Accounting past due

November 16, 2017

Every time we think we have vanquished Republican efforts to destroy the Affordable Care Act, it returns zombie-like, to threaten us anew.  The Republicans are counting on the tawdry Roy Moore saga and the new Al Franken scandal to distract us from their repugnant policy agenda and are rushing their abhorrent, redistributive tax plan through.  The constant battle to block legislation designed to reduce most of us to lives of penury and squalor is by turns enervating and enraging. Although that may seem like shrill hyperbole, consider the likely impact of the key provisions of the Republican bills currently under consideration:

Elimination of the State and Local Tax Deduction (“SALT”).  If the tax bill passes in its current form, it will eliminate (or at a minimum sharply curtail) this critical deduction that has been in place since the passage of federal income tax legislation in 1913.  The SALT deduction prevents double taxation of income, ensures that states and localities have sufficient revenue to fund essential services, and is a key component of housing values.  30% of all American taxpayers claim the deduction, including 39% of those earning between $50,000 and $75,000 per year and 75% of those earning $75,000 to $100,000 per year (Source: The Impact of Eliminating the State and Local Tax Deduction, prepared by The Government Finance Officers Association, www.gfoa.org).

In addition, the current tax bill could trigger a $25 billion dollar cut to Medicare, because the $1.5 trillion tax cut will have to be offset by a cut in spending under the 2010 PAYGO Act.  The Congressional Budget Office forecasts that the passage of this tax cut will trigger sequestration, resulting in across the board cuts to myriad federal programs, including Medicare (Source: “Republicans’ tax bill could trigger a $25 billion cut to Medicare,” by Tara Golshan, Vox, 11/14/17).

Last, but hardly least, the House tax bill passed today would sharply restrict access to higher education.  It contains a provision that treats tuition benefits afforded to college and university employees as a taxable benefit AND a provision that eliminates the tax deduction for student loan interest (Source:  “House G.O.P. Tax Writers Take Aim at College Tuition Benefits,” by Erica L. Green, The New York Times, 11/15/17).

We should be outraged.  This tax bill is organized plunder of poor, middle, and even upper middle class Americans to line the pockets of a minute class of oligarchs.  The soulless hacks in Congress believe that their deliberate obfuscation will prevent a mob of angry Americans armed with torches and pitchforks from descending on the Capitol.  Alternatively, they hope that the constant barrage of news of powerful men abusing their power will leave us burned out in disgusted outrage.  The reality is that these are two sides of the same coin.  Both the assault of underage girls and a legislative agenda designed to increase poverty and suffering are the obscene antics of men who fear no consequences. It is long past time to call them to account.