-Vac Wet Dry canister vacuum cleaner for $89.27. It costs slightly less than the large canvas Tupac Shakur poster, the authorized Andy Warhol Marilyn Monroe print, or a big Pokemon game, at $89.99 each.

Whoops, that’s a little bit more than the GOP tax cut is giving the 1 percent every day. They’d actually have to dig into their own pockets for an extra 58 cents for each of those last three items.

All kidding aside, there are a few other key findings from the Tax Policy Center report. They include:

“In most states, the change in after-tax income” from the income tax cut alone “will be close to the national average of +1.8 percent” next year, the report says. “However, the tax cut will exceed 2.1 percent of income in seven states,” Alaska, Louisiana, both Dakotas Texas, Washington and Wyoming. Though the report didn’t say so, Trump carried all but Washington, most of them by huge margins.

And the impact of Trump’s income tax cut “will fall below +1.5 percent” of after-tax income in three states: California, New York and Oregon.

A higher share of taxpayers in five states and Washington, D.C., will actually see tax hikes, thanks to Trump and the GOP capping the combined deduction for state and local income and property taxes at $10,000.

The hikes in New Jersey, Maryland and D.C. will hit almost one of every ten taxpayers, and will hit one of every 12 in three more, California, Connecticut and New York. Everyone else in those states, as in others, will see no change or a cut. Not coincidentally, 2016 Democratic presidential nominee Hillary Clinton carried all six of these heavily blue states.

The right-wing American Legislative Exchange Council (ALEC), a secretive pro-corporate cabal of lobbyists, lawmakers and honchos, lauded Trump’s trashing of the state and local tax deduction, the report said. It claimed taxpayers in lower-income states subsidize those in high-income ones. Gov. Andrew Cuomo, D-N.Y., had a distinctly different view.

“Washington has launched an all-out direct attack on New York state’s economic future,” Cuomo said in his State of the State address. “It is crass. It is ugly. It is divisive. It is partisan legislating. It is an economic civil war. Make no mistake: They are aiming to hurt us.”

The entire report is available on the Tax Policy Center website.


Reposted from People's World


Posted In: Allied Approaches

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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