President Trump and his Republicans have delivered a Merry Christmas tax package in spades. And it works.
For example: The Walton family of Walmart is reported to be worth $130 billion. The Republican’s Christmas gift tax bill includes the removal of the inheritance tax. A good thing, because it was 40 percent, and this change now saves the Walton offspring about $52 billion.
According to people in the know, the tax bill overall will add at least $1 trillion to the national debt. Yes, that “t” is for trillion. This $52 billion Christmas gift to the Walton family will represent 5 percent of that national debt increase. Imagine that. Five percent of the increase in the national debt due to one American family.
In a thankful holiday mood, the Walton offspring will undoubtedly invest this $52 billion in America; that is, buy treasury bonds.
So let’s assume the interest rate for treasuries, rising a little with the debt, garners them 4 percent (that is 4 percent of $52 billion) as the interest paid to them each year by the government, and that amounts to $2 billion and change. Yes, in appreciation for their investment in America, the government will pay the Waltons over $2,000,000,000 every year.
So where does the government get that kind of money to make these payments? The answer is taxes. Who’s paying those taxes? Not the Waltons; treasury interest is tax free.
Merry Christmas, Mr. and Mrs. Taxpayer!
Leo Cohen
Durango
