A new voice has joined the chorus; the President of the New York Yankees has some words for Trump about the GOP's tax plan, and they're anything but flattering.
The GOP's tax plan has consistently been advertised as a benefit to the American middle-class and as a gift. According to President Trump, under the proposed plan, the average American citizens will experience the “biggest tax cut in U.S. history.”
However, expert analysts have concluded that the GOP's tax plan will not have such grandiose effects on the average American. Furthermore, there would be a significant tax break for the wealthiest 1% of Americans, including President Trump. This is mostly due to proposals to eliminate the estate tax and the alternative minimum tax.
What's Happening Now:
Both supporters and opponents of the Trump administration have openly discussed the negative effects that the GOP's proposed tax plan will likely have. The President of the New York Yankees and long-standing supporter of President Trump, Randy Levine, has publicly urged the president to reconsider supporting the tax-reform package, emphasizing that it will help special interests and cause great harm to the American middle-class.
Levine insists that the Republican leadership in Congress, which has repeatedly disappointed President Trump in the past, is continuing to do so. Consequently, this means that the Republican leadership is poisoning the tax cut plan with negative influence.
He fears that Trump's tax plan is treading dangerously close to the path of the swamp. He states that “when [Trump] ran and won, [he] ran on draining the swamp, not giving new life to it.” According to Levine, the loopholes that exist within the tax plan are a source of illegitimacy. He states that the tax cuts “may not even be tax cuts at all.”
Similar to the analysis of other experts, Levine argues that the GOP tax plan will serve the will of the wealthy through a loophole where some income can be reclassified as profits or distributions. Entities that “disguise income as profits or distributions,” such as Wall Street, hedge funds, private equity managers, and more, will be able to receive massive tax cuts.
This undercuts what President Trump campaigned for. Trump campaigned in defense of the people and was elected by those who “work hard, pay their mortgages, interest and property tax.” Levine argues that this tax plan will undoubtedly hurt the American public and this will result in a large defeat for the administration.
He calls the tax plan a “bad deal” that needs revision and renegotiation and concludes by saying “this, Mr. President, is a swamp deal.”
Almost as if in response to the criticisms towards the tax plan, on Monday, President Trump posted on Twitter and seemingly called for the revision of the tax plan. Despite claiming that it has garnered a considerable amount of support, he tweeted that “with just a few changes, some mathematical, the middle class and job producers can get even more in actual dollars and savings and the pass through provision becomes simpler and really works well!”
Trump is expected to meet with top Republican tax writers in the Senate, so we may see some revisions to the tax plan in the near future. Whether or not those revisions are significant enough to counteract the criticisms against the tax plan is yet to be seen.
H/T: The Hill