President Trump caught a lot of flak for his initial tax plan proposal because the provisions benefited rich Americans significantly without giving anything to the middle-class citizens. The President appears to be aiming to pull more of his critics to his side by constantly pointing out how the latest tax plan is not at all having this slant. The Republicans are keen to promote it as a pro-middle class American plan but unless details become clearer, there is no way to say if their claim actually has substance.
Analysts disagree with Republican claims
The Republicans may be touting their tax reform plan as the best thing to happen to middle-class citizens but many analysts have quite the contrasting opinion. They feel that some marginal tax burden relief may be seen by them but the bulk of the tax relief is being saved for top tier income earners, that is rich Americans. The Urban Brooking Tax Policy Center has supported this view too via a report that was published by them earlier.
State, local tax elimination gains support from Mike Lee
Meanwhile, Sen. Mike Lee has stated that he will fight for the elimination of local and state tax deductions that is also part of the controversies surrounding the tax plan. These are moves to keep the United States deficit within the control and as such, address a very critical point indeed. Lee stated that he was in complete support of such eliminations because he feels that without these, states with higher tax burdens are getting an unfortunate and unfair advantage.
In taking this stance, Lee is going up against many of his own party members who feel that this addition to the tax reform proposal is unnecessary. Rep. Peter King was one of the people who stated a contrary opinion last week when he said that the discussion at state and local level should remain. He pointed out that removing the deduction will result in 'hard working New Yorkers' being taxed twice. This particular portion of the tax reform has drawn a lot of flak and as a result, the White House has taken a step back, it appears. Talking about it, Gary Cohn indicated to a Bloomberg interviewer that the provision is still open for discussion. He hinted that it may be part of the discussions in Congress about the tax reform plan.