Economy Taxes

Shocker: House GOP Tax Plan is Complete Crap


It’s not as if I was going out on a long limb to predict that the House GOP tax plan would be dog shit, but I told you so.

Just as predicted, their new plan pays for a huge tax cut by reducing or removing deductions used by working families and, rather than close loopholes, it shields them.

Camp seeks to scrap the deduction for state and local tax payments, a provision most heavily used in Democratic states like New York and California.

His plan also lowers the cap on the mortgage interest deduction from $1 million to $500,000, reduces rates for the Earned Income Tax Credit (EITC) and taxes certain contributions to 401(k) plans. [...]

The Ways and Means chairman rolls back an accelerated cost recovery system, stretches out depreciation schedules and installs a system that would shield most corporate offshore income from U.S. taxation.

This is why Mitch McConnell preempted today’s reveal last night and why Speaker John Boehner is literally laughing at it.

Their “plan” will lower the top tax bracket from 39 percent to 25 percent by screwing the little people.

This isn’t a bug, it’s a feature. Working as intended.

  • IrishGrrrl

    Hmmmm, I was trying to reply to Broca Rug’s comment but it disappeared. In any case, here is what I said about those few good ideas that are supposedly in the Ryan plan.

    A few decent ideas doesn’t redeem this sh*tpile in my eyes. Besides even if the Dems produced a plan with these ideas and their own proposals added on, the R’s would just flat out reject it. Heck, they’d probably remove the ideas that were in common from their own plan. They don’t really want to work together so I can’t get excited about anything they produce because I know they don’t mean it. They don’t want to really talk about the issues and they don’t want to share governance with the Dems. So what is in Ryan’s plan, almost doesn’t matter.

    • Broca’s Area Rug

      Ha, TOTALLY agree it doesn’t redeem it. Don’t get me wrong, wouldn’t vote for this if I was on fire and only an “aye” would put me out. But I do find the rush by the GOP establishment to sh*t all over the first plan drafted by a Republican that makes *any* concession whatsoever to tax “reform” not being limited to cuts really interesting, and a hopeful sign for growing division in the GOP ranks between those who have realized a need for real, effective policy and those who want to just use “principles” as cover to loot the economy in favor of the super-rich. Nothing to get excited about, like you say, but worth discussing, and maybe worth providing some small amount of political capital to those factions of the GOP that may prove rational (if still disagreeable).

      • IrishGrrrl

        Very well put, no worries

  • Christopher Foxx

    This tax reform proposal is an important step in launching a debate on how to revive the American economy after years of mismanagement. Chairman Camp framed the fight perfectly,” Michael Needham of Heritage Action said in a statement.

    I’d agree with him on the years of mismanagement, but I know he’s not talking about 2000-2008.

  • Broca’s Area Rug

    Literally never thought I’d say this, but: to be fair, there are provisions not mentioned above in the proposal that kinda seem to make this the most legit attempt at actual tax reform dared by a recent Republican. I mean, isn’t it more likely that McDonnell crushed it because the neolib/conservative finance blogs are already hand-wringing today about how just incredibly evil the 3.5% financial institution tax on banks over $50 bill in assets Camp suggests is, and how it “sets a dangerous precedent” and whatnot? And while it cuts the “top bracket,” it does so more semantically than really with its “totally separate and not a bracket at all somehow” additional tax on super rich households. Now, that doesn’t make the other off-shore provisions or the exact deductions he’s attacking at all a good thing, or make the whole plan worthwhile; it’s still not even sort of nearly anything I would come up with or vote for, FOR SURE.
    But for the first time since I was old enough to read and understand them, this House Republican plan makes at least a couple shocking concessions to existing inequality problems, instead of just trying to freaking eliminate taxes or only tax poor people more. I mean, when your party’s gold standard of tax “reform” is Grover goddam Norquist, that’s actually a pretty bold accomplishment. So not applauding it, really, but maybe we want to give them a little positive reinforcement for the slight/scattered moves back toward reason Camp did make? Having a not-totally-batshit-fantasy starting point for at least some budget negotiations would be *pretty* amazing…

  • Ipecac

    As we all know by now, if they could get away with it, they would absolutely pass a tax “reform” saying the anyone making over $500,000 a year pays $0 and everyone under pays 50% of their income. And they’d simultaneously kill all entitlements.

    They’re pathological that way.

    • JMAshby

      If they controlled both houses and the white house, I have no doubt they would have implemented the Ryan budget and the economy would crash again.

      • reginahny

        Of course, because Ryan is their “math-y” guy. As VICE mag said: Paul Ryan is what stupid people think a smart guy sounds like.

      • trgahan

        I don’t know so much as the economy, as a whole, would crash but I can guarantee at least three events would happen:

        A) the vacuuming sound we have heard since 1980 that is the extraction of wealth from our national citizenry toward the top 5% would become deafeningly loud;

        B) an impenetrable glass ceiling about three yards thick will descend over the heads of 95% of Americans preventing social economic mobility and will press down further as the vacuum does its job;

        C) that working class relative who’s uncritically defended while being directly kicked around by the “Job Creators” will continue to blame brown people, single mothers, and ACORN for all of this…