Letter: The facts about taxes and tax cuts
In 2015, corporate income taxes provided $341.7 billion in federal revenue. Had the tax rate been 21 percent, as it will be starting in 2018, instead of 35 percent, all other things being equal, it would have only been $205.02 billion, a loss of $137 billion. The last time the top corporate tax rate was as low as 21 percent was 1939. It was 40 percent or higher from 1943 through 1987 and from 1988 through 2017 it was either 34 or 35 percent.
Even before the tax cut bill, the U.S.'s individual tax rates were already low compared to the rest of the industrial world. Drastically lowering the corporate tax rate, while further lowering individual rates and giving major breaks to "pass through" businesses puts total U.S. income taxation far below the averages for developed countries.
And we have to fund a much larger military budget than other countries. In short: We clearly won't have enough revenue for social programs of any kind. This new reality means that everything from Social Security to Medicare to food stamps to aid for the disabled is in danger.
Please remember this over the coming year. Republicans from Donald Trump to the Koch brothers to major U.S. corporations will be running massive propaganda campaigns to convince you by Election Day in 2018 that the recent tax cut bill is a boon to you, your family, and your country. It is the opposite of that.
TALK TO US
If you'd like to leave a comment (or a tip or a question) about this story with the editors, please email us. We also welcome letters to the editor for publication; you can do that by filling out our letters form and submitting it to the newsroom.