Class Warfare Blog

March 1, 2018

The Tax Cut Was for the Rich? Really?

If you are in the U.S. you should have gotten your tax cut by now. This is in the form of revised withholding tax based upon new tables. Since taxes will be lower, then less needs to be withheld from your paychecks each month and the withholding tables were adjusted beginning in the month of February.

I checked my withholding and voila … I had $164.88 less withheld last month. Multiply by twelve and that means I have $1978.56 more money available for the coming year. Now, I do not trust these calculations. That is just what is being withheld, it is not the actual tax which I will not learn about until a month or so into 2019, so I am squirreling away some of that windfall just in case.

So, my taxes, presumably, are being cut almost $2000. I wonder how well some of the rich folks did?

Warren Buffet, of Berkshire-Hathaway fame, reports that his company made $29 billion dollars the same way, wait … twenty-nine fucking billion dollars!

Okay, well that is a very wealthy company, how does that stack up against its earnings otherwise? The company’s annual statement declares:

“But 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire. The $65 billion gain is nonetheless real — rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.”

So, this very successful company made $36 billion dollars through its own efforts … and then $29 billion more in the form of a GOP handout. But, we can be sure that B-H will spend all of that money to boost the economy … or maybe issue bonuses to its few employees … or maybe raise the wages of those few employees. But wait, B-H owns a whole bunch of companies and, in toto, they have 367,700 employees. With that $29 billion they could give each of them $7887, but my guess is that that won’t happen. I won’t be holding my breath for any such miracle as large corporations are doing exactly what they did the last time they got a tax cut. They are buying back their own stock, which raises the price of said stock, which benefits shareholders (84% of all common stock is owned by members of the top 10%), especially a subgroup of shareholders called “corporation executives.” Yep, the people who directly benefit from this action are the people deciding on that action. Anyone surprised at this needs to get a reality check done.

Oh, and the GOP is expecting the “tax cut” to win them the next election. Ha ha ha ha ha … I guess that could happen if the opposition were total morons … oh, wait …

 

 

 

Advertisements

19 Comments »

  1. If I recall correctly, didn’t the tax law also put an expiration on those cuts for the non-wealthy?

    Liked by 1 person

    Comment by Sirius Bizinus — March 1, 2018 @ 9:10 am | Reply

    • Yep. You have to cap the really expensive part, otherwise things will get out of hand. The corporate handout keeps going, and going, …

      On Thu, Mar 1, 2018 at 9:10 AM, Class Warfare Blog wrote:

      >

      Liked by 2 people

      Comment by Steve Ruis — March 1, 2018 @ 9:12 am | Reply

      • Have you seen Saving Capitalism on Netflix? It was done by Robert Reich, one of Clinton’s former cabinet members. It had a pretty good take on corporate welfare and why it’s a terrible thing.

        Liked by 1 person

        Comment by Sirius Bizinus — March 1, 2018 @ 9:15 am | Reply

        • Yep, well worth viewing. Basically, if you haven’t read/viewed much about this topic, it is simply the case that capitalism cannot (not just does not) work in the absence of regulations. so the discussion should be “how do we regulate our system” yet the discussion is being framed by people who do not want it regulated at all (unless it is to favor their interests, then it is okay).

          On Thu, Mar 1, 2018 at 9:15 AM, Class Warfare Blog wrote:

          >

          Liked by 2 people

          Comment by Steve Ruis — March 1, 2018 @ 9:21 am | Reply

  2. Well a decrease in the rate of increase is not really a decrease. Go tax laws!

    Liked by 1 person

    Comment by jim- — March 1, 2018 @ 9:13 am | Reply

  3. I don’t know if GOP so much expects the tax cuts to win the next election as it aimed to finally repay their donors – those people who get tax cuts worth millions, not a few hundreds.
    Of course, having satisfied its donors, GOP will have more money to push its story of being the party that grows the economy. Unfortunately for GOP, the economy isn’t likely to sustain its today’s relatively good shape until 2020 (good shape compared to 2008-2009) – we’re way overdue for a downturn and while the tax reform might prop up the stock markets for longer, the rest of us didn’t get that much extra cash in our pockets (for me, it would be around $300 or so) to prop up the consumer spending that’s really driving the economy.

    Liked by 1 person

    Comment by List of X — March 1, 2018 @ 12:55 pm | Reply

    • It is more like they paid off their wealthy donors and then “let’s see what else we can squeeze out of this thing.”

      On Thu, Mar 1, 2018 at 12:55 PM, Class Warfare Blog wrote:

      >

      Like

      Comment by Steve Ruis — March 1, 2018 @ 9:49 pm | Reply

  4. I have to say something about B-H that some people may not know. Last year we were considering buying a home on the Oregon coast. A particular RE agent was recommended to us by a friend so we met with her and she provided some guidance for our search. As it turned out, we found a home we wanted and asked her to write up an offer. And this is where it gets interesting.

    Included in the process was a $50 charge — that goes directly into the coffers of B-H (not to the agent)! When she told us this, we looked at each other in disbelief. We countered by saying we would pay 1/2 of that amount — which meant she would have to pick up the other half. She definitely didn’t like our offer but she very begrudgingly agreed

    As it turned out, the sale didn’t go through, but I think you can pick up on the point of the story. No wonder these guys are wealthy!

    Liked by 1 person

    Comment by Nan — March 1, 2018 @ 3:08 pm | Reply

    • $50? I bought a house recently and it involved a ton of charges, among which a $50 charge would be one of the smallest ones. What was the charge for?

      Like

      Comment by List of X — March 1, 2018 @ 8:00 pm | Reply

      • It was just a tacked on charge supposedly to cover the costs of drawing up the paperwork to present to the seller — yet the agent didn’t get any of it. It was strictly a mandatory charge required by Berkshire.

        Like

        Comment by Nan — March 1, 2018 @ 8:10 pm | Reply

        • I remember the good old days when businesses paid their own overhead out of what they charged us. Then they reach a limit of what we were willing to pay and then added on “fees” like the airlines to carry our bags, or the fabulous “origination fee” when buying an automobile, etc.

          On Thu, Mar 1, 2018 at 8:10 PM, Class Warfare Blog wrote:

          >

          Like

          Comment by Steve Ruis — March 1, 2018 @ 9:55 pm | Reply

  5. One capitalist economic policy under both parties … or the 2 headed Repub/Dem party. Remember, the large jumps in the gap between rich and poor that took place under both Clinton and Obama. It is, after all, post FDR, the American way.

    Liked by 1 person

    Comment by Zach — March 1, 2018 @ 3:25 pm | Reply

  6. I read that one of the things being discussed in the House of representatives is taxing social security benefits not now being taxed. For many people that is a huge cut to their income as social security is their only income. I am beyond any ability to understand how anyone can justify letting the poorest suffer and possibly die just to increase the income of people who already have enough to not have to worry about funds. My hubby Ron says these politicians are evil people, but as I do not believe in evil as a existing force, I can not understand what has died in these people that they can even think of doing these things. Maybe I am just stupid. Hugs

    Liked by 1 person

    Comment by Scottie — March 1, 2018 @ 6:40 pm | Reply

    • You’re NOT stupid … just baffled beyond words like the rest of us.

      What I think might be going on is the “powers-that-be” simply look at numbers. They have no concept of what those numbers mean to PEOPLE. IOW, we (the people) are non-entities. Isn’t that a comforting thought?

      Liked by 1 person

      Comment by Nan — March 1, 2018 @ 7:26 pm | Reply

      • That’s not really baffling at all. Politicians do not represent people, they represent donors. You can’t win elections without money – while in the two-party system pretty much any Democratic or Republican candidate in a general election is guaranteed 30-40% of the vote in an average district. But to get to the general election, you need name recognition (or a better name recognition than your opposition), and unless you’re already a celebrity or an established politician, that requires money.
        Limit all political donation per registered voter (none per ogranization) per year to a few hundred dollars, and you’ll suddenly see a lot more politicians caring about whether Social Security benefits are taxed.

        Like

        Comment by List of X — March 1, 2018 @ 7:56 pm | Reply

        • I do understand that part of it. I was addressing the idea that a large group of people are willing to take actions they know will causes great harm to their fellow humans to earn favor with those who have little chance of getting harmed. I am talking basicly knowing what you are doing is going to cause great hurt, harm, possible death to humans without it seeming to affect the person doing it. I couldn’t do what they are doing emotionally, I couldn’t handle cutting food assistance while at the same time giving billionaires more money. So as I couldn’t do what they are doing, as I can’t support the programs and actions they are pushing, I simply can not understand how they can do it. I feel stupid because I see humans, I see human suffering, and I have empathy. I do not understand why the politicians , mostly the republicans do not have empathy for their fellow humans. Hugs

          Liked by 1 person

          Comment by Scottie — March 1, 2018 @ 8:10 pm | Reply

          • Oh my goodness, do not say “ethics” or “morals” in front of any of those politicians or they will whip out their government issued 10-foot pole (with the recently invented 10-foot extension) and still won’t reach out and touch the topic.

            On Thu, Mar 1, 2018 at 8:10 PM, Class Warfare Blog wrote:

            >

            Liked by 1 person

            Comment by Steve Ruis — March 1, 2018 @ 9:56 pm | Reply

        • Yep, the real problem is the money in politics. As long as politicians are up for sale, we can’t afford them. (If you have to ask, you can’t afford it.)

          On Thu, Mar 1, 2018 at 7:56 PM, Class Warfare Blog wrote:

          >

          Like

          Comment by Steve Ruis — March 1, 2018 @ 9:53 pm | Reply

    • No, you are not stupid. The politicians have been selected for the ability to stand in front of a camera comfortably and to be bought and stay bought. They turn out to also be mean and stupid and that is a bad combination.

      The idiocy of the government cutting people a welfare check (SS) and then taking some of that money back is past ridiculous.

      On Thu, Mar 1, 2018 at 6:40 PM, Class Warfare Blog wrote:

      >

      Liked by 1 person

      Comment by Steve Ruis — March 2, 2018 @ 11:43 am | Reply


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Create a free website or blog at WordPress.com.

%d bloggers like this: