House Republicans unveiled their tax plan today, and boy do I hate it. And I'm saying this as a conservative Republican who has never voted for a Democrat.
The key components of the plan are as follows:
- Federal tax bracket will be reduced from seven to four: 39.6%, 35%, 25%, 12%
- Corporate tax reduced to 20%
- Child tax credits raised from $1,000 to $1,600
- 401K is preserved
- Write off up to $10K in state and local property taxes
- Mortgage interest deduction cut in half
- Repeal of the alternative minimum tax
- Double the estate tax exemption and repeal it altogether in six year
This is a shitty plan. First, I'm a strong believer in a high estate tax, as inherited wealth should be treated very differently from earned wealth. Second, there is very little here for working and middle class Americans. That is important because they are the primary spenders, and we need a boost on the aggregate demand side. And politically, they are the voters who make the difference in elections. This plan only reinforces the conventional view that the GOP only cares about the wealthy. Of course, Trump is not intelligent enough to understand the nuances of the plan, so he will sign whatever the Republicans put on his desk.
Damm, I wish the brilliant Ted Cruz were President.