Had Democrats negotiated with Republicans, they might have saved the provision they most wanted to preserve—the full deductibility of state and local taxes. It’s a crucial break in rich, high-tax states like New York, New Jersey, and California.Imagine that.
President Reagan tried to kill deductibility in the tax reform legislation of 1986. But that was a bipartisan effort, and Democrats insisted on keeping it. Now they’re on the outside looking in.
Were they willing to compromise, they could have agreed to a deeper cut in the corporate rate than the original drafters of the Trump bill ever expected—and might have saved full deductibility. The Wall Street Journal suggested another deal. Democrats could have offered to eliminate the business tax entirely in exchange for a carbon tax. Republicans might have taken that deal.
In the end, the corporate rate wound up at 21 percent, down from 35 percent. And writing off state and local taxes was capped at $10,000, a change likely to be especially costly to wealthy Democratic donors in high-tax states. Indeed, it was rich donors whose interests Democrats especially sought to protect. They’d have been outraged if Republicans did the same for GOP donors.
Sunday, December 24, 2017
Feeble Resistance. Look at what the Democrats haven't accomplished.
The Weekly Standard reports: