Taxes

Republicans Add More Tax Cuts for the Rich

JM Ashby
Written by JM Ashby

It was reported yesterday evening that congressional Republicans negotiating changes to their tax cut bill in conference had reached an agreement to restore state and local income tax deductions, but it appears that may not be the case, at least not directly.

According to the Washington Post, Republicans intend to cut top marginal rates to make up for the loss of state and local tax deductions.

Senior Republican negotiators were close to reaching a deal Tuesday to reduce the tax rate for high-income households from 39.6 percent to 37 percent, blowing past political concerns about aiding the rich in order to ease passage of a $1.5 trillion tax package.

The move, which would still need to gain the support of enough Republican lawmakers in both the House and Senate, follows complaints from wealthy taxpayers in New York and elsewhere that their taxes could go up under the legislation because of other changes it makes to the code

This will obviously place even more downward pressure on the middle class because a significant number of people who will lose their state and local deductions do not pay the top marginal rate of 39 percent. Giving rich families making more than $1 million per year another tax cut isn't going to make it better.

It's possible the conflicting reports on top marginal rates and restoring SALT deductions are not actually conflicting at all and they intend to do both, but that doesn't seem mathematically possible if they want to stay under the $1.5 trillion deficit threshold.

  • I think we should all download some Bob Ross videos for our spare time. I know I’LL need him.

  • muselet

    I find it darkly humorous that Heath Robinson and Rube Goldberg working together after draining a bottle of absinthe couldn’t come up with a more irrational way of writing and passing legislation than the Rs.

    Don’t get me wrong, the result of the Rs tax deform (not a typo) efforts will be devastating to the economy and will hurt millions of people, I just have to find some humor in the situation so I don’t start screaming and throwing things.

    –alopecia

    • I want to give you a million upvotes for that simile.

      • muselet

        Aw, shucks, yer makin’ me blush.

        –alopecia

  • Aynwrong

    The Democratic party should respond to every piece of legislation proposed by the GOP as though it’s the repeal and replace of Obamacare. They should campaign against every so called moderate Republican like it’s a special election in their home state. Make passing any piece of Republican legislation a scandal.

    The Resistance is working. Don’t let up.

  • Dread_Pirate_Mathius

    Losing SALT is going to kill me.

    But what do they care? I’m a liberal New Yorker below the donor-class.

    At this point, I’m just surprised they aren’t explicitly levying taxes against registered Democrats.

    • muselet

      If they thought they could get away with it …

      –alopecia