Sunday, October 24, 2021

Tax reform! ‘Free’ college? Can you hear the sound of politicians yelling?

If you think politicians talk too much, there’s good reason: They’re figuring out how to raise your taxes and cut yours.

When asked about Americans’ over-reliance on government services (a sentiment that has been growing for years), GOP Sen. Pat Toomey said that if you take away entitlement programs (and give Americans the freedom to shop on their own) then people will start putting in for services themselves.

The stakes of these decisions have only increased because of a tax reform plan passed by Congress and signed by President Donald Trump last year: Part of the plan repeals the individual health care mandate—a number one cause of rising health insurance premiums—and ends the deductions for state and local taxes. Without this provision, the Tax Policy Center estimates that the average net tax rate on a family making $52,000 would go up by 23%.

If a bill like this passes next year, states that rely on regressive taxes—like New York, New Jersey and California—will feel the biggest increases. And Republicans are also gearing up to give raises to tax-writing committees, while restricting how the Senate, House and the White House can spend money from the federal treasury.

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