Trump's Prized Tax Bill Doesn't Do Anything He Promised
The president has trumpeted the extension of his 2017 tax plan, attempting to make the bill more palatable to non-millionaires by claiming that it would end tax on tips, overtime, and Social Security benefits. But as it turns out, none of that is actually in the text of the bill.
During a heated exchange between Representative Tom Suozzi and Thomas Barthold, the chief of staff on the Joint Committee of Taxation, it became abundantly clear that none of those promises would be happening.
'On tips—the president said, 'Your tips will be a 100 percent yours.' Does this tax bill continue the payroll tax on people's tips?' asked Suozzi.
'Yes it does,' said Barthold.
'Overtime. The president said, 'Your overtime will be tax-free.' Does this bill continue the payroll tax on overtime?' continued Suozzi.
'It does not exempt overtime from payroll tax,' said Barthold.
'The president said he's going to remove taxes from Social Security,' pressed Suozzi. 'Does this bill remove taxes on Social Security benefits?'
'The legislation provides an increased exception amount—' Barthold began, before Suozzi interrupted.
'But does it remove taxes on Social Security benefits?' reiterated Suozzi.
'It does not change Social Security,' Barthold said.
And while middle- and working-class Americans get shafted by the bill on what Trump promised them, the wealthy will continue to benefit from the president's bill—even if it's not what he claims he wants.
NBC reported Thursday that Trump pressed House Speaker Mike Johnson to raise the top income tax rate to close the carried interest loophole, raising the 37 percent tax rate to 2017 levels—39.6 percent—for Americans making $2.5 million or more.
But when Suozzi asked if the reconciliation bill included 'an increase in the tax rate for the wealthiest people in the United States of America,' the answer wasn't so promising.
'The legislation before you extends permanently the top bracket at 37 percent,' Barthold said.
'So it does not return it to what it was at 39.6 [percent]?' Suozzi continued.
'That is correct, Mr. Suozzi,' Barthold responded.
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