Yesterday, Congressional Republicans unveiled their new tax plan, the first major tax reform since the 1980s. And in response, Congressional Democrats hauled out the same greatest hits they’ve been replaying since at least the 1980s.
We had Nancy Pelosi wailing the moldy oldie “Tax Cuts For The Rich,” and Chuck Schumer and the Nose Glasses with their big smash, “Crushing Burden On The Middle Class.” Like any act that’s been on the road too long, they can mouth the words in their sleep, and to be honest, that’s what a couple of them appeared to be doing.
One problem: the bill doesn’t raise taxes on the middle class or give big “giveaways” to the rich (I always love the Democratic mindset that anytime taxpayers get to keep a little more of their own money, it’s a “gift” from the government.) It reduces the number of tax brackets from seven to four. A married couple making $24,000 to $90,000 will pay a rate of just 12%, with rates rising with income to 25%, 35% and finally, 39.6% for a married couple making over $1 million.
Will everyone pay less? No, all tax forms are wildly different, and payments will vary depending on where you live and which deductions you take. For instance, a new $10,000 ceiling on property tax deductions and a $500,000 limit on mortgage deductions may hurt wealthy and upper middle class taxpayers in blue states like New York and California, which have high state taxes and home prices. That’s one reason why Democrats might want to knock off the kneejerk opposition and work with Republicans to get some concessions in exchange for support, if posturing for the cameras isn’t more important than protecting their constituents.
But on average, it’s estimated that a middle class family of four will save $1182 a year in taxes. The claim that the plan raises taxes on the middle class is so blatantly false that even the Washington Post fact-checker gave it his highest baloney rating of Four Pinocchios.
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