American’s Taxes Should the Dems Take the Congress This November
Republicans will make the historic Trump tax overhaul that slashed taxes 1 of their Key campaign selling points ahead of November elections.
Democrats on the other hand are talking about how they want to undo it.
In their bid to retake control of Congress, many Democratic candidates are pointing to the $1.5-T tax cut, and what they say are its exclusive benefits for corporations and wealthy individuals, as a roadblock to expanding benefits like Social Security and Medicare.
The will chip away at some of the new tax law’s provisions to fund those social programs, they say.
While Democrats are campaigning against the tax cut, Republicans have been quietly shelving it and focusing more on cultural and social issues such as immigration.
The Democratic leaders are urging candidates to campaign on the issues they think will resonate in their districts, which has led to a wide array of messages.
Note: the House’s agenda will also be shaped by whomever serves as speaker, if Democrats regain control.
Below are some of the tax provisions in the Democrats’ sights, as follows:
Increase Corporate Tax Rate
Democrats are finding success by tying the corporate tax cuts to future reductions in Medicare, Medicaid and Social Security.
Representative John Delaney (D-Maryland), who is running for President in Y 2020, has called for increasing the corporate rate to 23% and to use additional revenue to fund infrastructure.
Increase Capital Gains Rates
The Trump tax law did not change the treatment of capital gains, but the US Treasury Department is looking at whether it has the power to cut tax bills for investors who have investment income. Democrats are already blasting the proposal, and a group of Senate Democrats wrote a letter to Treasury Secretary Steven Mnuchin, urging him not to index the gains to inflation.
Repeal The Carried Interest Break
Eliminating special tax treatment for the profits hedge fund and private equity managers earn, known as carried interest, is also at the top many Democrats’ tax to-do lists.
President Trump had once vowed to end the provision that allows fund managers to pay capital gains rates, instead of higher ordinary tax rates, on much of their earnings. Instead, the tax law just extends the period to 3 years from 1 year, that managers have to hold the assets for before they can qualify for the break.
Revise Small Business Taxes
Modifying the law’s generous tax break for so-called pass-through entities, whose owners report their businesses’ income on their personal tax returns, is a dicey for Democrats.
Undo SALT Limit
The tax law capped the amount of state and local taxes an individual can write off at $10,000. The amount was previously unlimited, and the cap hit residents of high-tax states in New York, New Jersey and California particularly hard.
Repealing or increasing the cap on that deduction is a high priority for Democrats who represent districts in high-tax states, such as Representative Bill Pascrell of New Jersey and John Larson of Connecticut.
But outside the high-tax states, there isn’t much political pressure to change the deduction, which could cost about $100-B a year to restore in full, according to estimates from the Joint Committee on Taxation.
From a conservative standpoint, it would be worthy of a wide grin if the socialists were fighting with the progressives who were fighting with the moderate Democrats, and they splintered and lost everything to the Trump conservatives in the Fall.
Be sure to vote and keep America Great!