Upset About the One-Sided Tax Bill? Here's What to Do About It!

The Tax bill will raise the deficit by $1.5 trillion and will likely do nothing for you personally. Don't just sit there

Republican Hypocrisy

The same Republicans who locked up the government under Obama for a month in a failed bid to prevent a hike in the debt ceiling, now thinks it's OK to increase debt by $1.5 trillion.

The average tax benefit for the average person making $100,000 a year is a mere $100.

Non-Reform

I am all in favor of tax "reform". However, the bill is anything but reform.

It does not kill the Alternative Minimum Tax, it has eight brackets vs four in the House version, and beyond 2027 it does not lower individual taxes to any extent at all.

Four companies, Apple, Cisco, Microsoft, and Oracle stand to gain an immediate windfall on $500 billion held overseas.

Cisco chief Chuck Robbins told CNBC that he would put the money toward a combination of dividends, buybacks and M&A activity.

Mergers, dividends, and buybacks will not create one job. In fact, mergers are likely to decrease jobs.

Spend Your $100 Wisely

By 2027 benefits dwindle for anyone making less than $100,000. ​I calculated the average annual gain for someone making $100,000 as $100.

Benefits dwindle even faster for the lowest wage earners, and in some cases increase.

Bill Deserves to Die

​This bill deserves to die, and the vast majority of the American public knows it.

  • More than three-quarters of respondents to a CBS News survey this month said it would benefit corporations, while less than a quarter said it would help their own family (and 69 percent said it would help the wealthy.)
  • A USA Today-Suffolk University poll released Sunday found 64 percent said the wealthy will get the most benefits, while just 17 percent said the middle class will.

What You Can Do

  1. Please call the U.S. Capitol Switchboard at (202) 224-3121. A switchboard operator will connect you directly with the Senate office you request. Tell them you do not want the tax bill to pass.
  2. Email your Senators Here is a Senate Contact Sheet. Open that page, find your senators and let them know what you think.

Don't Delay!

Please phone and email your senators, especially Collins in Maine, Rubio in Florida, McCain in Arizona, Lee in Utah, Corker in Tennessee, and Paul in Kentucky.

Make two calls. One to each of your Senators. Have your friends do the same. Let them know how you feel about this bill!

Mike "Mish" Shedlock

Comments (27)
No. 1-27
Roger_Ramjet
Roger_Ramjet

Yes, I could call my two republican senators here in North Carolina, but I'm not sure it would actually help. These are not principled "representatives", as exhibited by the dramatic flip by Corker. The least represented class in this tax bill are the people that actually vote. Polls show that voters are well aware that this bill disproportionately favors the wealthy. However, as is often the case, it remains to be seen if anything will turn at the next election. Maybe times are changing but never underestimate the average voter to vote against their own best interest.

Sechel
Sechel

how is more of the media not exposing the illogic of this tax bill and the claims that don't pass the sniff test?

douglascarey
douglascarey

"The Tax bill will raise the deficit by $1.5 trillion and will likely do nothing for you personally. Don't just sit there" You sound like Nanci Pelosi. First, it's the spending not the taxes. Tax revenues are at an all time high. So please don't sound like a democrat. We need lower taxes AND lower spending. Also, quit pretending our average tax cut is $100. That assumes taxes go back up in 2027, but they won't. Congress would never allow that to happen at that point. The "tax hike" in 2027 had to be put in there to satisfy the budget reconciliation rules. But they can always renew the tax cuts at that point, which they will at least for the middle class and lower tax brackets.

cecilhenry
cecilhenry

desgusting. Reduce income taxes on productive people. Taxes need to go down 50%. Fed up with being a surf

gk31
gk31

Mish, why only the focus on 2027? Isn't it disingenuous to use that year when all years between now and then are a larger tax cut. I agree that we need to reduce spending at least commensurate with the tax cut. It's not all bad.

KHS71
KHS71

My understanding is that it includes a repeal of the mandate.

Greggg
Greggg

Aren't you glad we have that provision in the Constitution that protects us from all that? Oh, wait... No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken.

ARTICLE I, SECTION 9, CLAUSE 4

shamrock
shamrock

That $1.4T increase doesn't sound that bad unless you include the fact that it's in addition to the $10T it will already be increasing. So now in 10 years the debt will be close to $32T and the annual deficit right around $1.5T.

Mike Mish Shedlock
Mike Mish Shedlock

Editor

"Mish, why only the focus on 2027? Isn't it disingenuous to use that year when all years between now and then are a larger tax cut. I agree that we need to reduce spending at least commensurate with the tax cut. It's not all bad." .... 2027 is the date at which no one below $100K makes a dime. Some tax brackets lose in two years. Perhaps I should have focused on that. Personally, I gain on passthrough. But I have to do what's right - not what works for me.

Realist
Realist

So in 10 years, at roughly 32 trillion, the US debt per taxpayer will be around $250,000. Good thing they will be saving $100/year in current taxes.

stillCJ
stillCJ

Editor

How much would the national debt increase if this bill fails? I need a comparison to make a judgement. Seems it always goes up anyway, and any lower taxes is better than nothing.

formula57
formula57

But given "​I calculated the average annual gain for someone making $100,000 as $100", just imagine when the large numbers of such high earners spend their $100 how amazing will be the trickle down effect! MAGA!

mark0f0
mark0f0

So basically its a give-away of tens of billions to a bunch of rich tech companies who have mostly spent the past two decades outsourcing and offshoring anything that they possibly could overseas. In effect, a reward for storing cash "overseas" (actually this is a big lie -- the 'cash' is invested in the US economy but is merely only 'titled' with offshore subsidiaries!) and destroying American jobs.

mark0f0
mark0f0

Since such firms are being rewarded for such behavior, why don't it accelerate? Why would Trump's ideological base of support, which has been heavily damaged through such offshoring, support Trump in the future? Are the Republicans and the Trump administration really so stupid as to try and pull the wool over the eyes of the American public? Trump has also been dragging his feet on H-1B visa reform, namely, cancellation of the H-1B and OPT programs as alluded to during the campaign.

TheLege
TheLege

Trump has totally back-stabbed his voter base. His 'volte face' is quite extraordinary. Only a certified idiot would bet on a 2nd term.

Ambrose_Bierce
Ambrose_Bierce

if they vote along party lines it won't mean much

Blacklisted
Blacklisted

If the socialist Dems and States hate it, along with countries that will be forced to lower taxes to compete for capital, it must be better than what we have now.

What is the average tax savings for someone making $100K in FL, and other low/no tax states?

It will attract more foreign capital, and even if it ends up in stocks, it will help pensions and CB's that are also buying stocks. The downside is it will increase the dollar, which will be highly detrimental to foreign entities that own too much dollar-based debt, not to mention the harm to exports.

Of course I would like to see lower individual rates, but until we have short term-limits, no real reforms will occur. Heck, income taxes should be eliminated, as the govt could simply print interest-free money to pay the bills, but how would the bankster make money.

El_Ted0
El_Ted0

One under report term of the new bill is that, although mortgage interest on your home (and 2nd home) is still deductible, HOME EQUITY LOANS no longer are. Many people who think they will still be able to itemize will be surprised to learn that all of their home interest isn't deductible. Some will be forced to refinance, simply to put their current mortgage and equity loans under a 'mortgage'. That's an idiotic and expensive exercise, simply to be able to deduct your home interest. At least it will be a final hurrah for mortgage brokers, until rising interest rates and the coming housing price-collapse destroys their industry.

Escierto
Escierto

It's kind of heart warming to see that Mish still believes that American politicians will respond to their constituents. It's like a kid still believing in Santa Claus or the Easter Bunny. The only constituents these guys have are the large corporations that fund their campaigns. Most of them are in gerrymandered districts and have nothing to fear from voters.

jeco
jeco

Doubling standard deduction should halve the number of tax preparers and could have interesting consequences on expensive real estate in high property tax states.

jeco
jeco

Per NYT the number of people benefitting from itemizing deductions will fall to 14% from 50% with new tax plan. Assuming itemized deductions are mostly mortgage and taxes everybody eats the first 12K of these deductions currently and this doubles to 24K with new tax plan.

jeco
jeco

There will be a lot of nooks and crannies how this will impact different situations but overall it's going to negatively impact owner occupied housing affordability. Second and vacation home values could really get hammered unless they get shifted to business type use to take mortgage and taxes as business expenses.(Lots of audits coming up there!)https://www.nytimes.com/2017/12/16/business/economy/tax-bill-housing.html?_r=0

mpowerOR
mpowerOR

this tax bill is an improvement over the status quo, but it is not "reform", and it is not even close to good enough...

mpowerOR
mpowerOR

Trump/GOP will not get a "bump" or "win" here... voters are too jaded & too cynical now... "reform" legislation had better be true reform (radical) or else the majority party will actually LOSE support for having passed more crony legislation... more of the same.

mpowerOR
mpowerOR

The majority party in US politics will have to become evermore radical (literally destructive - tearing down the status quo) or else lose power after one/two short election cycles... voters are less patient & more angry than most realize, and this equates to more radical politics across the political spectrum.

jeco
jeco

This tax bill is simply a brazen reward to the most generous lobbyists, rushed thru with lots of nasty surprises buried within