Tax Cuts and the MSM Reporting:
So the administration puts out a blueprint for the tax cuts promised. It’s an outline that they say is being worked on with congress. The outline is clear. Three brackets, reduced rates and deductibles. Why limited details? Optics, they wanted something out before the 100 days mark.
The MSM reaction is incredible. All they want to know is how does this impact Trump’s taxes. “Where are his taxes”? The morning shows today were all about this.
GMA spent two thirds of it’s interview with the Treasury Secretary not on the plan, but on how it impacts Trump. Why?
The NYT lead story today is:
“White House Proposes Slashing Tax Rates, Significantly Aiding Wealthy”.
Their opinion page has this:
” This Isn’t Tax Policy, It’s a Trump-Led Heist”.
How biased is the media they can’t cover a proposal fairly? Our thoughts:
It’s called a tax cut. It is to revive a stagnant economy.
A tax cut means a cut for all. Last I looked the President was a tax payer.
Is the media saying if Trump might get a cut that you shouldn’t either?
Do they want a plan that gives all Americans a cut except one person?
The plan lacks details (to follow) but no taxes on anyone for the first $24K sounds positive.
A 10% rate after that sounds fair.
We just need to know what that covers from $25K to ?
And what the 25% rate income tables are.
The highest brackets go from 39.6 to 35%. But the plan says no deductions other than home and charity. What does that mean for actual payments?
The MSM has already decided without seeing details.
To us the big issue is this. No deductions other than those two. That means a big fight and issue is coming. Follow this.
Citizens in big tax states like NY and California get to write off their state and local taxes as a deduction on their federal ones.
This plan eliminates that.
What that means to us is federal revenue will increase in big tax states.
The states with no income tax like Texas, Florida etc, will see a decrease.
There has long been a question on whether low tax states should have a larger federal bite because big tax states get a break.
This is the fight ahead! Buckle up for this one.
This rule by the way will not help Trump since his company is in NYC. The city and state have the highest combined tax rate. He will lose that deduction.
See if the MSM tells you that.
This simple change — if passed — will highlight the tax differences between the big and low tax states.
It could have a major impact on the future.
The lower corporate tax proposed is necessary for us to be competitive and companies to bring home trillions they are holding overseas. We doubt the congress (read that Democrats) will approve 15%.
It will likely end up 20%.
NAFTA:
The MSM ran all kinds of headlines and stories saying Trump backed off another promise. That promise to get out of the NAFTA agreement.
They delighted in saying he backed off.
Well the truth is this.
He made known as late as yesterday he was going to back off to apply pressure on Canada and Mexico.
Overnight the President spoke to the President’s of both countries and they agreed to open negotiations to make the agreement fairer to all.
So, the agreement is being reviewed to make it fairer to the U.S.
You and I might call that successful and say the President applied a negotiation strategy to drive those other countries to the table.
The MSM called it a failed promise.
We applaud the administration on this and commend their actions. Now get the deal done.
As for the MSM, everyday the trust and esteem we have for them declines.