"I’m pretty sure that, at some point, you will have heard tax cuts for individuals or businesses, such as those contained in the Tax Cuts and Jobs Act passed in December 2017, as ‘giveaways’ or ‘handouts’ to ‘the rich’ or corporations.
As California’s Rep. Barbara Lee put it last week,“President Trump pushed through a tax scam that gave unprecedented handouts to billionaires and corporations”
To see what nonsense this is, think about what happens when taxes are cut.
In 2017, a business, for example, would earn $100 million in revenues.
In this simplified example, it would then would pay $38.9 million of that in tax.
In 2018, the same business would earn $100 million in revenues.
Thanks to the tax cut, it would now pay $25.7 million of that in tax.
Where is the handout?
The giveaway?
The government hasn’t handed or given this business a cent.
Instead it has taken less of the businesses money from it.
A tax cut isn’t a ‘giveaway’, it is a ‘take-less-away’..."
Read on.
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