So why are democrats so opposed to Trumps new tax reform? The real reason isn’t because it’s a “tax break for the rich” as they all say, it’s because democratic law makers have a system in place right now, one they call the “sacred cow”, that protects their own pockets and don’t want the status quo to change.
One provision of the Republican’s tax-cutting plan that has drawn intense opposition from Democrats is the elimination of state and local tax deductions for those who itemize.
Rep. Nancy Pelosi said it was “an insidious effort to raise taxes on middle class families … across America.” Sen. Ron Wyden said that “hardworking middle-class folks are not going to appreciate Congress double taxing them.” New York Gov. Andrew Cuomo called it “a pure tax increase.”
What exactly are democrats trying so hard to protect?
It’s called a SALT deduction, and it will cost the federal government $1.8 trillion over the next decade, according to the Tax Foundation.
And the benefits go almost entirely to upper-income families.
Fewer than 22% of tax filers even claim the state and local tax deduction, and the vast majority of these are higher-income families. While 78% of those with incomes above $200,000 claim the deduction, just 7% of those making between $30,000 and $40,000 do. For most taxpayers, the standard deduction is more valuable.
The Joint Committee on Taxation calculates that for those earning more than $200,000, the SALT deduction cuts their federal tax bill by an average $6,295. For those with incomes of between $100,000 and $200,000, it’s just $857. Those earning from $30,000 to $40,000 get an average of $93 off their federal tax bill.
These numbers are absurd and impossible to defend. How can the democrats have any bone to pick with Trumps new tax plan, which has been proven to help working class families, when they stand behind this plan, which is doing nothing for the working class man.