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Trump's tax trial balloon -- cutting taxes to the middle class for the 1% and corporation!

The idea that the administration will cut 401k deductions and cut the ability of tax payer to exclude , as income, the taxes they have paid to the states, are almost certainly complete B.S.  This would be tantamount to raising the taxes on the middle class to give to the 1% and to corporation -- this would kill the GOP's 2020 prospect -- dead!

The removal of deduction for state income taxes is clearly a little "Fu#k You" to all the democrats states -- its not the red states that will suffer from that since state taxes tend to be lower -- although the red states are by far the biggest beneficiary of the largess of the Federal government...something to remember!  It would be tantamount to a declaration of war with NY, California, Washington, New Jersey and Connecticut (to name but a few).

Taxing the 401k at the source (rather than when people retire) is impractical, it could become a huge windfall for those who've already retired (yeah I get it -- if you are 70 you are more likely to be for Trump).  It would kill the whole pension industry (Fidelity may have something to say about that).

This all smells of a trial ballon, and a rather desperate one at that since I also mentioned that once you remove entitlement programs, Veteran's affaire and the military -- you are left with only about 12% of government expenditures -- its hard to give a multi-trilllion tax cut on that basis!

There is no doubt that the US government system is broken, the amount received by the Federal government do not match its outlays the Federal government shortfall is about 10/12% of all outlays -- which is a lot (France for example has had a maximum deficit of 6% -- during the worse of the crisis.  Granted the European don't count the IOU from their pension liabilities).

Still the cut to the 401k (which income is eventually taxes by the way) and to the deduction of state taxes are dick moves...


Rather fitting really

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