I’m sure this will come as news to Nancy Pelosi, although Democrats make noise about wanting to help the middle class. They’re certainly not going to vote for any tax cut proposed by Trump.
What they might do is go through the motions of offering to support a middle-class tax cut in exchange for repealing the corporate tax cut of 2017, and restoring the old rate of 35 percent. That’s the worst thing Trump could possibly do, so he won’t, and they know that.
Thus, there will be no middle-class tax cut, and Democrats can blame Trump for wanting to protect corporations and the rich more than the middle class.
Politics is ridiculous.
But you knew that. Where, though, did this come from?
President Trump told Republican lawmakers Thursday that “sometime this year,” he will announce a “substantial tax cut for middle-income folks who work so hard.”
“We are working on a tax cut for the middle-income people that is going to be very, very inspirational,” the president told House Republicans at their annual retreat in Baltimore. “It’s going to be something that — I think it’s what everyone’s really looking for.”
It’s not as if rates on the middle class weren’t cut in the 2017 tax cut. They absolutely were. There’s room to cut marginal rates further, of course, but Trump has to realize he’s going to get a fight from the House majority.
He would also have a hard time in the Senate, where you can’t pass a tax cut using reconciliation (meaning you can’t do it with a mere 51 votes) unless the Keynesian gnomes at the Congressional Budget Office somehow decide the tax cut won’t balloon the deficit. They will not decide that.
This sounds like a political move, designed to get the middle class excited about something Trump wants to do for them, only to see the Democrats spoil the party and thus have to go on the defensive just as campaign season is getting underway. In other words, if the middle class is going to decide the election, Trump wants the middle class grateful to him and mad at the Democrats.
The problem, I think, is that I’m not sure a tax cut is what most individuals are pining for the most. They want higher income. They would surely like to pay less in taxes as well, but they probably don’t think it through all that thoroughly to recognize that easing the tax burden on the private sector as a whole (regardless of which “class” you reduce the burden on directly) creates a more positive environment for all the things you want to happen.
Then again, maybe there’s something Trump has in mind to do administratively – perhaps some sort of indexing for inflation that results in a de facto tax cut. Then again, he expressed no willingness to do that on capital gains, so why would he do it on other taxes?
Unless he thinks the middle class is a juicier election year target than investors. I seriously wonder if he will follow this up with any serious policy proposal. I’d like him to.
Author: Dan Calabrese
Source: Western Journal: Trump: A major middle-class tax cut is coming this year