Changing the tax code creates winners and losers. And remember, for Republicans, the poor and the middle class are always to be the losers. The Wealthy need their tax cut, and Goshdarnit, someone has to pay for it. So, this time, Republicans are going to eliminate the deductions for mortgage interest and state and local taxes, giving every middle class family faces a massive tax increase. At the same time, they are actually raising taxes on the bottom bracket (i.e. the poor and lower middle class) from 10% to 12%.
Josh Barro explains why a middle-class tax payer is an almost certain loser under the Republican proposal:
Some of these deductions would be eliminated. And while Republicans like to misleadingly claim their plan would “double the standard deduction,” these itemizing taxpayers would lose the ability to take the personal exemption for themselves or their spouses, subjecting an additional $8,100 of their income to tax.
While these taxpayers would lose key tax benefits, rich taxpayers would come out ahead.
The rich would benefit from a new preferential rate for business income — while high-income workers could pay tax at rates as high as 35%, business owners would have tax on their profits capped at 25%.
When George W. Bush and his Republicans in Congress passed their tax cut proposal in 2001, they made sure to just make it an across the board cut so that they would not be pasted with the charge of raising taxes on the poor and middle class to pay for a tax cut for the rich. Sure, the wealthy got the biggest tax cut, but no one saw their taxes rise in real terms. So even though it was unfair and unwise, it wasn’t a monstrous theft from the middle class and the poor.
People say that passing this Middle Class Tax Increase (and I will be calling it that from now on and so should you and all Democrats, liberals and progressives) is going to be no easier than passing their Repeal and Go Fuck Yourself plan. Why? Because they, the Republicans, are trying to take something away from you. And people get upset when that happens. They wanted your healthcare, and now they just want your money.