In the wake of the ObamaCare repeal effort, voters are looking for results.
Eager for a signature legislative win, congressional Republicans appear primed to move tax reform to the front burner and health care to the back burner. Fundamental to tax reform is the GOP promise to lower taxes.
Matthew Gardner, a senior fellow at ITEP, says that backpedalling on SALT shows that Republicans are not willing to answer the "thorny questions" of how to fund tax reform. But those numbers aren't distributed evenly. As Orange County taxpayers, we should be afraid of both risks. As of the time of this writing, the answer is yes.
Nearly immediately, disagreements emerged over how much to cut certain tax rates, which deductions could be eliminated, and whether the tax reform package would be revenue-neutral.
Republicans, who in the coming months are looking to pass what is shaping up to be a massive tax cut - in addition to increasing defense spending and nondefense spending - are having a hard time finding ways to taper the deficit.
"You're going to start at 0 [percent]". It cuts the top tax bracket, reducing their tax obligation.
Philosophically, it is worth noting that eliminating the SALT deduction makes sense.
Americans also favor doubling the standard deduction.
So, instead they're going to cut these programs, so that they can come back later and tell the American public look how disgusting the government is. If a family of four sees an increase in their overall tax burden because of a Republican Congress, there will be outrage.
Orange County taxpayers also know that this is not only an issue for the "wealthy". The average American who took this deduction was able to exclude $10,134 of income taxes, or $1,832 in sales taxes. A deduction cap also would face political resistance. They should be careful before they applaud too loudly.
President Donald Trump and his Republican partners in a almost $6 trillion tax-cutting plan insist it would benefit middle-class Americans and not the wealthy. However, home-owning middle-class families in California could get hammered. The most high-profile news items-the ones billed as top priority by Republican leadership-are the ones that have most publicly and embarrassingly fallen flat for the party. Consider K-1 "pass-through" income. Pass-through businesses constitute the majority of business income in the U.S.
In 2015, Americans deducted more than $200 billion in other taxes paid. I wouldn't give up any of the places where we have been aggressive in the past.
The final tally was not a slam dunk for the GOP, as 18 Republicans voted against the budget plan, as some more conservative lawmakers anxious that it won't do enough to rein in spending, or bring down the national debt, while a number of moderates expressed displeasure about possible details in the GOP tax bill. This week, they are as likely to have an unfavorable opinion as a favorable one about their own party's legislators in general.
To stop the tax cut plan, "We have to buckle up and organize all over the country", he declared.
Progressive Caucus co-chair Rep. Mark Pocan, D-Wis., a Painters Union member, called the tax plan - and Trump's claim it would not help him personally - "absurd".