$4,000 Wage hike “Fake News” from the White House – whatever happened to Trump promise of “no taxes for a couple earning less than $50,000”


UPDATE to April 2017 post, Russian Dossier with complete text: DNC and Clinton campaign paid for Fusion GPS  report used by FBI to investigate President.


The following was emailed to me on Saturday from the White House.

TRUMP PENCE WEEKLY NEWSLETTER 10.21.17
TAX CUTS FOR REAL AMERICANS

President Trump is working harder than ever to bring tax reform to middle class Americans, including the biggest tax cut in American history. This week, the President took his case to conservative leaders, seeking their support in pushing Congress to pass a tax reform bill, he said, “We need…help…to get our tax cuts through the house, through the Senate, and to my desk for signature.” Now is the time for all Republicans in Congress and maybe even patriotic Democrats to come together and support major tax reform that will boost wages and deliver families a $4,000 annual pay raise. We must get Congress on board, in order to deliver tax relief to hard-working Americans. Call and remind your Representative and Senators to support the President’s Middle Class Miracle today.

Although I am retired and there is no boss to give me a pay raise, I imagined that, at least, my children and grandchildren would benefit, and perhaps send me a fancier birthday card or buy me a funny hat with all the extra cash in their checking accounts.

And after learning that I am a “Real American”, according to this government email, I wondered: “could this $4,000 pay raise be real?” I turned to YouTube, where your computer screen seems to come alive with the voice of Mr. Trump and Bill Nye, among others, and found the President making this same promise:

“My Council of Economic Advisors estimates that this change, along with a lower rate, would likely give the typical American household a $4,000 pay raise.

How does President Donald Trump and his merry band of GOP bean counters plan to work this miracle:

“We will eliminate the penalty on returning future earnings back to the United States. ..and we will impose a one-time low tax on money currently parked overseas so it can be brought back home to America – where it belongs.”

Mr. Trump said the other part of creating this magic pay increase in our wages will come from the GOP plan to lower the corporate tax rate from 35% to 20%, bring it below the average family’s tax rate of 25%.

Is there a fly in this ointment? Something the speechwriters overlooked, perhaps intentionally, just to get public support, what President Trump calls “Fake News”?

The facts are a typical household will indeed get $4,000, according to the White House economists, but that’s not $4,000 next year, but $4,000 in EIGHT years, or $500 a year, according to White House documents.

The pay raise promise assumes that corporations will bring overseas money back to the U.S. and invest it in raising wages, not paying dividends to their wealthy investors, or buying back stock, or paying executives even more obscene salaries.

This entire $4,000 fake news story originated from a statement by Kevin Hassett, the economist who chairs Mr. Trump’s Council of Economic Advisors (CEA), who said last week that if U.S. companies no longer left their foreign earnings offshore, “workers in 2016 would have received a raise of nearly 1 percent.”

“What if these firms didn’t do that for the next eight years?” Hassett said in a speech before a Washington tax-policy groups. “The median U.S. household income would get a $4,000 real income raise.”

The GOP wants to counter the truth that their plan will increase income taxes for many middle class families by eliminating the personal exemption and brutally cutting Mr. Trump’s progressive and thoughtful original standard deduction proposal. (Trump breaks campaign promise)

Meanwhile, House Republicans have passed a companion budget measure that will cost retirees some $48,000 by raising the Medicare eligibility age to 67 from 65. (GOP votes to cut Medicare)

Median wage in the third quarter this year was $868 a week, or $45,136

Even if inflation is 2% a year, the annual total after eight years will be $51,847, an increase of $6,711. The GOP promise of $4,000 is a safe bet – allowing for inflation alone.

The real tax savings will come to the very richest of Americans as hundreds of billions of dollars will be lost through eliminating the Alternative Minimum Tax and the Inheritance tax for estates worth more than $11 million. (Billionaires will rejoice)

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