{"id":248733,"date":"2017-09-28T12:30:00","date_gmt":"2017-09-28T16:30:00","guid":{"rendered":"https:\/\/admin.rushlimbaugh.com\/?p=248733"},"modified":"2017-09-29T16:05:10","modified_gmt":"2017-09-29T20:05:10","slug":"what-i-was-told-about-the-trump-tax-plan","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2017\/09\/28\/what-i-was-told-about-the-trump-tax-plan\/","title":{"rendered":"What I Was Told About the Trump Tax Plan — And What I Think About It"},"content":{"rendered":"

RUSH: First is the tax plan. And I\u2019m gonna tell you right off the bat I have watched some cable news last night and today \u2019cause I broke my promise to myself. I wanted to see what was said about it, and it is incredible. And I want to tell you that if you\u2019re watching any of the three networks or CNN or MSNBC, do not believe what you\u2019re hearing.<\/p>\n

It is not trickle-down. It doesn\u2019t even come close to trickle-down. It does not benefit the rich. It does not punish the middle class or the poor. It doesn\u2019t do any of the things the Democrats and the media are saying about it. They are attacking this plan like they\u2019ve been attacking every tax cut since Reagan\u2019s.<\/p>\n

They have a playbook, and they have a script, and they have things to say. It doesn\u2019t matter what\u2019s actually in the plan. They just, as robotically as they can — doesn\u2019t matter, Schumer, Pelosi, whoever — stride to the microphones and cameras, and they start denouncing it the same way they denounce every Republican-proposed tax plan since 1986, and I\u2019m telling you, don\u2019t believe any of it. I\u2019m gonna tell you what\u2019s in this plan. I had it explained to me last night, and let me tell you how that started.<\/p>\n

I got a phone call from a ranking Republican who wanted to fill me in, clue me in on the tax plan. He wanted to give it to me straight, wanted to give it on me man on to man, heart to heart, before it was distorted. So I heard the details that the Republicans think are important, and in no particular order, here it is: We\u2019re going to reform the tax code so that you and 99% of Americans can fill out their tax forms on a postcard. We are reducing seven rates to three. The rates are going to be 12%, 28%, and 39.6%.<\/p>\n

I was told the top rate is not coming down — to 35% or anything else. I was told that there isn\u2019t a surcharge on the rich. I was told that state and local taxes will no longer be deductible on your federal return. Now, if that holds up — and none of this has even been officially presented and a lot of this is gonna change before the vote on it. If they do — and they want to vote on it in December. But let\u2019s just treat this as the thing that actually goes through Congress and gets voted on. If they succeed in eliminating the deduction of state income taxes, do you know who is going to get stuck like pigs on that?<\/p>\n

People who live in blue states.<\/p>\n

\"\"California. The top income tax rate in California is 13%. That is a lot of money to everybody. I don\u2019t care what income level you are in California, your tax rate is high, and you\u2019re paying a lot. And you\u2019re no longer gonna be able to deduct it. Most of the people in California are Democrats. This is going to starve state governments of a lot of money — a lot of money — when people cannot deduct their state income taxes. These blue states are gonna have to get a little austere or something, because they\u2019re going to be financially hit by this.<\/p>\n

There are some red states that have significantly high income tax rates, but mostly they\u2019re blue: Illinois, California, New York. And if this holds up, they\u2019re gonna be paying through the nose. Then there was talk that property taxes would also not be deductible, but that supposedly is not true, as it stands now. You will be able to deduct your property taxes from your income tax. The standard deduction exemption has been doubled from 12 grand to 24 grand.<\/p>\n

The Alternative Minimum Tax has been gotten rid of. That is so huge. And that is the reason and the corporate tax rate reduction… Those are the two things that have Schumer and Pelosi and the Democrats running around calling this the usual Republican “tax cut for the rich,” when it isn\u2019t! The rich are not going to have their taxes cut. Their tax rate, I was told, is probably not gonna change. It\u2019s gonna be up to what happens in the committees. And then I was told the reason why is that President Trump did this.<\/p>\n

When they finished telling me all the details, I studiously noted that they hadn\u2019t described anything about the top marginal rate to me. They didn\u2019t say anything about it. So I courageously and bravely said, “Well, what about the 39.6% rate?” The reaction (stammering), “That — that — that\u2019s the president! The president wants that. That\u2019s not us, that… The president… The president said guys like him don\u2019t deserve a tax cut. You go talk to him!” I mean, they laid that off on Trump. It didn\u2019t take two seconds. “You go talk to Trump!<\/p>\n

“The president, he\u2019s insisted that the rich not get a reduction in their rate. Guys like him don\u2019t need a tax cut.” Well, I turned around and said, “Now, you\u2019re telling me that the reason for this is to grow the economy. That\u2019s what the president says.” “That\u2019s right. We want to create jobs, and we want to grow the economy.” I said, “Well, this isn\u2019t gonna do it. You can\u2019t have a tax-rate reduction that does not reduce the rates on high-income earners and have economic growth. Not like you\u2019re thinking.”<\/p>\n

“Why not?”<\/p>\n

\"\"<\/a>“Well, because those are the people who hire. Those are the people, by definition, who have money, and they\u2019ve succeeded, and if you\u2019re not gonna change their tax rate — and you\u2019re gonna monkey around with their deductions so they don\u2019t have any — you are leaving out of your growth engine the people that already pay 70% of all taxes.” The top 10% of wage earners in America pay 70% of all income tax revenue.<\/p>\n

The top 1% pay about 39%, folks. This talk that the rich get a tax cut and the rich aren\u2019t pay their fair share? It\u2019s demonstrably false, and everybody on cable TV telling you that the rich are getting a huge tax cut here is not right. They are lying to you or they are misinformed. Now, the Alternative Minimum Tax being eliminated? That\u2019s a big deal, but not just for the rich; that\u2019s for everybody. That was catching a lot of people that were never intended to be caught. The corporate rate will go from 35% down to 20%.<\/p>\n

And of course, the Democrats are gonna really launch on that \u2019cause they hate corporations anyway. Corporations aren\u2019t people, and the corporate rate going 35% to 20% making it competitive with other nations\u2019 tax rates on business around the world is a sensible thing to do. But here come the Democrats demagoguing it, “Well, it\u2019s a tax break for the rich. It\u2019s a…” It\u2019s not. There are people that work for corporations who benefit from the corporation showing more profit, which means they hire more people.<\/p>\n

It\u2019s just absurd to continue, after all these years, to listen to the usual lies and demagoguery from these people, which does not change. Now, there\u2019s another key element of this. And for lack of a better term I\u2019m gonna call it the subchapter S pass-through. There are a number of… Oh, yes, the estate tax is ending, and that\u2019s another way the rich are gonna get really, really richer. The Democrats think when you die that the government ought to get over half of your estate.<\/p>\n

This tax plan thinks that the inheritors should not have to give up half of what was earned to the government. So the estate tax has been blown away. Schumer and Pelosi and the media are gonna be harping on that as a tax break for the rich. The subchapter S pass-through… The way this works, this plan would cap the tax rate on businesses whose income is reported on individual returns. You know, if you own a small business, you can file your business return, your subchapter S on your personal tax form.<\/p>\n

You have a sole proprietorship or a sub-S, and the income of your business passes through to your personal tax form, your personal life. The new rate on that\u2019s gonna be 25%. That\u2019s good too: 25% pass-through rate on income earned by subchapter S and sole proprietors. Now, the LA Times doesn\u2019t like this<\/a>. The problem with this provision is that in jurisdictions where it\u2019s already been enacted like Kansas under “the Tea Party governor Sam Brownback,” everybody from freelancers and petty contractors to huge partnerships are able to redefine ordinary income as business income to avoid paying state income tax at all.<\/p>\n

\"\"I\u2019ll explain that. This is nothing new! Anybody that is a small business, their accountant advises them, “File a sub-S! Do your business as a sub-S.” All these rules are there. They have been set there by 535 members of Congress over the years. No loopholes here. This is the law. Anyway, on balance this thing has a lot of good stuff in it. But it isn\u2019t a conservative tax plan. It\u2019s not a pro-growth tax plan.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: There is another aspect of this tax plan that\u2019s also very good. You know the American corporations that have billions and billions of dollars parked overseas because of the high corporate tax rate here? Apple, Inc. is one of the greatest examples. They\u2019ve got a cash pile of around $265 billion, and almost (I think) 70% of it is held overseas. They don\u2019t report it as income here, they don\u2019t want to pay 35% on it. But their effective rate actually is about 26 to 24% every quarter. But they, for the most part, keep it parked in parts of the world where it has been earned at much more favorable tax rates. The repatriation rate is gonna be a one-time rate of like 5.25%. Companies are gonna be hard-pressed not to take advantage of this. Everybody\u2019s been asking for it. Let\u2019s see if they meant it.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: There\u2019s a statistic that is thrown around about taxes, and I find when I use it that a lot of people nod, and they don\u2019t say anything. I can tell they don\u2019t believe it. But half of the American people do not pay any income taxes. And it has been this way for quite a while. It started in the 1980s and it intensified in the 1990s. It\u2019s all part of the Democrat Party\u2019s class warfare and class envy business.<\/p>\n

And yet while we now reach a point where 50% of American taxpayers don\u2019t pay any income tax — now, they pay other taxes. They pay, if they\u2019re working, payroll taxes, of course. And they\u2019ll pay property tax if the own property, and they will pay phone tax, gasoline tax, that stuff. But income tax, half of American taxpayers don\u2019t pay any income tax. This tax cut, therefore, cannot be for the middle class, as it\u2019s being touted.<\/p>\n

The brackets that we are talking about here are targeting people who only pay two and a half percent of the total tax bite. They are not going to get significant tax relief because there isn\u2019t much yet for them to have. What\u2019s gonna happen here is what always does. The middle class and the upper middle class, at the end of the tax year, are gonna be paying more dollars, some way. They\u2019re gonna be told that their rates have been reduced, but they\u2019re going to be paying more dollars. The property tax deduction being eliminated is one way.<\/p>\n

\"\"Look, there\u2019s some good things in this plan, too, but it is not a tax cut for the rich and it is not what they mean when they tell you trickle-down. They can\u2019t stop using that term. They used it to attach it to the Reagan tax cuts in the 1980s. And what they mean by trickle-down is that you give the rich a big pile of money and they\u2019re gonna share it and they\u2019re gonna give it away to people. And that\u2019s not what happens and so then they say trickle-down fails.<\/p>\n

Trickle-down happens every day in your life. Trickle-down is the United States economy. Apple building a brand-new headquarters building that cost \u2019em $5 billion, guess who gets the $5 billion? The people that built it: the architects, the construction companies, the contractors, landscapers, everybody. Everybody involved. That\u2019s trickle-down. Apple has a pile of money they dedicate to a new building. They have to get it built. Everybody that had a role in it getting built gets paid. That\u2019s trickle-down. It\u2019s good!<\/p>\n

Trickle-down is exactly what happens when commerce is taking place. And it is how wealth is created. Trickle-down as a term was devised as a way of besmirching and impugning the Art Laffer, Reagan tax cuts of the eighties. And trickle-down was defined as, “We\u2019re gonna give the rich a big tax cut and somehow the middle class is gonna end up with more money, and then the economy\u2019s gonna grow.”<\/p>\n

\"\"And then of course when it doesn\u2019t happen that way, when the rich do not become more charitable or stand on the corner and give money away, then they proclaim trickle-down a failure. But Reagan tax cuts created the longest peacetime boom of economic activity in the modern era. You even have some history revisionism going on now. No, no, no, no, they say, it wasn\u2019t the Reagan tax cuts, it was the Clinton tax increases in the nineties that did it. And that is not really true.<\/p>\n

The bottom line is that half of American taxpayers are not paying any income tax at all. And this tax cut, while being touted as relief for the middle class, \u2019cause that\u2019s what politicians do, that\u2019s where most voters are, is in the middle class. So you tell \u2019em two things. You tell \u2019em, “Finally we are extending middle class tax relief to the people who are the backbone of America, to the people who are responsible for America being a great nation. We are going to lessen their burden.” Well, it\u2019s not much of a burden now on 50% of them.<\/p>\n

So of the middle class that will receive a tax cut, it accounts for two and a half percent of taxpayers. Everybody else, one way or the other, is going to see their taxes not change or go up. And let me ask you something, folks. There\u2019s another thing that we do here that not we do, they do. Whenever you hear this phrase, I want you to automatically realize that you\u2019re listening to Democrat Party language.<\/p>\n

I heard it yesterday when it was explained to me by ranking Republicans. When I said, “Why are you not reducing the tax rates at the upper bracket of 39 and a half?” He said, “Well, we have to pay for all of these other tax cuts.” And I didn\u2019t say anything \u2019cause it would have been pointless to, but I remembered it and I made a note. “We have to pay for it.” That offends me like you can\u2019t believe.<\/p>\n

What is behind the belief, when somebody in government says, “We\u2019re going to give you a tax break, but we have to pay for it somehow,” means we\u2019ve gotta get the money back because what it means is government cannot ever do with a dime less. And so if these people, in their static analysis, conclude that these tax plans are going to, quote, unquote, cost the government — just making up a number here — a hundred million dollars, then they\u2019re gonna find a way to get a hundred million dollars from somebody else in user fees or taxes or whatever so that the government breaks even or ends up with more.<\/p>\n

Let me ask you a question. Is the national debt going down? Is the annual federal budget going down? On balance, is the annual budget deficit going down? The answer to these questions is all “no.” It doesn\u2019t matter if you have Republicans or Democrats pitching their economic plans or tax plans, the government always grows. You end up paying more no matter what.<\/p>\n

The government always grows. The government will never, ever do with less. And, of course, the government isn\u2019t doing with less. And it\u2019s not your fault. You\u2019re not running things. You don\u2019t set policy. There are 535 people who do that. Those numbers change — well, the number doesn\u2019t change; the people that compromise those numbers changes. People win elections, lose elections, they get appointed to a cabinet post or leave a cabinet post. But there are 535 people who determine all of this, and they all pretty much talk the same way. And none of it ever ends up really happening the way they say.<\/p>\n

\"\"There isn\u2019t going to be an overall reduction in the amount of money government collects from taxes with this plan or anything else. So if you know that to be true, if the government is not going to collect any less, then somebody tell me where the tax cuts are. Well, they are there. Certain groups are gonna benefit some other way. Other groups are gonna pay more.<\/p>\n

The way it was explained to me is the safest way Washington has found: Just soak the rich, blame the rich and say, “We\u2019re gonna pay for tax relief for the very crucial and important middle class by not cutting the taxes of the rich.” Okay, so we\u2019re gonna demonize achievers. We\u2019re gonna demonize the successful. We are going to pit the successful against the middle class, lower middle class, or what have you.<\/p>\n

So we\u2019re gonna divide the country on the basis of this. We\u2019re gonna create class warfare and class envy, and we\u2019re gonna try to make people resent the rich, which is not new. That\u2019s been going on since the beginning of time. People do that on their own anyway without being egged on. But we live in a time where everybody on the left is preaching unity and getting along, and this doesn\u2019t do that. This continues to capitalize on division, capitalize on resentment.<\/p>\n

There are a lot of people in the middle class that are not gonna get any tax relief, but they\u2019re gonna told, that\u2019s okay, it\u2019s okay, but the rich are gonna get soaked here, the rich are gonna be paying more than their fair share, and that evens at all out. It doesn\u2019t help anybody else, except that they\u2019ve been conditioned to feel good when the government pushes or soaks someone else. Individually, when you go through the ingredients of the tax plan, there are individually a lot of good things here. You won\u2019t find them mentioned in the media. The media will not find one good thing about this.<\/p>\n

\"\"The repatriation tax rate — getting foreign money back on American shores — is good. The reduction in the pass-through rate (the subchapter S) to 25% is good. The capital gains staying where it is is good. The Alternative Minimum Tax being abolished is good. But then they remove the deductibility of state and local taxes, and that\u2019s gonna hit a lot of people, more than you think. People love deductions. Deductions are how people think they\u2019re screwing the government. They\u2019re a psychological thing.<\/p>\n

It\u2019s like people who love getting a big refund every April. They think they\u2019ve really, really stuck it to the government. They tricked the government. “Look how much the government\u2019s giving me!” They\u2019re not tricking anybody. When you get a big refund, it just means that you let the government keep your money for a whole year at no interest in exchange for giving it back to you in a big lump sum that you don\u2019t usually see in your day-to-day life. So it appears to be a win-win. But I keep coming back to the idea that they\u2019re touting this as fueling the engine of growth.<\/p>\n

But you can\u2019t — that isn\u2019t gonna happen — if you leave the top earners\u2019 rate the same. Reagan cut taxes over a period of eight years from a top marginal rate of 70 to 28%, and you know the drill. The amount of taxes collected doubled from $500 billion to almost a $1 trillion in eight years by reducing tax rates from 70% to 28%. Eisenhower, Kennedy cut them from 90% to 70%. Kennedy cut taxes in the sixties too. And that caused an economic revival. So it is known how to do this. The Democrat Party hates this. They don\u2019t like you keeping more of your money.<\/p>\n

They want you to think you are, but you\u2019re not. Look at how Big Government is and look how often it grows. And look by how much. You\u2019re not keeping more of your money. And you know it. You look at your disposable income, you look at the net — you know, what gets deposited in your account every pay period — and you know you\u2019re not paying any less in taxes. There hasn\u2019t been a significant tax cut since George W. Bush in the early 2000s. Anyway, that\u2019s an overview of this.<\/p>\n

Oh, and the Republicans are, just to reiterate… When you talk to \u2019em about the top rate and why isn\u2019t gonna be reduced, they say, “Well, that\u2019s the president. That\u2019s the president. You gotta talk to the president. Trump is insisting that the rich not get a break \u2019cause he doesn\u2019t think the rich need one. People like him don\u2019t need any more money.” That\u2019s the way Democrats talk. It\u2019s not their job to determine who “needs” what. If we go down that path and allow government to start determining who “needs” what, then they\u2019re gonna start determining everybody\u2019s income, and they\u2019re gonna start determining everybody\u2019s need for health care and need for food and need for drugs and need for whatever.<\/p>\n

It\u2019s none of their business what anybody “needs,” and it\u2019s not for them to decide.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Here\u2019s Jeff in Minneapolis. I\u2019m glad that you called, sir. Great to have you here with us.<\/p>\n

CALLER: Hello, Rush. You mentioned earlier about the 50% not paying any federal income tax.<\/p>\n

RUSH: Right. No federal income tax. Half of American taxpayers pay no federal income tax, correct?<\/p>\n

\"\"CALLER: Correct, and now I am one of those people. My wife and I made a choice — one of us stays home with the kids — and so we made roughly right around $50,000, and we have never had anything taken out of our federal withholding. Every paycheck that comes: $0. Every state — you know, the department of revenue for the state — $0 comes out of us for every paycheck. We get a refund every year. I don\u2019t know how it\u2019s called a “refund.” But it\u2019s called a refund of right around $7,000. I don\u2019t think people realize how… This is real. I am not a… I don\u2019t agree with it. I\u2019m probably the only conservative that thinks, “Eh, he probably doesn\u2019t pay his right amount of taxes.”<\/p>\n

RUSH: So you\u2019re a one-income family and you have a gross income of 50 and they are not deducting any federal taxes from you?<\/p>\n

CALLER: Zero.<\/p>\n

RUSH: And they\u2019re not deducting state taxes?<\/p>\n

CALLER: Zero.<\/p>\n

RUSH: On what basis you getting a refund? You getting earned income tax credit or something?<\/p>\n

CALLER: Yes. I have a lot of children. Choices that we make.<\/p>\n

RUSH: How many children do you have?<\/p>\n

CALLER: Uh, I now have eight.<\/p>\n

RUSH: Well, that took about 40 minutes.<\/p>\n

CALLER: (chuckling)<\/p>\n

RUSH: Forty minutes and a couple cigarettes if you smoke.<\/p>\n

\"\"CALLER: Couple bottles of wine.<\/p>\n

RUSH: (laughing) Well, there you go. All right so —<\/p>\n

CALLER: But it\u2019s a real thing. I\u2019ve always had an issue with this. Now I\u2019ve had people say, my liberal friends, “Well, give the money back. You know, just give it back.” Well, I don\u2019t. I use that for expenses.<\/p>\n

RUSH: Do you know specifically if that seven grand is related to something called the earned income tax credit?<\/p>\n

CALLER: The earned income credit, yes.<\/p>\n

RUSH: Now, that —<\/p>\n

CALLER: I couldn\u2019t tell you exactly what is.<\/p>\n

RUSH: I can\u2019t find anything on that in this plan yet, and I was not told anything about that yesterday during the explainer phone call. But if the earned income tax credit is not eliminated, then… (chuckles) See how this works? You might say, “Well, Rush, if lowering taxes produces all this revenue, why is everybody so much against it?” Well, that\u2019s not hard to answer. The reason particularly Democrats are not crazy about more revenue paying, is Democrats are totally into class warfare and fairness.<\/p>\n

Sander Levin — congressman from Michigan — had it explained to him on TV twenty years ago. “These rates are creating much more revenue to the Treasury.” He said, “I don\u2019t care about that! It\u2019s an unfair rate! The rich ought to be paying more than 28%. It\u2019s an unfair rate.” “But look at the revenue it\u2019s creating.” “I don\u2019t care about the revenue! It\u2019s an unfair rate!” Besides which, the more independent people are — particularly financially — the less they tend to need Democrats, and Democrats don\u2019t like financially independent poor and middle-class people.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: The earned income tax credit stays in the tax plan. The New York Times, by the way, is very upset about this. They\u2019re upset that Trump is not going to increase the earned income tax credit. But it does remain. That\u2019s how illegal immigrants get tax refunds, essentially.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: On balance this thing has a lot of good stuff in it. But it isn't a conservative tax plan. It's not a pro-growth tax plan.<\/p>\n","protected":false},"author":49,"featured_media":248749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[12,1],"tags":[],"yoast_head":"\nWhat I Was Told About the Trump Tax Plan - And What I Think About It - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/admin.rushlimbaugh.com\/daily\/2017\/09\/28\/what-i-was-told-about-the-trump-tax-plan\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"What I Was Told About the Trump Tax Plan - And What I Think About It - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: On balance this thing has a lot of good stuff in it. But it isn't a conservative tax plan. 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