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RI ARA

Affiliated with the Rhode Island AFL-CIO “Fighting for the future of our members.” “NOW, more than ever!!!” Publication 2018 Issue 31 Published in house by the RI ARA

August 5, 2018 E-Newsletter

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Trump Administration Mulls a Unilateral Tax Cut for the Wealthy The Trump administration is considering bypassing Congress to grant a $100 billion tax cut mainly to the wealthy, a legally tenuous maneuver that would cut capital gains taxation and fulfill a long-held ambition of many investors and conservatives. Steven Mnuchin, the Treasury secretary, said in an interview on the sidelines of the Group of 20 summit meeting in Argentina this month that his department was studying whether it could use its regulatory powers to allow Americans to account for inflation in determining capital gains tax liabilities. The Treasury Department could change the definition of “cost” for calculating capital gains, allowing taxpayers to adjust the initial value of an asset, such as

a home or a share of stock, for inflation when it sells. Currently, capital gains taxes are determined by subtracting the original price of an asset from the price at which it was sold and taxing the difference, usually at 20 percent. If a high earner spent $100,000 on stock in 1980, then sold it for $1 million today, she would owe taxes on $900,000. But if her original purchase price was adjusted for inflation, it would be about $300,000, reducing her taxable “gain” to $700,000. That would save the investor $40,000. “It is something that we’re going to consider; we’ve talked to Congress about it,” Mr. Mnuchin said. “There have been a bunch of letters to the president and I on Treasury doing this independent of Congress.” Mr. Mnuchin emphasized that

he had not concluded whether he had the authority to make such a move but that it was being studied internally, along with the economic costs and impact on growth. The move would face a nearcertain court challenge. It could also reinforce a liberal critique of Republican tax policy at a time when Republicans are struggling to sell middle-class voters on the benefits of the tax cuts that President Trump signed into law late last year. “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,” said Senator Chuck Schumer of New York, the Democratic leader. “Furthermore, Mr. Mnuchin thinks he can do it on his own,

but everyone knows this must be done by legislation.” Capital gains taxes are overwhelmingly paid by high earners, and they were untouched in the $1.5 trillion tax law that Mr. Trump signed last year. Independent analyses suggest that more than 97 percent of the benefits of indexing capital gains for inflation would go to the top 10 percent of income earners in America. Nearly two-thirds of the benefits would go to the super wealthy — the top 0.1 percent of American income earners. ...Read More

Enough is enough. The rich get richer and the middle class and poor suffer. Isn’t it bout time congress started to help senior citizens with SS, Medicare, Medicaid, and the homeless, veterans and poor?

Drug Trade Group Quietly Spends ‘Dark Money’ To Sway Policy And Voters In 2010, before the Affordable Care Act was passed by Congress, the pharmaceutical industry’s top lobbying group was a very public supporter of the measure. It even helped fund a multimillion-dollar TV ad campaignbacking passage of the law. But last year, when Republicans mounted an aggressive effort to repeal and replace the law, the group made a point of staying outside the fray. “We’ve not taken a position,” said Stephen Ubl, head of the organization, the Pharmaceutical

year, giving it $6.1 million, federal regulatory filings show. And PhRMA had a substantial interest in the outcome of the repeal efforts. Among other Research and Manufacturers of for its elimination. actions, the GOP-backed health America, known as PhRMA, in “Urge him to repeal and bill would have eliminated a a March 2017 interview. replace the Affordable Care Act federal fee paid by That stance, however, was at now,” one ad running in early pharmaceutical companies, one odds with its financial support 2017 advised viewers to tell estimated at $28 billion over a of another group, the American their congressman. That and decade… Action Network, which was similar material (including But there was no way the heavily involved in that effort to robocalls) paid for by the public could have known at the put an end to the ACA, often American Action Network ran time about PhRMA’s support of referred to as Obamacare, numerous times last year in 75 AAN or the identity of other spending an estimated $10 congressional districts. deep-pocketed financiers behind million on an ad campaign PhRMA was one of AAN’s the group..Read More designed to build voter support biggest donors the previous

Rhode Island Alliance for Retired Americans, Inc. • 94 Cleveland Street • North Providence, RI • 02904-3525 • 401-480-8381 riarajap@hotmail.com • http://www.facebook.com/groups/354516807278/

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August 5, 2018 RI ARA E-Newsletter  

August 5, 2018 RI ARA E-Newsletter  

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