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Posts Tagged ‘DINO’

What strange times we live in. The Trump Administration has floated the idea of a 7-cent gas tax increase to pay for public works. But the Democrats are opposing any gas tax increase. They want to fund infrastructure spending through a one-time cut in the corporate repatriation tax:

“The bottom line is that we don’t want to raise taxes on working people right now,” Schumer said. “As it stands now that is where we are at. Income distribution is so bad, I would rather pay for infrastructure by taking the money that comes from overseas [repatriation] and putting it into infrastructure.”

Repatriation refers to profits large corporations earn overseas. Companies such as Apple and Google have accumulated hundreds of billions in foreign profits, but don’t have to pay tax on those profits until the money is repatriated to the US. Schumer’s proposal is to provide a one-time reduction in the tax rate to “encourage” these companies to pay up more quickly the money owed the US Treasury.

To describe Schumer’s plan as good for working people is incredibly misleading. Any decrease in corporate tax receipts has to be made up by regular taxpayers (i.e. the working class). And Schumer’s plan isn’t sustainable because it is a one-time deal, which means the gas tax will inevitably be raised. So working class taxpayers will end up paying for both a gas tax hike and a corporate tax cut.

 

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