Sanuk wrote:
Why is this populist guy so hell bent on helping me?
That's what populist Presidents like Trump do and why his followers love him. He promises them riches and they think that he is doing it for them and that he will make them rich too. The Trump lovers actually believe Trump is going to help them get their coal jobs back, reduce their taxes, make healthcare cheaper and MAGA.
No, seriously.
Some discusssion of the CBO report out over the weekend
here.
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"But what the CBO did is different. It didnÂ’t just look at the tax cuts. It looked at the net effect, because, William, this bill is so large that it would likely trigger automatic spending cuts in various programs.
So, the CBO said, OK, letÂ’s look at the combined effect of those two things, how your taxes would change under this bill, plus any benefits you get, any government programs that you get, any loss you would see from spending cuts.
And they found that those two things combined would have a dramatically larger effect on lower classes,
people earning under $40,000, many times the effects we have seen in other analyses so far. They
would be paying a little bit more in taxes, but they would lose a lot more in benefits, as programs like Medicaid, maybe Medicare would be hit by cuts."
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"...the average really doesnÂ’t apply here. You canÂ’t look at the tax cuts that way, because
many millions of Americans fall into very broad groups whose deductions would be taken away.
LetÂ’s start with one big one, the medical expenses deduction. If you have a very large amount of medical expenses, anything more than 10 percent of your income, you can deduct that on your taxes. So, say someone is facing a cancer diagnosis, and they donÂ’t have strong insurance. TheyÂ’re paying $100,000 out of pocket. They can deduct that from their taxes now.
The Senate and House bills would wipe that away."
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"Then another group — we talked about before state and local taxes. Now, this is also a very huge group. Almost a quarter or maybe more than a quarter of Americans take state and local taxes off of their federal taxes. Of course, this affects mostly high-tax states. New Jersey gets brought up a lot, New York, but it’s also states like Maryland, California, Virginia.
A quarter of million American taxpayers would lose that deduction, most or all of it. And so, when you say, on average, the middle class would see a tax cut, well, really, everyone is unique, and you see a lot of unique situations where the taxes might go up."
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"...
those at the highest income level, say, $500,000 and above, would see not only the biggest benefit in dollar terms, William,
but also in terms of percentage of their own income.
And thatÂ’s per person. So, itÂ’s not a broad category. I really dove in on that analysis."