Unfazed by the booming economy, many Democrats would like to repeal the Trump tax cuts, which they claim benefited fat cats anyway. But it's not the rich who would suffer most if the cuts vanished. It is working class Americans, who all too often bear the brunt of ill-advised policies.
Heritage Foundation analyst Adam Michel has done the math:
Consider: Trashing last year’s Tax Cuts and Jobs Act would leave the average New Yorker $22,500 poorer over the following 10 years. A typical family of four would lose out on $41,300 in take-home pay. That ain’t crumbs.
Anthony Brindisi, the New York state assemblyman who is running for the U.S. Congress, however, says that the tax cuts have harmed his district.
It's a great pitch, but Michel's examination of IRS data told a different story. He estimates that a family of four in Brindisi's district got to keep around $1,500 more of their own money.
Manufacturing in the U.S. is highest it has been in 14 years.
Not only are workers paying less taxes, they are at last earning more (see "Wages and Salaries Make Biggest Jump in a Decade").
There is one part of the tax cut legislation that could in some circumstances raise taxes for some rich people. So Democrats are cool with that, right?
Not a bit. The people who always say they want to tax the rich are actually apoplectic about it. It is the provision that caps the deduction for state and local taxes at $10,000. This only affects the affluent.
But opponents of the tax cuts are not above using this cap to frighten people who will not be affected by it–and to help thei rvery own fat cats. It's hypocrisy on steroids. Michel writes:
Politically motivated attacks, amplified by shoddy reporting, have left most New Yorkers fearing they will wind up paying more because of the cap.
This, too, is simply false. In addition to lowering tax rates, last year’s tax reform increased the amount of income that is exempt from taxation and doubled the child tax credit. As a result, 90 percent of New Yorkers will see a tax cut or no change. By this measure, New York fares better than 26 other states — even with the cap on state and local deductions.
Michel writes that the calls for repeal of the tax cuts aren't idle chatter.
While acknowledging that it is not likely that tax raisers will get enough seats on Tuesday to repeal the cuts, Michel says that big wins would allow them to begin movement towards that goal (which of course is more appealing to them than reining in unsustainable spending).