The New Republican Tax Code:
CREATES AN EASY WAY FOR WEALTHY PEOPLE TO GAME THE SYSTEM, AND CLOSES VIRTUALLY NO LOOPHOLES
In other words: IN ORDER TO CHEAT AMERICA OUT OF BILLIONS OF DOLLARS, RICH PEOPLE JUST HAVE TO CALL THEIR ACCOUNTANTS.
One new provision of the Republican Tax Code allows owners of “pass-through” entities to deduct 20% of their business income from their taxes. So who’s getting the benefit from this new tax cut? Is it small business owners like Republican politicians claim? No. Only 10% – 10%! – of people claiming pass-through incomes are actually small business employers.
The vast majority of “pass-throughs” employ no one, and less than half even engage in any business activity at all. Most of the “pass-throughs” are just pieces of paper that rich people’s accountants use to help them avoid taxes with the help of the New Republican Tax Code. That 20% deduction isn’t a tool for small businesses, it’s a handout to rich people with enough money to form a fake company to funnel their money through.
IT CLOSES VIRTUALLY NO LOOPHOLES
Remember those hedge fund managers that President Trump railed against endlessly on the campaign trail, the one he said were “getting away with murder” by abusing the loopholes in the tax code? Well, Republican politicians rewrote the entire federal tax code and still couldn’t quite seem to close one of the most grotesque loopholes in the tax code – the carried interest loophole. They’re still getting away with murder.
This one loophole that most Americans have never heard of allows about 5,000 fund managers around the country to split up $1.8 billion a year by mischaracterizing their income as capital gains even though they have no capital of their own at risk. This one loophole nets some of the richest people in the country on average $300,000 each. Imagine how rich you have to be to get a $300,000 TAX REFUND.