HIGHTOWER: Newt's Tax-Cut Flim-Flam

Are you ready for your big tax cut? The Republican congress is promising gumdrops for everyone, with Newt Gingrich saying the "Centerpiece" of his proposal is a tax credit for every child in America.Well, not exactly every child. If your family makes less than $30,000 a year -- which is half of us -- you don't get the $500 credit. In Newt's World, your children just aren't as worthy as those privileged to be born in higher income brackets.But this is hardly the only deception in the Republican tax plan. Behind the rhetoric, you'll find that their real giveaway is not to children, but to the elite -- the wealthiest one percent of Americans and the largest corporations.The true centerpiece of the package is a cut in the tax on "capital gains." What is this thing called "capital gains"? It's the profit you make when playing the stockmarket, or when you sell a shopping center, or when you gain from the sale of other assets.What? You don't own stocks, shopping centers or other such high-finance assets? Well, don't feel alone -- two-thirds of us do not own any stocks and bonds, and most of those who do have only tiny holdings that are our nest eggs, not something we buy and sell for specualation. Indeed, 90 percent of all such assets are held by the RICHEST ONE PERCENT of Americans, and they are the ones who will pocket the billions that Newt & Gang are doling-out in this giveaway.But wait!, Newt says, these people deserve the break because they will invest their windfall in new factories, construction and other projects that create jobs for the peons. That's a convenient theory, but in practice, these high-rollers dump their money into quick-buck currency transactions, foreign ventures and other high-return investments that don't build a thing for America.Don't be fooled by Newt's tax-cut flim-flam . . . it's just another hustle for the Fat Cats.Source:"G.O.P. Lawmaker unveils proposal for a big tax cut" by Richard W. Stevenson. The New York Times: June 10, 1997.

#story_page_post_article

Understand the importance of honest news ?

So do we.

The past year has been the most arduous of our lives. The Covid-19 pandemic continues to be catastrophic not only to our health - mental and physical - but also to the stability of millions of people. For all of us independent news organizations, it’s no exception.

We’ve covered everything thrown at us this past year and will continue to do so with your support. We’ve always understood the importance of calling out corruption, regardless of political affiliation.

We need your support in this difficult time. Every reader contribution, no matter the amount, makes a difference in allowing our newsroom to bring you the stories that matter, at a time when being informed is more important than ever. Invest with us.

Make a one-time contribution to Alternet All Access, or click here to become a subscriber. Thank you.

Click to donate by check.

DonateDonate by credit card
Donate by Paypal
{{ post.roar_specific_data.api_data.analytics }}

Don't Sit on the Sidelines of History. Join Alternet All Access and Go Ad-Free. Support Honest Journalism.