No the GOP has NOT Doubled the Standard Deduction
In general the MSM has been trying to give the GOP the headlines it wants by talking about how ‘80% of Americans get a tax cut in 2018.’ But what about after 2018?
And the tax cut for those among nonrich who get one will be very meager.
Seems worth noting that working- and middle-class families got bigger tax cuts from the 2009 stimulus (*way* bigger for bottom 40%!) than the GOP tax bill. pic.twitter.com/ryn6NLwcqh
— Alex Rowell (@AlexRowell) December 20, 2017
Meanwhile, John Avarois has a good catch on Twitter regarding the talking point that the GOP has doubled the standard deduction.
This claim is made without factoring in that the GOP bill ALSO eliminates the personal exemption.
4) Under the new GOP tax bill, the personal exemption is eliminated while the standard deduction goes up to $12,000. That means COMBINED they come to $12,000 under the GOP bill vs $10,400 before. That’s only a 15% increase, not the 100% increase the GOP claims.
— John Aravosis (@aravosis) December 20, 2017
And it’s an even worse deal for seniors:
6) And if you itemize your tax returns, you just lost a $4,050 personal exemption deduction thanks to @realDonaldTrump, Paul Ryan and Mitch McConnell. All to lower taxes for corporations by 40%. Merry Christmas!
— John Aravosis (@aravosis) December 20, 2017
So the standard deduction is roughly doubled but you have to subtract out your lost personal exemption-and then it also depends if you itemize. If so subtract that out too.
Then if you live in a blue state like me here in NY, then you are killed by losing the state and local tax deduction. This will lead to a loss in revenue and thereby a need to cut public spending and services.
Then there are the huge losses coming from repeal of the ACA mandate. By 2027 most Americans will see their taxes go up. Even in 2018 nonrich people will see very meager tax savings if at all.
“Multiple GOP operatives tell James Hohmann that they plan to turn these perceptions around by touting the plan as, at its core, a big accomplishment in the direction of middle-class relief. The selling point will be that the vast majority of Americans will see a short-term tax cut.”
“But the reality of the plan may make this a tough sell. Next year, the average tax cuts for the lower quintiles are relatively meager, which means those voters may not be as appreciative — or even aware — of them as Republicans expect. Over time, the benefits for them basically evaporate, even as the plan lavishes enormous windfalls on very wealthy earners, who actually gain an even larger share of those benefits in the out-years — a message Democrats will try to hammer home.”
“There is very meager tax relief for those on the lower rungs of the economic ladder. As noted above the main feature the GOP can sell is doubling the SD but when factoring in the lost personal exemption it’s only a 15% increase.”
In other news, there are two days to avoid a government shutdown:
“There’s still a lot of unfinished business at the end of the year, and while Republicans have the majority in both the House and Senate, Democrats have some leverage to push their policy priorities.”
“The Senate needs to win at least eight Democrats to pass a government spending bill and avert shutdown — and they have a lot of legislative priorities they’d like to use their leverage on, from protections for immigrants in the Deferred Action for Childhood Arrivals program to disaster relief funding and money for the opioid epidemic.”
“With two days to keep the government open, it’s all up in the air.”
“As of noon on Wednesday, Republicans and Democrats still hadn’t reached a consensus on how to keep the government open. They’ve agreed to pass a stopgap funding measure — a continuing resolution — which would fund the government at current levels through to the new year, so lawmakers have more time to negotiate an actual spending bill.”
“But the drama is over which legislative priorities will be attached to the budget resolution — if any.”
One thing that’s clear: don’t believe Mitch McConnell will do anything on DACA:
Here McConnell is saying, in code, that there will never be a DACA deal. This means Dems should not squander their leverage now. https://t.co/D0TvhQ5o8H
— Topher Spiro (@TopherSpiro) December 20, 2017
P.S. I’m Mike Sax, I’m running for Congress in the NY 2nd District and I’m a Hillary Clinton Democrat.
Meeting her recently was one of the biggest honors in my life to stand next to such a fine public servant and trailblazer. She seemed to like our Impeachment Train campaign t shirts too!
Think of the shirt as a one time investment in restoring legitimacy to this country.
And please donate so we can compete with Peter King’s $4 million. I know no lobbyists or millionaires like Peter King. Small donations are the engine of the Mike Sax NY2 campaign. Together we can do it. Because we must.