President Trump and Congressional Republicans are now on the verge of passing a disastrous tax plan into law that will raise taxes for millions of low-and middle-income workers and threaten critical programs that make our economy fairer and stronger — all to give a tax break to large corporations and the wealthiest Americans.
It’s a complicated bill, and there’s plenty to criticize about it. However, it would have been nice if a sitting US Senator didn’t resort to bald-faced lies.
30% (only) of taxpayers itemize on their tax returns. If you are a member of the other 70% (those are the millions of low and middle income workers you speak of) there would have to be some pretty weird shit on your tax return for you NOT to get a substantial tax decrease. The low end should get a cut of about 16%; the middle group 23%; after about $60K of AGI, that drops back down to 16%; and if you’re lucky enough to be in the upper income group, making 250K AGI, your tax cut will only be in the neighborhood of 4%.
Further, there’s no “critical programs” being threatened. Social Security, Medicare, and Medicaid are paid for by the payroll tax, not the income tax; and even the architects of the ACA have stated bluntly that the individual mandate was ineffective in getting people to sign up.
Obamacare mandate repeal may not deliver predicted blow
Repealing Obamacare's individual mandate might not be the devastating blow to health insurance markets that supporters…
As far as the “tax breaks” are concerned……well, I have to say it’s amusing to watch the “party of the little guy”, the Democrats, arguing vehemently for keeping the two huge tax breaks that are *only* used by the upper 30% of wage earners who itemize.
A more balanced discussion of the matter is here:
The Facts on the SALT Deduction - FactCheck.org
Republican plans to eliminate or modify federal tax deductions for state and local taxes have sparked criticism from…
And, regarding corporate taxation, as recently as a few months ago, Democrats were arguing that there was bipartisan consensus on lowering corporate tax rates to world standards; and there was general consensus on lowering those rates.
Here’s the bottom line: With (what must be) an inefficient state government that has high income tax rates, high sales tax rates, and high property tax rates, and a disproportionate number of wealthy people (four of the wealthiest counties in the US are in New Jersey), New Jerseians (if that’s a word) will take the brunt of the pain of this long-overdue restructuring of the tax code.
Which should lead, one would think, for New Jersians to start to question the state taxes they pay, if they’re getting good value for their money. I suspect they are not.