Tuesday, December 19, 2017

It's a Weird Day When the New York Times Explains That the Tax Cut Bill is Bad for the Very Rich

12/18/17 New York Times:
If you read the headlines, the spoils of the Republican tax plan will disproportionately benefit the wealthy. It’s been called a “tax cut for the rich,” “a Christmas gift for the wealthy” and more. And that’s true: Any back-of-the-envelope math shows that in both dollar terms and in percentage terms, the largest tax cuts clearly benefit the rich.
And yet virtually every private conversation taking place on Wall Street and in corporate America among the wealthy these days seemingly comes to a different conclusion. Many complain bitterly that the new tax code will have them paying more, not less, in taxes. Accountants’ phones are ringing off the hook from their wealthy clients scrambling to understand how much bigger their bill will be and what steps can be taken to minimize their ballooning payment.
And here is what has the Democrats really upset.  12/19/17 CBS News:
Eliminates penalty under the Affordable Care Act for failing to have health insurance 
Largely paid by middle class and below Americans who recognize that a $5000 deductible health insurance policy makes no sense.
  • Allows filers to write off the cost of state and local taxes, but only up to $10,000. Filers must choose from among sales, income and property taxes for the deduction, instead of being able to deduct all local taxes.
If you are a typical Democrat in the Blue States, you have huge state income taxes and property taxes.  Your incentive to keep voting Democrat to fund transgender education in kindergarten is less attractive.
  • Preserves the mortgage interest deduction for all homeowners with existing mortgages, and for homeowners with new mortgages, the home mortgage interest deduction will be available up to $750,000.
So if you are a typical big Democrat funder you can't deduct the interest on your $20 million home.  You think I exaggerate.  Someone I used to work for was a poor immigrant to America and funded Clinton's campaign.  The directions to a fundraiser at his home said, "Turn left at the gate and drive 3.1 miles to the house."  That's in Sonoma County.

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