A political drawback of the Republican tax bills is that they raise taxes on a significant number of voters by curbing the deduction for state and local taxes. A lot of these voters are in households that make between $100,000 and $500,000 in taxable income. About 40 million tax returns come from that group, and its members are disproportionately likely to face higher taxes as a result of Republican tax legislation.
Would Republicans make these households happier if they cut taxes more for households richer than they are?
No Wonder Millennials Hate Capitalism
The anti-Communist Victims of Communism Memorial Foundation was alarmed to find in a recent survey that 44 percent of millennials would prefer to live in a socialist country, compared with 42 percent who want to live under capitalism.
.. But given the increasingly oligarchic nature of our economy, it’s not surprising that for many young people, capitalism looks like the god that failed.
.. the rich people who would benefit from the measures passed by the House and the Senate tend to be older (and whiter) than the population at large.
Younger people would foot the bill, either through higher taxes, diminished public services or both. They stand to inherit an even more stratified society than the one they were born into.
.. there’s also an ideology at work, one that sees the rich as more productive and deserving than others... consider what Senator Chuck Grassley, Republican of Iowa, told The Des Moines Register about the need to repeal the estate tax, which falls only on heirs of multimillionaires and billionaires. “I think not having the estate tax recognizes the people that are investing, as opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies,” he said... Senator Orrin Hatch .. He went on to rant against the poor: “I have a rough time wanting to spend billions and billions and trillions of dollars to help people who won’t help themselves — won’t lift a finger — and expect the federal government to do everything.” It was unclear whether he was talking about the nearly nine million children covered through CHIP or their parents... You don’t have to want to abolish capitalism to understand why the prospect is tempting to a generation that’s being robbed.
Republicans Feel Triumph, Fear Tragedy
Tax plan, Mueller’s Russia probe help produce two potential divergent paths
.. The Republican establishment’s bargain with Mr. Trump always has been essentially this: It is worth putting up with his excesses and an undercurrent of mutual mistrust because ultimately he would promote and then sign the Republicans’ long-sought tax cut.
.. Republican plans to make Democratic House leader Nancy Pelosi rather than Mr. Trump the unpopular face of the election year succeed... Trump voters decide the party and the president they supported in 2016 don’t share their common-sense aversion to running up big bills and leaving them for the kids... Meantime, a failure to agree on a new spending bill forces a government shutdown just before Christmas, and the GOP fails to put the blame off on Democrats. That instantly sullies Republicans’ newfound reputation for governing effectively... Corporate leaders don’t make the kinds of job-creating investments Republicans predict. Meanwhile, the tax cut’s stimulative effect overheats an economy already near full employment, pumps up an overextended stock market and compels the Fed to keep raising interest rates. The bubble bursts.The Obamacare infrastructure also collapses in 2018, and Republicans now are the party bearing the blame for health-market chaos.
.. Trump world financial entanglements with Russians gave the Kremlin leverage over the eventual president, and it’s shown Mr. Trump obstructed justice to stop investigators from finding out.
‘I don’t think it’s going to help’: In a pro-Trump area, many voters are skeptical of GOP tax plan
“The separation between the middle class and the upper class, it’s growing, and I don’t think it’s a coincidence. . . . It’s easier to control people when they’re under your thumb.”
.. if the middle class really stood to benefit from this tax plan, Republicans wouldn’t have worked behind closed doors and rushed to pass it.
.. As Johnson has watched interviews with Republican lawmakers, he said, he has noticed that they can’t answer this simple question: “Is this going to help the middle class?”
“I don’t even get upset anymore, because they’re not going to listen,” said Johnson, who traveled to Sterling Heights on Wednesday to do some Christmas shopping at Lakeside Mall. “They don’t care. There’s nothing else to say. They just don’t care.”