A menu of options being circulated by congressional Republicans also includes new tax cuts for corporations and the ultrawealthyIn order to pay for the cuts, Republicans have started to eye some targets to raise money. Among them: cutting benefits for single mothers and poor people who rely on government health care.
The proposals are included in a menu of tax and spending cut options circulated this month by House Republicans. Whether or not Republicans enact any of the ideas remains to be seen. Some of the potential targets are popular tax breaks and cuts could be politically treacherous. And cutting taxes for the wealthy could risk damaging the populist image that Trump has cultivated.
For the ultrawealthy, the document floats eliminating the federal estate tax, at an estimated cost of $370 billion in revenue for the government over a decade. The tax, which charges a percentage of the value of a person’s fortune after they die, kicks in only for estates worth more than around $14 million.
Among those very few Americans who do get hit with the tax, nearly 30% of the tax is paid by the top 0.1% by income, according to estimates by the Tax Policy Center think tank. (Many ultra-wealthy people already largely avoid the tax. Over the years, lawyers and accountants have devised ways to pass fortunes to heirs tax free, often by using complex trust structures, as ProPublica has previously reported.)
Another proposal aims to slash the top tax rate paid by corporations by almost a third.In Trump’s first term, he brought the top corporate rate down from 35% to 21%, where it’s at now, taking the U.S. from a high rate compared to other OECD nations to about average. The proposed cut to 15% would make the United States’ rate among the lowest of such countries.To pay for new tax cuts, the House Republicans’ proposal floats a series of potential overhauls of government programs. One major focus is possible cuts to Medicaid, the health care program for people with low incomes that is administered by the states. Medicaid expansion was a key tenet of the Affordable Care Act, passed under President Barack Obama. Many Republican governors initially chose not to take advantage of the new federal subsidies to expand the program. In the intervening years, several states reversed course, and the program has expanded the number of people enrolled in Medicaid by more than 20 million, as of last year.Other proposals would eliminate tax breaks for families with children. Currently, parents can get a tax credit of up to $2,100 for child care expenses. The House Republican plan floats the elimination of that break. The cut is estimated to save $55 billion over a decade.Another proposal in the list of options takes aim squarely at parents raising children on their own. The provision would eliminate the “head of household” filing status to collect almost $200 billion more in taxes over a decade from single parents and other adults caring for dependents on their own.
Pragmatic politics focused on the public interest for those uncomfortable with America's two-party system and its way of doing politics. Considering the interface of politics with psychology, cognitive biology, social behavior, morality and history.
Etiquette
Friday, January 31, 2025
MAGA update: Reward the rich, screw the rest
Bits: EV update; American authoritarianism & kleptocracy updates
Thursday, January 30, 2025
The democratic governance illusion; The déjà vu illusion
Trump is clear about his intention to concentrate more power in the hands of the presidency, moving away from traditional Republican small-government principles. This includes using executive orders to bypass Congress. He reinstated Schedule F, allowing him to simply fire tens of thousands of federal employees. He intends to replace them with corrupt authoritarian loyalists. This is a significant threat to democratic governance, because it centralizes critical powers within the executive branch, reminiscent of tactics used by elected autocrats like Hungary's Viktor Orbán. There is nothing democratic in that.
So far, some of DJT's major actions in office align with historical patterns of authoritarianism and kleptocracy. Concerns about the direction of American governance under his administration are evidence-based and thus legitimate.
Americans are afraid, very afraid.
Fear is playing a bigger role in American life than at any time in recent history, according to the results of a new survey from Chapman University. Americans are afraid of more things, and they’re more afraid of those things than they have been in the past, the researchers suggest.
At the top of the list of fears in 2024? Corrupt government officials, cyberterrorism and loved ones becoming seriously ill or dying. Other fears include world powers deploying nuclear weapons, terrorist attacks, biological warfare and not having enough money for the future.
(Corrupt government? EGADS, it is gonna get a hell of a lot worse in 2025 in that case)
“This year, all of our top [ten] fears were expressed by more than half of Americans, and many were high throughout the rest of the survey,” says Christopher Bader, a Chapman University sociologist who worked on the survey, in a statement. “This tells me Americans are becoming more afraid in general, about everything.”






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