Democrats argue that the Republicans’ tax plan is a handout to the upper class, yet, millionaire Senator Chuck Schumer (D-NY), will only pay more taxes if the proposal is enacted into law.
Senate Minority Leader Schumer stands to make thousands of dollars by blocking the Republican plan to close tax deductions, according to The Daily Caller. According to publicly available federal tax returns, Schumer wrote off $58,000 in local and state taxes last year by relying on deductibles he is trying to block Republicans from ending.
Schumer made over half a million dollars last year, and he was able to write off $58,000 because of deductions that largely benefit high-income earners living in Democrat-controlled districts. Last year, Schumer wrote off in taxes slightly less than the median household income, which is just shy of $60,000.
A recent report by the Tax Policy Center revealed that the tax deduction enjoyed by Senator Schumer will cost American taxpayers about $1.3 trillion over the next 10 years. Middle-Class taxpayers are impacted the hardest by these deductions.
“Taxpayers with incomes over $100,000 would have the largest tax increases both in dollars and as a percentage of income,” if the deductions are eliminated, suggests the Tax Policy Center. “Those taxpayers would pay 90 percent of the tax increase from eliminating the deduction, and 40 percent of the total would be paid by just taxpayers with incomes over $500,000.”
After Republicans revealed their plans to overhaul the tax code last month, Senator Schumer came out against the plan and said he would reject any bill that eliminates state and local tax deductions.
“It gives huge tax cuts to the wealthiest and the biggest corporations, and socks it to the middle-class,” explained Schumer last month. “Eliminating state and local deductibility is a blow to the wallet of millions of middle-class taxpayers across the country.”
The Senator promised he would oppose “any bill that tries to deal with the state and local deduction,” which would personally cost him tens of thousands of dollars per year.
The tax plan proposed by Republicans seeks to simplify the tax code by reducing the number of individual tax brackets from seven to three, with the top tax bracket set at 35 percent.
While Schumer claims the Republican tax plan is a handout for the wealthiest Americans, the White House suggests otherwise. “We are committed to making sure the tax code is at least as progressive as the existing tax code, that it does not shift the tax burden from high-income to low- and middle-income taxpayers,” explained a spokesperson for the Trump administration, according to Politico.
Republicans are trying to get rid of a tax loophole Schumer used to write off $58,000. Does the US need tax reform?
Ultimately, as a millionaire in the Senate and the most prominent Democrat, all eyes are on Schumer to determine how much he personally benefits from the existing tax code that his party is struggling to save.
If Schumer stands to lose big on next year’s tax returns, it would imply that other millionaire professionals will also be paying more in taxes. If Schumer was expected to make money off of the new tax plan, it would support his claim that the Republicans are drafting a hand out for the rich.