At a time when the deficit is out of control, wages are flat and the wealthiest are doing better than ever, to give the top 1 percent another advantage is an outrage and shows the Republicans’ true colors.”
“Furthermore,” Schumer continued, “Mr. Mnuchin thinks he can do it on his own, but everyone knows this must be done by legislation.”
An independent analysis of the benefits of the Trump administration suggested change, showed more than 97 percent of the benefits go to the top 10 percent of incomes. Almost 66 percent goes to the top 0.1 percent of incomes.
Those figures explain why the 1.5 trillion dollar GOP tax cut signed last year steered clear of capital gains. There is no way to spin the numbers to the middle class as a benefit to them.
Trump’s administration is not the first to consider sidestepping Congress to benefit the wealthiest citizens. In 1992, President George H. W. Bush examined the possibility.
They ultimately rejected the idea, deciding the change exceeded the powers granted to the Treasury Department and the executive branch. But some conservatives say Trump should do it anyway.
Even knowing the change will fail judicial review, investors like the Trump and Kushner families will still be able to sell off assets and avoid paying the proper level of taxes right up until the new regulation is overturned by the courts.
According to Ryan Ellis, a tax lobbyist,
No matter what the courts do, you’ll get the main economic benefit the day, the month after Treasury does this.”
While Ryan’s statement is accurate, knowingly creating a regulation that violates the Constitution for personal gain raises several ethical issues. Alexandra Thornton, senior director of tax policy at the Center for American Progress, remarked,
It would just be a very generous addition to the tax cuts they’ve already handed to the very wealthy and it would play into the hands of their tax advisers, who would be well positioned to take advantage of the loopholes that were opened by it.”
But Texas Republican Representative Kevin Brady, chairman of the Ways and Means Committee, thinks bypassing Congress is a case of the ends justifying the means.
I think we ought to look at not penalizing Americans for inflation.”
President Bush’s administration determined in 1992 that the action was illegal. The Justice Department’s Office of Legal Counsel concurred with their conclusion.
Whether the Trump administration reaches the same decision could have a major impact on the economy, the deficit and Republican results at the ballot box on Tuesday, November 6, 2018.
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That's not how this works.