Cutting the corporate tax rate from 35 percent to 20 percent was supposed to be accompanied by the elimination of deductions and loopholes that corporate tax attorneys had used for years to significantly reduce corporate taxes.
An examination of the tax proposal on Speaker Ryan's website showed no elimination of corporate deductions. Rather, it appears that the corporate tax reduction to 20 percent along with phasing out the estate tax and the new 25 percent pass-through tax rate for businesses and partnerships created a massive $5.5 trillion shortfall in revenues. Republicans decided to claw back $3.8 trillion by eliminating deductions for millions of individual and family taxpayers.
Nearly one-third of middle class families earning between $50,000 and $160,000 will face a higher tax bill as soon as 2018.
To pay for their corporate tax cuts Republicans plan to eliminate several popular family tax breaks such as deductions for state and local taxes, and possibly mortgage interest deductions. The GOP also eliminates tax credits for hiring veterans, the costs of adoptions, student loan interest and extraordinary medical costs.
This tax plan is a giveaway to corporations and the 1 percent. Eliminating the alternative minimum tax and the estate tax means many at the top will pay nearly nothing in taxes. Wealthy Americans will pass themselves off as "dummy" corporations to qualify for the new 25 percent pass-through rate to avoid their legitimate tax bill.
This proposal is being rushed through before public opinion derails it. It is a namked giveaway to corporations and thos at the top of the economic ladder.