Democrats in Congress are creating a plan to sabotage President-elect Donald Trump’s overhaul of the current U.S. tax system.
Although Trump has promised tax cuts across the board, particularly for the middle class, Democrats are trying to portray the plan as beneficial to the wealthy.
They vow to hone in on the effects it will have for the upper 1% of the tax bracket in order to paint Trump as supporting the wealthy and breaking his promises of helping the middle class.
Democrat leaders also plan to “zero in on upper-income tax breaks pitched by Trump and House leaders in an attempt to make it politically difficult for Republicans to support large parts of the emerging plans” — an effort to undermine Trump as he takes office.
Trump has sought to portray his plan as a pro-growth simplification of the tax code that would benefit the middle class. In a “Contract with the American Voter” published before the election, his campaign said of his proposal: “The largest tax reductions are for the middle class.”
Their [Democrats’] initial comments suggest that the 115th Congress, which convenes Jan. 3 with a Republican-led agenda of instituting a broad tax overhaul and repealing ObamaCare, will be peppered with debate over income inequality.
Trump, himself a wealthy businessman, has an understanding of what needs to be done to overhaul the massive U.S. tax code, and has laid out detailed plans to cut regulations and simplify the code for all Americans.
What the Democrats fail to note is that much of the benefit for the middle class will be paid for by eliminating deductions and loopholes that currently benefit the wealthy.
Instead, they are focusing on the fact the wealthy will get a tax cut along with the rest of Americans — but not that the plan, when reviewed in its entirety, will create a balanced code to benefit the whole of the country.
From Trump’s proposed tax plan:
The Trump tax cuts are fully paid for by: Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. The Trump plan also phases out the tax exemption on life insurance interest for high-income earners, ends the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and are not risking their own capital, and reduces or eliminates other loopholes for the very rich and special interests. These reductions and eliminations will not harm the economy or hurt the middle class.
It appears that fighting the President-elect’s proposed new policies in all areas is a scheme by the Democrats to make for a difficult transition — and their attempts to convert weak Republicans to vote against the plan is par for the course.
Asked to respond to Democrats’ initial criticisms, a spokeswoman for the lawmaker who will lead the Republicans’ tax-overhaul fight signaled that the party will cast its plans as being good for everyone.
“We are working on a tax code built for growth that will improve the lives of all Americans,” said Emily Schillinger, a spokeswoman for Representative Kevin Brady, the Texas Republican who chairs the Ways and Means committee. Republicans have three main goals for tax policy, she said: speed economic growth, simplify the rules and laws, and redesign the IRS “to focus on customer service.”
Republicans today are more united, at least in principle, when it comes to reducing taxes.
Still reeling from Hillary’s defeat and the fact that Republicans kept their majorities in both houses of Congress, it appears the Democrats are struggling to find any way to portray Donald Trump in a negative light.
They are banking on the fact that everyday Americans have little understanding of our current tax code, or that proposed by the President-elect.
The Democrats are hoping to spark outrage that the wealthy will be given a tax cut at all — without portraying to the American people the big picture: Tax relief for middle class Americans, simplifying the entire tax code, growing the economy to benefit all — and doing it without adding to the deficit.