Is It Time to Sell the Fake News on Tax Reform? – Ep. 311

Calling Tax Cuts Reform is Fake News

Earlier today the House of Representatives passed the Tax Cut Bill.  Of course, the Media keeps referring to it as “Tax Reform”.  That’s fake news, for you, calling these tax cuts reform is a perfect example of fake news.  Donald Trump is not going to complain about this fake news.  When the fake news works in his favor, when he prefers the fake news to the real news, he’s going to be quiet about it. It’s only when he doesn’t like the fake news that he calls the media out.

Loopholes will Reduce Taxes from 39.6% to 29.6%

This has nothing to do with reform.  There are definitely tax cuts in this bill.  In fact, there are substantial tax cuts. The tax cuts are a lot deeper than what people are saying, because the real reduction in the top rate is not from 39.6% to 37%, it’s from 39.6% to 29.6%. It’s a much bigger reduction because of the ability of so many people who are now paying 39.6% to use the loopholes to reduce their tax to 29.6%.  Now, of course, the top rates are actually higher than that, because no one talks about the 3.8% Medicare and Obamacare taxes that are not repealed. The mandate, the penalty for not buying insurance is repealed, but the taxes to fund Medicare and Obamacare, they’re still there.  So the marginal rates are higher than the media is talking about. The reductions, however are actually much bigger for the top end.

No One Gets Government Relief

Normally, I’m all in favor of lowering the top end. I would just like to do it in a fair and honest way, not through gimmicks and loopholes. But yes, I want to lower the top rate of tax, but I also want to make government smaller.  I want to reduce government spending so we no longer need all that tax revenue. I have said over and over again, that this bill will provide some people with tax relief, but no people with government relief.

Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast.



Signup to schiff sovereign newsletter