This morning on Fox News Sunday Chuck Schumer stated the following:
- The vast majority of Trump’s tax reform proposal benefits the wealthy and special interests, citing the repeal of the Estate Tax
- The Mortgage Interest deduction will go away for middle class taxpayers
- The “pass through” business tax rate reduction prioritizes owners of hedge funds, private equity, and law firms at the expense of their employees
Chaz is in a box, and he knows it. The Estate Tax is a tiny part of the package, costing Treasury $200 billion over ten years. Simplification and doubling the Standard Deduction cost $3 trillion; and with the top rate dropping from 39% to 35%, by mathematical definition the “rich” will see next to nada on the surface. On top of the $3 trillion, the repeal of the State & Local Tax and other deductions will cost upwards of $4.5 trillion…the vast majority of which fall on the “rich”, since Middle Class taxpayers will be covered by the doubling of the Standard Deduction.
The most blatant lie was number two: The proposal literally states that Mortgage Interest will be protected. And in my opinion, it would not be surprising to ultimately see the MI Deduction capped.
Again, Chaz has no clue. He doesn’t care about the Middle Class, so he is going to hammer on the fact that the “ultra rich” will see their business income taxed at a lower rate. The vast majority of “pass through” entities are businesses employing Middle Class Americans. The math is simple: Dropping the rate from 39% to 15% will allow small and medium business owners to reinvest more $$$ back into their businesses. Will some folks – GASP – become a bit wealthier because of it? Yes. So should we instead raise the minimum wage and taxes on the “rich” in order to “protect” Middle Class workers who will see their jobs go away and wages stagnate? 🤔
This is pathetic politician posturing on one of the most bipartisan tax reform proposals one could design. And why is it bipartisan? Because it was crafted by DEMOCRATS that want to create the most business- and thus employment-friendly environment on earth.