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EGACY Yesterday. Today. Tomorrow.
WEDNESDAYS • Nov. 8, 2017
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Richmond & Hampton Roads
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CBC comes out against GOP tax bill STAFF & WIRE
The chairman of the Congressional Black Caucus slammed the Republican tax bill last week, saying the bill benefits the wealthy and the president. While he hasn’t finished reading the entire bill, Louisiana Rep. Cedric Richmond said he was struck by how the bill seemed to benefit the most wealthy in the country and President Donald Trump. “The Congressional Black Caucus is still reviewing the Republican tax bill like everyone else because it was drafted behind closed doors without our input. But from what we’ve seen so far, one thing is crystal clear: This bill was drafted to help the richest of the rich and hurt under-served communities. In fact, this bill likely benefits President Trump directly, which we could confirm if he had released his tax returns as every president in modern history has done,” Richmond noted in a press release. Republicans, aiming for the biggest tax cut in three decades, released their almost 500-page tax plan Thursday. Under the Tax Cuts and Jobs Act, the corporate tax rate would go down to 20 percent from 35 percent. The plan doesn’t enact any changes to 401(k)s, reduces the tax brackets down to four and increases the tax credit for families with children. Some Republicans have come out against the bill, citing concerns about the bill not doing enough to help working families. Richmond said the bill was an insult to black families, who would only save a little money under the bill, while richer corporations
would gain the most. The tax plan, Richmond argued, would only further wealth inequality in America. “Republicans tout their proposal as a victory for middle class families, but it is insulting to offer an AfricanAmerican family a few hundred dollars in tax relief while giving major corporations and Trump’s 1 percent a multi-million dollar windfall. We are facing a crisis of wealth and income disparities in America and Republicans have the audacity to propose a modern day reverse Robin Hood tax system that will only widen the gap between the haves and the have-nots,” Richmond noted in the statement. The plan, the first rewrite of tax laws in a generation, and cut taxes by $1.51 trillion, was denounced as a giveaway to corporations and the wealth that inflates the deficit and harms working Virginia and District residents, according to one politician. The plan, to be formally introduced later, preserves pre-tax contributions of up to $18,000 to 401(k) retirement plans, a key savings vehicle for many middle-income Americans, and also reduces the number of tax brackets, slashes corporate tax rates and sharply reduces a cherished deduction for mortgage interest — something that could greatly affect the tax bills of high-value real estate areas like Virginia, Washington, D.C., and Maryland. A summary of the plan released last week follows months of internal debate, delays and conflict. It is far from a final product, and lobbyists are already lining up in opposition to some of the key provisions, including
President Donald Trump kisses a printed example of what a new tax form may look like during a meeting on tax policy, Nov., in Washington, as House Speaker Paul Ryan of Wis., and chairman of the House Ways and Means Committee Rep. Kevin Brady, R-Texas, watch. limits on the amount of mortgage interest homeowners can deduct and a sharp reduction in the corporate tax rate some conservatives argue could mean more overseas outsourcing of American jobs. One of the things that will hit Virginians and District taxpayers the hardest is a proposed limit on the deduction of local property taxes to $10,000, known as the SALT deduction. The deduction for state income taxes would be eliminated, which generated significant opposition from Republicans in hightax states such as Maryland, New York, New Jersey and Pennsylvania. Another threat to D.C. area homeowners is the plan to limit the
deduction on mortgage interest for purchased homes at up to $500,000, while the current limit is $1 million. The National Association of Realtors is lobbying against that provision, warning in ads that could mean a tax increase for middle-class homeowners. “I support tax reform that grows the economy, helps working people and makes our small businesses more competitive. But the Republican bill focuses on breaks for big businesses and high earners while jacking up the deficit. Its priorities are out of whack,” said Sen. Tim Kaine, a Democrat.
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