Many Americans and the Beatles would have loved the Trump tax reform.
President Trump’s federal tax reform, called the One, Big, Beautiful Bill Act (officially called the Working Families Tax Cut), made permanent the temporary tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA).
It lowered individual income tax brackets, boosted standard deduction, and provides a $2,200 Child Tax Credit.
What a difference a president can make. Why President Joe Biden’s campaign promise to reverse the President Donald Trump’s tax reform of 2017, protests over taxes were relevant. He wanted $5.1 trillion in new spending and higher taxes on Americans and business for 2025. (Biden Budget Tax Proposals: Details & Analysis.)
While the federal tax burden has been reduced, sky-high regional and local taxes are prompting Americans to flee the Blue states for the Red states.
So, lest politicians forget, we should continue to remember tax protests are just as relevant today as they were in Britain five decades ago.
Furthermore, have you ever wondered why British groups like The Rolling Stones, The Who and The Beatles spent so much time touring abroad? To sell music for sure, but there’s another reason.
Furthermore, have you ever wondered why British groups like The Rolling Stones, The Who and The Beatles spent so much time touring abroad?
The reason is best explained in a 1960s’ protest song written by George Harrison. The tune was the opening track of The Beatles’ LP album, “Revolver.” It was Billboard Magazine’s No. 1 album starting in Aug. 1966 for six weeks.
Entitled, “Taxman,” the song ridiculed progressives — in particular, British Prime Minister Harold Wilson — for passing outrageous English tax laws. (Not to be gauche, but indeed the British star passed away at his adopted home of Beverly Hills, CA in 2001.)
England has always imposed high taxes but in 1966 the Beatles were viciously abused – led by the liberal Labour Party, the government super-taxed away 95 percent of their earnings. Yes, all but five percent.
“…though we had started earning money, we were actually giving most of it away in taxes,” complained the musician.
Hence, his song:
Fellow Beatle Paul McCartney further explained the reason for the Taxman in a 1984 interview with Playboy.
“George wrote that and I played guitar on it,” said Mr. McCartney. “He wrote it in anger at finding out what the taxman did. He had never known before then what he’ll do with your money.”
So, while the Beatles would ostensibly be happy with President Trump’s tax reform, reasons for the tax-protest song still exist.
Political distractions on taxes
You might recall not one Democrat voted for tax reform.
Afterward, as countless companies passed their tax savings and resulting profits to employees, you might recall then-House Minority Leader Nancy Pelosi (D-CA) infamously called the reform-inspired $1,000 to $2,000 employee bonuses “crumbs.”
Crumbs? Seriously?
She and her fellow Democrats vowed to raise taxes if they ever regain control of Congress. Ironically, federal data shows the average wage has increased about 3 percent. But you might recall inflation had jumped 18 percent under the Biden Administration.
The white Americans’ unemployment rate remains under 4 percent, but the Black unemployment rate jumped to 6.4 percent.
Prior to the pandemic, tax reform led to more more jobs. Now there are 6.87 million unfilled jobs. It represents a job openings rate of 4.1 percent. In President Trump’s first term in 2019, the unemployment rate was only 3.7 percent –the lowest in 50 years. It was historically low for women, blacks and Hispanics.
Meantime, who knows? Surely, Mr. Harrison would have loved the Trump tax reform.
From the Coach’s Corner, related public-policy articles:
What Bill Gates Says about Donald Trump Will Surprise You — Mr. Gates astutely observes Mr. Trump was not elected “for specific policies” but for his “kind of leadership.” The tech icon also believes Mr. Trump has a message reminiscent of President John F. Kennedy.
Academic Study: Rich Pay More than Their Share in Taxes — The 2016 study by the National Center for Policy Analysis reveals the current tax code is highly progressive. It’s entitled, “U.S. Inequality, Fiscal Progressivity, and Work Disincentives: An Intragenerational Accounting.”
5 Shocking Lessons from Donald Trump’s Taxes — In analyzing the mess from the mud-slinging over Donald Trump’s taxes, we can reasonably arrive at five conclusions.
“If you’re overweight, I’ll tax your fat.”
-George Harrison
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