#MiddleClass Loses State & Local Income Tax Deduction 2 Pay 4 Corporate #TaxCuts???

The Republican House and Senate have proposed eliminating the state and local income tax deduction on Schedule A of Form 1040 federal returns. American taxpayers who itemize can take this deduction to reduce their federal tax burden. It doesn’t seem fair to force the middle class to pay more taxes just to give Corporate America a big, fat tax cut. The lobbyists for Corporate America say we will get the money back in the form of higher wages, but when Reagan cut corporate taxes in 1986, wages did not increase during the past 30 years. Wages remained stagnant. The proof is in the pudding! The following chart shows what has happened to middle class wages since the 1970s … a steady, downward progression …

Middle Class Wages [Source: billmoyers.org]

Middle Class Wages [Source: billmoyers.org]

In contrast, take a look at corporate profits since the 1950s … a steady, long-term progression upward!

Corporate Profits [Source: U.S. Bureau of Economic Analysis]

Corporate Profits [Source: U.S. Bureau of Economic Analysis]

Due to hard-working American workforce, corporate productivity has steadily increased, as well …

Corporate Productivity [Source: Mother Jones]

Corporate Productivity [Source: Mother Jones]

I understand that Republicans always have an allegiance to Corporate America, but basic fairness is at stake here … It is not fair to take away deductions that help the middle class and use that money to pay for corporate tax rate of 20%.


The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.

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