Documentation. Witnesses. Facts. Truth. That's what they're afraid of.

Wednesday, December 28, 2016

Cutting Taxes without a Tax Cut

As Jason pointed out recently, eliminating Obamacare would provide a huge tax cut to the top 0.1% -- about $154,000 on average. Republicans also have plans to cut taxes beyond that through a massive cut to the corporate rate, but even that won't be enough for their big money donors. So how do Ryan, Trump, and the rest of the GOP continue to cut taxes when such policies are incredibly unpopular?

Just as eliminating Obamacare would provide a massive tax cut, privatization of our social safety net (Medicare, Medicaid, Social Security, and disability assistance) would provide billions in tax cuts to individuals and businesses.

For 99% of their employees, corporations pay 7.65% taxes for their share of FICA. The top 1% of workers have incomes that exceed $118k, and therefore employers will only pay 1.45% on the portion of income for workers exceeding that threshold (this is a mirror of what workers pay).

The average Fortune 500 company employs 52,900 workers. The bottom 99% of earners would be 52,371 workers. And the average earnings per worker is $48,098.63. So, ignoring the top end (the executives), we can see that a typical large company wold save $192.7 million if Paul Ryan is able to eliminate FICA. Add it up and you hit $100 billion per year just to the Fortune 500 companies. Now that's a tax cut.