Politics

Democrats Vow 'Collision Course' For Trump's Tax Plan

| by Lauren Briggs

Democrats might be the minority party in Washington, but they have a plan to try and stop Republicans from bringing partisan change to the U.S. tax code. Their plan? To paint the new code as one that works only for the rich, ignores lower-income Americans, and violates President-elect Donald Trump's vows to fight for the working class.

"[Trump's] populist image and the reality of his policies are on a collision course," said Republican Rep. Keith Ellison of Minnesota, who has been tapped as a prospective next Democratic National Committee chairman, according to Bloomberg Politics. "And they're going to crash."

Ellison and other Congressional Democrats said that they will emphasize the proposed tax breaks for those in higher income brackets and encourage debate in the House and Senate about income inequality.

"There's going to be opposition if these tax cuts are directed to the people at the top again," said Democratic Rep. Richard Neal of Massachusetts Democrat, who helps write taxes on the House's Ways and Means Committee. "We're going to be pretty united."

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House Republicans have released an outline for the tax code overhaul, which would be the first in approximately 30 years, reports the Los Angeles Times. In that plan, the income tax rate for the highest earners would drop from 39.6 percent to 33 percent, while small business owners would never have to pay the IRS more than 25 percent.

The plan is intended to lower overall taxes for most people while bringing back most of that lost money by reducing credits, exemptions and deductions. Both Trump and House Speaker Paul Ryan have proposed a dramatic reduction in corporate taxes and a border adjustment tax to encourage American companies to make their products domestically.

The nonpartisan Tax Policy Center says that this plan would reduce revenue by $3 trillion over the first decade, with the majority of money saved benefiting households in the top income bracket. However, Republicans say that their package will be revenue-neutral.

Democrats said that they are looking forward to working with Republicans on the overhaul.

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"We are working on a tax code built for growth that will improve the lives of all Americans," said a spokeswoman for Republican Rep. Kevin Brady of Texas, who chairs the Ways and Means committee, according to Bloomberg.

Sources: Bloomberg Politics, Los Angeles Times / Photo credit: Michael Vadon/Flickr

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