This is a fact: Corporations in the US had their highest profits in history when Trump gave them a tax reduction of $2.3 trillion. That is 2,300 billions! This took place during a time when our nation, and our own District 2B, which I have seen with my own eyes, just as you do everyday, were, and still are facing an opiod crisis, crumbling infrastructure, failing water systems, and a health care industry that is in crisis. While this tax cut did nothing to stimulate the economy it could have gone a long way to help each of these major concerns. Think of the jobs that could have been created in our district to work on these types of projects. We need good paying jobs in our district. Trump chose not to put money towards these immediate problems and the result is, a bankrupted economy. National debt in 2016: $19.9 trillion. National debt today: $26.7 trillion.
Recognizing that we now have a problem with this crippling deficit, because of his massive tax cut for the wealthy, Trump, the ultimate deal maker, made a deal. He proposed in his budget, 2 trillion dollars of cuts be made in medicaid, medicare, and social security benefits. That is his remedy to restore fiscal balance. In 2016 he said he would never cut medicare or social security. In fact, he accused Hillary of wanting to cut them. Just think how devastating this would be for the people living in District 2B.
In MN the Republicans have proposed a tax reduction from 5.35% to 4.9%. How would this affect the people of 2B?
If I did my math right, a single person with the maximum taxable income of $26,960 would save $121 per year if rates dropped from 5.35% to 4.9%. That’s about $2.33 per week or 33 cents a day.
A reduction in the lowest marginal tax rate would apply to income up to $26,960 for individuals and $39,410 for married couples, under the GOP plan, it is estimated that lowering the rate would cost the state about $440 million in all. The Republicans were proposing permanent tax cuts with one time surplus money. So, what happens when the surplus is spent?