The Grand Illusion
Millions of Americans are looking forward to a federal income tax cut that won’t and cannot happen.
Both Donald Trump and the Republican Congress are touting a non-existent tax cut as part of Trump’s big beautiful (beautiful only in the eyes of certain beholders) bill, but to know or understand this, one has to know the full background of what happened more than seven years ago, which is an eternity in most people’s minds, particularly the minds of Trump supporters.
On January 1, 2018, the Tax Cuts and Jobs Act took effect, reducing tax rates and increasing exemptions, with a whole host of other provisions. These lower rates have been in effect ever since then, but would have expired at the end of this year.
What the “big beautiful bill” does is to make those earlier tax cuts permanent and make a few additional temporary tax cuts (from 2025 through 2028) for some income from tips, as well as make some modest increases in allowable deductions and add a few targeted tax deductions, such as auto loan interest payments on U.S.- made cars. The “cost” of all this is higher taxes on green and renewable energy generation and reductions in health care programs for the poorest Americans.
The bottom line? Very few will get significant tax cuts from what they paid last year, except for people with a significant income from tips. And something like 10 million Americans will lose various health and SNAP benefits, while scores of rural hospitals will face cuts that may force their closure.
But Trump gets credit for a non-existent tax cut, or more charitably, for making his 2018 temporary tax cuts permanent. So he gets popular credit for doing the same thing twice.
Meanwhile, from what I can tell, the Democrats haven’t even been able to point this out in any effective fashion, which doesn’t bode well for their chances in upcoming elections.
Yeats said it best:
“The best lack all conviction, while the worst
Are full of passionate intensity.”
Let’s hope the center holds for just a little longer, even if that seems optimistic.
Unfortunately explaining tax policy or actions related to such does not lend itself to quick explanations that can be exploited in a commercial or a TV clip that will be described to millions of voters. Your post demonstrates that perfectly. If you’d like to boil it down to something pithy, please do so and maybe someone can forward that on to the DNC. I suspect inflation form tariffs along with the message of transfer of trillions to the already wealthy might be the message come the midterms. Biut who knows what Turmp will do to flood the zone with BS by then?
Your title to this entry says it all to me, really. “The Phantom Tax Cut Con.”
It’s a con, all right. It’s all a con.
I wish Americans could wake up and see reality. He’s a real estate guy. He’s selling swampland.
It’s all a con!
It’s not a con permant tax cuts are just that. I love you liberal rich people don’t want people to keep their tips. Old people to pay tax on their social security. The illegals immigrants boo hoo don’t get snap or social security. Millions of us don’t care. Get real if you don’t like it adopt a bum buy them a house and pay for their food, healthcare, and a car including insurance.
First, I agree. Permanent tax cuts aren’t a con. Taking credit for them twice and making a big deal out of giving people what they already have is. Second, no one is taking away tip income. Third, I pay taxes on all my income. Why should the rich and those who are paid in tips not have to pay taxes on that income? Fifth, to get Social Security you have to be a legal resident or citizen of the U.S. and a record of earnings. Even SSI recipients have to be legal residents. Sixth, I’m certainly no liberal, and I’ve consistently opposed the excesses on both sides. Exposing Trump’s misstatements and lies doesn’t make someone a liberal.