GOP Tax Cut Plan for the Rich

 

President Trump went to Indiana to pitch his latest tax proposal in front of a small crowd gathered at the State Fairgrounds. Most people weren’t fooled by Trump’s lies about the plan, with many news organizations, including The New York Times, Washington Post, and the Wall Street Journal calling the plan out for what it is: a tax cut for the wealthy. Yet, it seems important to highlight the most egregious of his statements.

 

CLAIM: “I’m doing the right thing and it’s not good for me, believe me.”
REALITY: The estate tax only applies to married couples worth more than $11 million, so it doesn’t have any impact on most small businesses or farmers. A study conducted last year by the Economic Research Service at the Department of Agriculture found that only 0.42 percent of operating farms would actually owe an estate tax. Who would face the estate tax? Trump’s own family.

 

CLAIM: “Today, our total business tax rate is 60 percent higher than our average foreign competitor in the developed world.”
REALITY: While the top corporate tax rate in the U.S. is one of the highest among major economies, this is only true on paper. In practice, U.S. companies end up paying far less than the listed rate due to deductions and credits lowering the business’ tax liability. Therefore, the effective tax rate—or what corporations actually pay—is roughly in line with comparable countries’ rates.

CLAIM: “And for the millions of small businesses and farms that file their taxes as sole proprietors, S corporations or partnerships, we will cap the tax rate they pay at 25 percent — much lower.”
REALITY: Here, Trump is referring to pass-through businesses, or businesses that don’t pay the corporate income tax and instead include business income on the personal income tax return of the business owner. Most pass-through business income actually goes to millionaires and big businesses. In fact, the Trump Organization is a pass-through business, and therefore would see its rate lowered from 39.6 percent to 25 percent.

 

CLAIM: “Ronald Reagan used [tax cuts] to create an economic boom in the 1980s.”
REALITY: Let’s all say it together one more time: trickle-down tax cuts don’t work to improve the lives of working families! In fact, they only “widen inequality between the top 1 percent of income earners and everyone else.”

 

CLAIM: “I’m doing the right thing and it’s not good for me, believe me.”
REALITY: Trump’s tax plan would be great for Trump and his wealthy friends. In addition to killing the estate tax, his plan also eliminates the alternative minimum tax, which “prevent[s] very wealthy Americans from using deductions and loopholes to skimp on their taxes.” This tax once cost Trump $31 million in taxes, which is probably why he’s so eager to see it disappear. And don’t forget that Trump’s proposal would decrease the top tax rate from 39.6 to 35 percent.

Posted In: Union Matters

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work