Top Trump Economic Advisor’s Defense of Tax Plan Turns into a Train Wreck (Video)

Now that Republicans have (once again) failed to repeal Obamacare as they spent years promising they would do the moment they controlled Congress and the White House, they’re shifting their focus to the scam they’ve been conning their supporters into believing for decades: cutting taxes for the rich will make your life better.

For nearly forty years now, Republicans have perpetuated the idea that what’s best for the poor and middle class is to give millionaires and billionaires more money.

Sadly, all that’s happened since the dawn of trickle-down economics is that the rich have gotten richer, income inequality reached levels not seen since prior to the Great Depression, and our national debt has skyrocketed to $20 trillion.

Nevertheless, despite nearly four decades worth of overwhelming evidence proving that cutting taxes for the wealthy doesn’t create jobs or help the middle class, Republicans continue to beat that same drum.

Only this time, the tax plan supported by Donald Trump would be one of the largest handouts to the rich (if not the largest) in this nation’s history.

As CNBC pointed out, the repeal of the estate tax, alone, would save Trump $564 million. Some have even suggested that Trump’s tax plan would net him around $1 billion in savings.

Nothing like a corrupt, unethical pathological lying con artist proposing a tax plan that would cut his own taxes by $1 billion.

Oh, but it’s okay, because the middle class will see their taxes cut, too.

That’s where Trump’s top economic advisor’s defense of his tax plan turned into a train wreck.

Gary Cohn said that “a typical family earning $100,000 with two children that has been a standard deductor… can expect a tax cut of about $1,000.”

“If we allow a family to keep another thousand dollars of their income, what does that mean? They can renovate their kitchen, they can buy a new car, they can take their family on vacation, they can increase their lifestyle,” he said. “That’s what our tax plan has to do.”

Talk about being completely out-of-touch.

By the way, Cohn also said that he couldn’t guarantee that under Trump’s plan, taxes for some middle class Americans wouldn’t actually go up.

For starters, the median family income in the United States is around $55,000 — not $100,000. Meanwhile, the average American family only brings in around $74,000 per year. Both totals coming in well below the $100,000 Cohn seems to think most American families bring in.

That means the “$1,000 tax savings” Cohn used to try to sell this massive handout for the rich would be far less for the average middle class American.

Though the fact he seems to think that $1,000 a year (which is really less for most Americans) would somehow allow Americans to “renovate their kitchen, buy a new car, or take their family on vacation” is completely absurd.

You can’t even buy a decent, moderately priced kitchen refrigerator for $1,000 — let alone renovate an entire kitchen. Meanwhile, $1,000 won’t even give you enough for a decent down payment on a new car, and unless you’re taking the family on a vacation within your own city, $1,000 isn’t going to get you very far there, either.

But let’s just take this $1,000 (even though most Americans would get far less than that) annual savings Cohn used here and break that down a little bit. A tax savings of $1,000 per year comes out to $83 per month, or around $2.74 per day.

Again, most Americans would see much less than that.

How is that going to “increase” someone’s lifestyle? Especially when you factor in the reality that decreased federal dollars will ultimately lead to tax increases elsewhere or cuts to vital programs most Americans use.

All the while, the richest among us will keep getting richer, while income inequality becomes more and more of a problem.

The fact that we have people in key economic positions who think $2.74 per day (which is really less since most Americans don’t make $100,000 per year) will somehow help families renovate a kitchen, buy a car, take their family on vacation, or improve their lifestyle is an absolute joke.

It’s statements like these that prove how completely out-of-touch Donald Trump and most of the people working in his administration are about the struggles of every day Americans.

Watch his statement below via CNBC:

White House advisor Gary Cohn: Family earning about $100,000 can expect a tax cut of $1000 from CNBC.

Allen Clifton

Allen Clifton is a native Texan who now lives in the Austin area. He has a degree in Political Science from Sam Houston State University. Allen is a co-founder of Forward Progressives and creator of the popular Right Off A Cliff column and Facebook page. Be sure to follow Allen on Twitter and Facebook, and subscribe to his channel on YouTube as well.


Facebook comments

  • Linda Lewis

    Mr. Gary Cohn, yes, with the $1K tax cut you can buy a new car….IF 60 of you do it and share it equally the 6 times a year you get to drive it. Can you say. “Out of touch”? I know you can but you would need a totally new view of reality to understand. You do know most down payments, even on used card are more than $1K and payments total the better part of $700/month for6 years. Of course you don’t know all that because your account pays your bills and you ask no questions. Mr Cohn, you are a fool to think people are swallowing what you are feeding them. There is nothing new or different with Trump in office. The Republicans still lie and take everything they can out of the hard working public’s pocket. We are not fools and will not go quietly but wish the Trump administration would.

    • MarcoZandrini

      All Reptilicans are out of touch with reality.

  • Eg Kbbs

    This is an economic advisor ?

    So will he show me how to contract to remodel my kitchen for $ 1,000 and still have money to spare ?

    And quite telling that his “average” income figure is about double the “average” income.

    Even worse that this guy doesn’t know the most basic statistics in economics., that he uses “average” / mean income as being typical or at the middle. The mean is extremely sensitive to even a small number of extremes. (think of a group of 9 people making $ 50 k a year and 1 person earning 1 million. the “average” mean is $ 145 k per year. Of course the typical earning would be either what the person in the middle makes – $ 50 k per year).

    This is freshman level economics I’m talking.

  • Kenneth H Cohen

    Perhaps the most convincing argument made against the Trump tax cut comes from Bruce Bartlett, one of the original chief architects of Reagan’s trickle down economics: