As the media slices and dices the proposed tax plan offered by President Trump’s Treasury Secretary Steven Mnuchin on April 26th, one thing is clear – the rich will pay more in taxes than the working class.
In the Daily Signal article How Trump’s Tax Plan Would Affect High-Tax States Like California, New York Fred Lucas writes:
High-income earners in high-tax states would see a federal tax rate cut, but may pay more in the end if they’re unable to deduct state and local taxes under President Donald Trump’s tax reform proposal announced Wednesday.
The White House released the contours of his tax reform proposal that would lower tax rates and reduce the number of tax brackets. However, the plan would also reduce the number of tax deductions.
When a reporter asked if deducting taxes on state and local income taxes would also be eliminated, Treasury Secretary Steven Mnuchin answered, “Yes.”
So, Democrats should be very excited about taxing the rich, so will the 99%ers, like Occupy Wall Street, who have been for taxing the rich. This has been the mantra of the Democrat Party – Tax the Rich!
So which are the states with the highest tax rates? The national average for state income taxes is 9.9%. According to the 2017 Tax Guide published on BankRate.com the 10 highest taxed states are:
New York – Tax burden: 12.7%
Connecticut – Tax burden: 12.6%
New Jersey – Tax burden: 12.2%
Wisconsin – Tax burden: 11%
Illinois – Tax burden: 11%
California – Tax burden: 11%
Maryland – Tax burden: 10.9%
Minnesota – Tax burden: 10.8%
Rhode Island – Tax burden: 10.8%
Oregon – Tax burden: 10.3%
President Trump’s plan does what Democrats have made the goal of their platform. Make the rich pay more. But wait!
Lucas reports, “House Republicans were already reportedly considering eliminating the deduction on state and local taxes, which could disproportionately affect wealthy people in high-tax blue states such as New York and California.” The question is: Why?
The President’s tax plan would put pressure on the ten states listed above to lower their state income tax rates. Isn’t this ultimately good for the successful working class people of New York and California? The 99%ers!
This provision, among the other key policy shifts in the President’s tax plan are bold and make good on his promise to cut taxes, just not on the rich, many of whom have said they are happy to pay more in taxes.
Seems like a win-win to me. How about you.