DYSPEPSIA GENERATION

We have seen the future, and it sucks.

Democrats: How Can I Help My Wealthy Constituents Keep Their Tax Breaks?

4th January 2018

Read it.

The recently passed Tax Cuts and Jobs Act caps the federal deduction for state and local taxes (the SALT deduction) at $10,000. That’s bad news for people who pay a significant amount in such taxes and relied on the SALT deduction to reduce their federal-tax liability. In other words, it’s bad news for rich people who live in blue states. As Jared Walczak, a senior policy analyst at the Tax Foundation, has shown, more than 88 percent of the SALT deduction’s benefit flows to those who earn more than $100,000 in income, and the deduction itself is a boon to states with bigger governments.

The charitable observer might expect Democratic politicians to find solace in this provision of the TCJA. After all, it removes a major tax break for the rich. According to Ben Casselman’s report in the New York Times, however, state Democrats are mulling ways to rewrite their state-tax codes so that those wealthy residents can avoid paying more in taxes.

Democrats don’t really hate the rich — that’s just a political charade intended to fool the weak-minded (many of whom vote Democrat — who knew?).

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