"These measures amount to a tax surcharge on workers, young people and the elderly to help pay for the tax boondoggle for the rich."
"The Democrats are putting on a show of opposition that is cynical to the core. They are denouncing the Republican bills for skewing the tax benefits to the wealthy, while fully supporting the centerpiece of the legislation, a huge tax cut for US corporations."
White House, congressional Republicans accelerate drive for corporate tax cut worth trillions
By Barry
Grey
11 November 2017
The push is accelerating for an overhaul of the US tax system that
will divert trillions of additional dollars to the corporate aristocracy, widen
the gap between the rich and the working class and set the stage for the
destruction of basic social programs.
On Thursday, the Republican-controlled House Ways and Means
Committee passed a White House-backed tax bill on a party-line vote, after
which House leaders said the measure would come to the House floor for a vote
next week. On the same day, the Republican-controlled Senate released its
version of the measure, with plans for a floor vote in the upper chamber before
the Thanksgiving holiday later this month.
If passed, the two versions will be reconciled and a final bill
will be moved through the two chambers and signed into law by President Trump.
The Trump administration and congressional Republicans are pushing
for passage of the handout to the richest 5 percent by Christmas. The Democrats
are putting on a show of opposition that is cynical to the core. They are
denouncing the Republican bills for skewing the tax benefits to the wealthy,
while fully supporting the centerpiece of the legislation, a huge tax cut for
US corporations.
While there are differences between the House and Senate bills,
both versions adhere to the same basic framework. The corporate tax rate is to
be permanently reduced from the current level of 35 percent to 20 percent,
saving US corporations $2 trillion in taxes and generating an additional $6.7
trillion in revenues over the next decade. The House bill enacts the corporate
tax cut in 2018, while the Senate bill, in order to reduce the projected
deficit from lost federal revenues, delays the corporate tax cut one year,
until 2019.
The House bill keeps the top federal tax bracket at 39.6 percent
(down from 70 percent in 1980), but applies it to households making more than
$1 million a year, as compared to the current threshold of $500,000. The Senate
version provides a bigger windfall for the very rich by reducing the top
bracket to 38.5 percent.
Both bills eliminate the alternative minimum tax, which almost
exclusively impacts the wealthy, and they both slash the tax rate on so-called
“pass-through” income reported by business owners.
Each bill allows corporations that have
stashed hundreds of billions of dollars
overseas to avoid US taxes, such as Apple and
Amazon, to repatriate their profits at a
sharply discounted tax rate even lower than
the new 20 percent corporate rate.
stashed hundreds of billions of dollars
overseas to avoid US taxes, such as Apple and
Amazon, to repatriate their profits at a
sharply discounted tax rate even lower than
the new 20 percent corporate rate.
The bills either sharply restrict or eliminate outright the estate
tax, which is currently paid by the wealthiest 0.2 percent of households. The
House bill doubles the exemption for an individual to $11 million and
eliminates the estate tax entirely in 2025. The Senate version doubles the
exemption but does not repeal the tax.
Either way, the change underwrites the right of the richest
households to pass on their wealth to succeeding generations,
institutionalizing the transformation of the United States into an oligarchy,
presided over by a semi-hereditary dynastic caste.
Other boons to business are included in both bills, including an
immediate 100 percent tax write-off for capital investments. Neither bill
eliminates or reduces the so-called “carried interest” loophole that allows
hedge fund, private equity and real estate speculators (such as Donald Trump)
to pay only 20 percent on their income instead of the normal tax rate,
currently almost twice as high.
This is in line with the legislation as whole. While shifting the
tax code to further redistribute the social wealth from the bottom to the top,
it particularly favors the most parasitic sections of the ruling class, those
engaged in financial manipulation.
In order to promote the fiction that the overhaul is geared to the
“middle class,” the bills include certain tax breaks, such as a doubling of the
standard deduction for taxpayers who do not itemize and an increase in the
child tax credit. However, they also rein in or eliminate existing tax
deductions that benefit working class and middle class households.
This is driven above all by the need to keep the total ten-year
deficit resulting from the legislation to $1.5 trillion. That limit must be met
in order to move the tax overhaul on an expedited basis through the Senate,
where the Republicans have only a 52 to 48 majority, ruling out a filibuster
and enabling passage by a simple majority.
The House bill eliminates the federal tax credit for state and
local income and sales taxes, but continues the write-off for state and local
property taxes, capping it at $10,000. It reduces the existing tax reduction on
mortgage interest payments as well as a tax break on medical expenses. It also
eliminates tax credits for student loan payments and imposes a tax on graduate
student stipends. These measures amount to a tax surcharge on workers, young
people and the elderly to help pay for the tax boondoggle for the rich.
The Senate version calls for a somewhat different package of added
tax burdens for the working class and middle class. It eliminates all state and
local tax deductions but retains the tax credits for mortgage interest, student
loan payments and medical expenses.
The Republicans are resorting to brazen
lying to present the legislation as a boon to “hard-working middle class
Americans.” Typical is an op-ed column published Friday in the Washington
Post by Orrin Hatch of Utah, the chairman of the Senate
Finance Committee. “For too long, middle-class Americans have struggled with
stagnant wages, sluggish labor markets and economic growth well below the
historic average,” he writes. “It is time to pay attention to those Americans
who have felt left behind in economic stagnation, by providing tax relief and
economic opportunity.”
The line is that corporate America will use the trillions in tax
savings to buy new equipment, build new factories, hire more workers and raise
wages. This ignores the fact that US corporations already have access to cheap
credit, are making bumper profits, and are sitting on trillions of dollars in
cash. It also ignores the past record of tax cuts for big business, whether
under Reagan or George W. Bush, which pushed up stocks and the wealth of the
ruling elite while accelerating the destruction of jobs and working class
living standards. The same lying pretext was used to justify Obama’s bailout of
the banks.
In fact, the extra trillions will be used to buy more and bigger
yachts, private planes, mansions, penthouses, private islands and gated
communities and bribe more politicians to do the bidding of the oligarchs.
One indication of the two-faced character of the Democrats’
opposition is the fact that interest groups backed by Republican billionaires
such as the Koch brothers and Sheldon Adelson have thus far spent almost $25
million on TV ads to promote the Republican tax plan, while Democratic groups
have spent less than $5 million to oppose the plan.
An updated analysis of the House bill published Wednesday by the
non-partisan tax center spells out in detail how the tax overhaul is designed
to sharply increase the wealth of the richest 5 percent, and especially the
richest 1 percent and 0.1 percent, and vastly increase over the next decade the
concentration of wealth at the very top.
Under the so-called “Tax Cuts and Jobs Act,” in 2018, taxpayers in
the top 1 percent (with income above $730,000) will receive nearly 21 percent
of the total tax cut, an average of about $37,000, or 2.5 percent of after-tax
income.
Those in the top 5 percent income bracket,
and especially the top 1 percent and top 0.1
percent, will get by far the biggest percentage
gains in after-tax income. In other words, if
you are among the very rich, the rate of
increase you receive will be far higher than for
the lower 95 percent. That means the plan is
designed to widen the gap between the very
rich and everybody else.
and especially the top 1 percent and top 0.1
percent, will get by far the biggest percentage
gains in after-tax income. In other words, if
you are among the very rich, the rate of
increase you receive will be far higher than for
the lower 95 percent. That means the plan is
designed to widen the gap between the very
rich and everybody else.
In 2018, the top 20 percent of income earners will get 56.6
percent of the total federal tax cut. Within the top 10 percent, the 90-95
percent group will get 7.4 percent of the total, the 95-99 percent group will
receive 14.8 percent, the top 1 percent will get 20.6 percent and the top 0.1
percent will receive 10 percent. In other words, within the richest 10 percent,
the benefits are skewed dramatically to the richest of the rich.
One decade out, by 2027, the transfer of social wealth to the very
rich will be even more pronounced. In 2027, taxpayers in the bottom two
quintiles (those with income less than about $55,000) will see little change in
their taxes, with a tax decrease of $10-$40. Taxpayers in the middle of the
income distribution will see their after-tax incomes increase by only 0.4
percent. Taxpayers in the top 1 percent will receive nearly 50 percent of the
total benefit.
Someone in the top 1 percent will get a break of $52,780. Someone
in the top 0.1 percent will get a tax cut of $278,370.
In total, 12.8 million households will
have a bigger tax bill in 2018 under the law, including more
than three million earning between $48,600 and $86,100. By 2027, more than 11
million households in this income group will see their tax bills increase.
Overall, by 2027, 47.5 million households, a quarter of the total, will have a
tax increase.
THERE'S NOT ONE BILLIONAIRE, INCLUDING THE SWAMP KEEPER, WHO IS NOT FOR AMNESTY, OPEN BORDERS AND HELL NO TO E-VERIFY AND HIRING AMERICAN!
Trump's Mar-a-Lago gets approval to hire 70 foreign workers because there aren't enough Americans willing to do the jobs
- Managers claim there aren't enough Americans qualified and willing to do work
- Trump's hiring of foreign workers was criticized during the 2016 election
- Trump defended Mar-a-Lago's hiring practices, saying not enough Americans apply for its low-end service jobs
- Mar-a-Lago has been approved to employ 35 foreign waiters, 20 cooks and 15 housekeepers to help serve its 500 members starting this month through May 31
- The waiters will receive $11.88 an hour with no tips, the cooks $13.34 an hour and the housekeepers $10.33 an hour
- The waiters' and cooks' wages are slightly above the national average
- The housekeepers' are slightly below, per Labor Dept. statistics
President Donald Trump's Mar-a-Lago club has received permission to hire 70 foreign workers to fill out its staff during its upcoming busy season, after managers attested there aren't enough Americans qualified and willing to do the work.
The president's hiring of foreign workers at the Florida resort over several years was criticized by his opponents during the 2016 campaign after he slammed companies for moving jobs out of the U.S. and others for hiring immigrants in the country illegally.
During the Republican primary debates, Trump defended Mar-a-Lago's hiring practices, saying not enough Americans apply for its low-end service jobs and if his managers didn't recruit outside the country 'we might as well just close the doors.'
Trump Organization spokeswoman Amanda Miller did not return calls and emails seeking comment. Janine Gill, Mar-a-Lago's personnel director, also did not return a call.
Trump visited Mar-a-Lago seven times after his January 20 inauguration and is expected back this season, perhaps as early as Thanksgiving.
President Trump's Mar-a-Lago resort has received approval to hire 70 foreign workers for its upcoming busy season. The Florida club pictured above in April
Under requests approved by the U.S. Labor Department, Mar-a-Lago can employ 35 foreign waiters, 20 cooks and 15 housekeepers to help serve its 500 members starting this month through May 31.
The waiters will receive $11.88 an hour with no tips, the cooks $13.34 an hour and the housekeepers $10.33 an hour. The waiters' and cooks' wages are slightly above the national average for those fields and the housekeepers' slightly below, according to Labor Department statistics.
Trump (pictured above in Vietnam on Friday) came under fire in the 2016 presidential race for his hiring of foreign workers, especially since he blamed immigrants for stealing jobs from Americans
Mar-a-Lago has made similar requests in recent years, ranging from 88 employees in 2014 down to 64 last year.
Many other high-end resorts and clubs in Palm Beach County annually receive similar approvals from the government, including 141 foreign employees this year for The Breakers, a historic beachfront hotel near Mar-a-Lago, and 65 for The Polo Club of Boca Raton.
All are offering wages roughly similar to Mar-a-Lago, according to their Labor Department filings. The area's peak tourist season is from about Thanksgiving to Easter.
The workers are hired under the H-2B visa program, which is for seasonal, non-agriculture employees and is capped at 66,000 nationally per year.
The State Department says all visa applicants are screened against law enforcement and counter-terrorism databases, but would not say whether Mar-a-Lago applicants get extra scrutiny.
Peter Ricci, director of Florida Atlantic University's hospitality and tourism program, said most foreign workers hired by Palm Beach County resorts are students from Ireland, South Africa, Portugal and the Netherlands who are fulfilling a graduation requirement.
Ricci, who has studied and worked with the local resort industry, said most American hospitality students don't want to work as servers but want to get into a management trainee program, while the foreign students see high-end waiter and service jobs as possible careers and are eager to take them.
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'The more upscale the type of venue, the more difficult it is to hire the type of (American) server or employee that we need,' Ricci said. 'With their culture from their home countries, (the foreign recruits) come with a more dedicated attitude for service that the recruiters just can't find enough of locally.'
Palm Beach County's unemployment rate is 3.6 percent, below the national rate of 4.1 percent. The county's Great Recession rate peaked at 11.6 percent in August 2010 and has been in a steady decline since.
Mar-a-Lago's members pay $14,000 annual dues for access to the 17-acre (6.9-hectare) estate, with new members paying a $200,000 initiation fee that doubled earlier this year.
Trump purchased Mar-a-Lago - 'The Greatest Mansion Ever Built,' according to its website - from the foundation of cereal heiress Marjorie Merriweather Post in 1985 for $10 million and has invested tens of millions of dollars improving the property. He opened it as a club in 1995.
The property now boasts 58 bedrooms, 33 bathrooms, a 20,000-square-foot ballroom, tennis and croquet courts and three bomb shelters. Members pay extra to dine and stay on the property.
VISUALIZE REVOLUTION!
VISUALIZE REVOLUTION!
VISUALIZE REVOLUTION!
"Today, each of the top 5 billionaires owns as much as 750
million people, more than the total population of Latin America
and double the population of the US."
BOOK:…..TRAGIC!
THE DEATH GAP: INEQUALITY IS KILLING AMERICA!
CALL IT OBAMA-CLINTONOMICS OR TRUMPERNOMICS FOR THE SUPER RICH!
Three billionaires are wealthier than half the US population
10 November 2017
According to a report published Wednesday by the Institute for Policy Studies, the three richest Americans—Jeff Bezos, Bill Gates, and Warren Buffett—now own more wealth than the poorest half of the US population, some 160 million people.
America’s “60 families,” whose massive wealth was documented in journalist Ferdinand Lundberg’s 1937 exposure, have been replaced by just three billionaires whose combined wealth is over $264 billion.
The Institute for Policy Studies report,
“Billionaire Bonanza: The Forbes 400 and
the rest of us,” reveals that the richest 25
Americans are wealthier than the bottom 56
percent of the US. The net worth of the 400
richest is roughly equal to that of the bottom
two thirds of the country, a total of 200
million people. According to the report’s
authors, the US has become “a hereditary
aristocracy of wealth and power.”
The unprecedented concentration of wealth is an international phenomenon. Oxfam reported in June 2017 that the world’s 5 richest people own as much as the poorest half of the world’s population, down from 80 people in 2015. Today, each of the top 5 billionaires owns as much as 750 million people, more than the total population of Latin America and double the population of the US.
The IPS report explains that the US data “underestimate[s] our current levels of wealth concentration” because “the growing use of offshore tax havens and legal trusts has made the concealing of assets more widespread than ever before." A 2017 report published by Alstadsaeter, Johannesen, and Zucman titled “Who owns the wealth in tax havens?” estimates that the world’s superrich have between $5.7 and $32 trillion hidden from taxation or statistical analysis.
While the superrich dominate the commanding heights, the bottom 90 percent face hardship and crisis that vary only in terms of immediacy. The IPS report measures the net worth of working class families by subtracting the value of durable goods like automobiles, household appliances and furniture. According to its estimate, over 19 percent of US households—roughly 60 million people—have “zero or negative net worth” when durable goods are subtracted.
Beyond the poorest 20 percent, the report explains, “even those low- and middle-income families who do have some wealth often don’t have any liquid assets—cash or savings—at their disposal. Over 60 percent of Americans report not having enough savings to cover a $500 emergency.”
Even above the roughly 200 million people with nothing saved, conditions for the 60th to 90th percentile are similarly difficult. The bulk of this section of the working class’s net worth derives from housing equity, and when this is subtracted, most lack enough to survive through a few years of retirement. According to a recent study of Census data by the Economic Policy Institute, retirement account savings have plummeted in recent years among all age groups.
The IPS report is based on data from the US Federal Reserve’s Survey of Consumer Finances, which the World Socialist Web Site analyzed in detail last month. While the extremely wealthy have accumulated vast sums of wealth, a broader layer, comprising the top 10 percent, has also greatly enriched itself in recent years at the expense of the working masses. The richest 10 percent of the US—the social and political base for gender and identity politics—owns 77.1 percent of total wealth, while the bottom three quarters owns just 10 percent.
The explosion of social inequality is not an accidental process. It is the product of a decades-long campaign by both the Democratic and Republican parties to transfer trillions of dollars from the working class into the pockets of the rich. The “accomplishments” of both parties over the course of the last forty years are a litany of tax cuts for the wealthy, cuts to social programs, the deindustrialization of broad swaths of the Midwest, gutting corporate regulations and spending trillions on imperialist war, state surveillance and mass deportation and incarceration.
The Obama administration marked a milestone in this protracted social counterrevolution defined by the Wall Street bailout of 2008-2009, the restructuring of the auto industry in 2009 and the bankruptcy of Detroit in 2013-14. With the help of the Democratic administration, the ruling elite cashed in on the financial crisis.
As a result, the United States is now an oligarchy. Through its immense wealth and control of the major corporations, the superrich have established total domination over all of the official institutions of political, cultural and intellectual power.
The courts, the congress, and the president not only operate on behalf of competing interests within the aristocracy, they are increasingly personally staffed by millionaires and billionaires, as expressed most directly in the figure of Donald Trump. The military wages permanent war across the globe to protect corporate profits. The mainstream media is nothing more than the official propaganda wing of the American oligarchy. The trade unions, in their typically brutish and corrupt form, are paid off by the corporations to police the workers and suppress opposition.
The obsessions and preoccupations of this privileged layer of the population are entirely alien to the concerns of the bottom 90 percent. The cost of health care is skyrocketing; thousands of immigrant families are torn apart each week by deportation; nearly 100 people die each day from opioid abuse; student debt crushes a whole generation; millions remain devastated by floods, fires and hurricanes; entire states have been stripped of women’s health clinics; one veteran commits suicide every 80 minutes; and on and on.
Congress holds no hearings on these subjects. Its calendar is booked full with hearings on alleged Russian interference in US politics and the need to bring social media and tech companies to heel by censoring antiestablishment media. The Democrats and Republicans are working around the clock to reach a deal on a tax bill that will hand over trillions to the wealthy and corporations, with Senate Republicans announcing their version just yesterday.
The astronomical growth of inequality and the absence of any institutional mechanisms by which the population can address its social grievances presages an historic explosion of the class struggle. Strikes and protests involving tens of millions of workers and youth are inevitable, but they must be guided by a socialist program.
The billionaires’ wealth must be expropriated and redistributed to those in need. The corporations through which they derive their riches must be seized, placed under democratic control and reorganized by the workers themselves to serve public need and not private profit.
Companies like Bezos’ Amazon can be used to deliver medicine, food, water and construction equipment to disaster zones and impoverished areas. Gates’ Microsoft software and programming development can be harnessed to introduce an unprecedented degree of social planning into the world economy, allowing for production to be controlled so as to eliminate scarcity of basic resources and reverse environmental degradations. All industries can be made to serve the interests of the human race.
Under socialism, across all industries and in all countries, workers will come together in their workshops, plants and offices to plot a course for wielding the world’s productive forces in pursuit of equality and progress. But the ruling class will not give up its wealth voluntarily.
Eric London
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