The 2017 Republican tax law took away tax exemption’s for local and state taxes in Blue states…
It also helped the Republican credo of lower taxes for the Rich and Business….
EVERYTHING about Government money for the next year will be worked off the Debt Ceiling vote on Congress…
The Republicans have worked HARD to cement the American Middle Class playing a lion’s share of America’s tax revenue….
In designing their 2017 tax overhaul, Republicans did something clever: They made the corporate-side tax changes (mostly) permanent, and the individual-side ones temporary. This made the upfront cost of the bill look a lot cheaper, with the “expectation that no Congress would stand in the way of extending them later on,” says Tax Policy Center’s Steven M. Rosenthal…
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While the overall value of bill was heavily weighted toward the wealthy, most households did indeed enjoy at least a little cut to their taxes. Only a tiny sliver of households (about 6 percent) saw their tax liabilities rise as a result of the individual-tax-side changes in the law….
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So, if these individual-side tax provisions lapse, a whole lot of Americans’ tax bills will rise — and whoever stands in the way of extending those provisions will inevitably get blamed for “raising taxes.” President Barack Obama learned this the hard way when he was in the White House and negotiating with Republicans over extensions to the Bush-era tax cuts. After all, once voters have received a benefit, it becomes politically dangerous to ever take that benefit away, even if initially the program seemed unpopular. (Just ask Republicans about Obamacare!)
The White House has so far been noncommittal about its approach to the soon-to-expire Trump tax provisions. But Biden might have already boxed himself into keeping most of them in place.
That’s because he has repeatedly pledged — including in the recent State of the Union — that “nobody earning less than $400,000 a year will pay an additional penny in taxes.” If this “no new taxes” promise is supposed to mean no projected increases due to expiring tax breaks, most of the 2017 law gets extended. Which is still expensive! Depending on exact details, extending all of the expiring provisions other than the top tax rate could cost $2.1 trillion over a decade, according to the Committee for a Responsible Federal Budget….
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Democratic lawmakers have shown much less appetite this year for a deficit-reduction package than 2011, the last time there was a standoff over raising the debt limit in Washington.
Then-President Obama proposed in April of 2011 cutting the deficit by $4 trillion over 12 years. He suggested $2 trillion in spending cuts across the budget combined with $1 trillion in tax increases that would lower interest payments on the debt by $1 trillion.
This year, however, Democrats are quick to argue that they addressed the deficit by enacting the Inflation Reduction Act (IRA) last year, which they say will reduce the deficit by $300 billion.
“We Democrats have already walked that walk. In the IRA that was the first major bill that reduced the deficit by $300 billion. In the last year with the Biden administration we reduced the deficit by more than in the Trump years,” Senate Majority Leader Chuck Schumer (D-N.Y.) told reporters Wednesday.
He said “there’s close to unanimity if not unanimity in our caucus that the Trump tax cuts were extremely bad for the country.”
Senate Republican Whip John Thune (S.D.), an author of Trump’s 2017 tax bill, said he doesn’t see much desire among Senate Democrats to revisit those tax cuts ahead of a pivotal presidential election. …
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The Democrats and Biden continue to be getting beat up on the economy….