And I didn’t think that was possible (boldface mine):
Democrats criticized the plan as a giveaway to the rich because a number of the proposed changes, including lower business tax rates and a repeal of the estate tax, would disproportionately benefit the top sliver of rich households…
Businesses could immediately deduct capital investments, except for buildings, for at least five years, instead of depreciating them over time as is the case today. The move is meant to spur spending on new machines and the workers needed to run them.
“This is a supply-side approach that is going to lower the cost of capital, encourage investment, make America the best place in the world to invest money, and in the process we’re going to create incentives to expand America’s productive capacity,” Sen. Pat Toomey (R., Pa.) said.
Individual tax rates would be set at 12%, 25% and 35%, with the option of a fourth higher rate on the highest-income households. The plan would repeal the alternative minimum tax and estate tax, a declaration that drew cheers at the House GOP retreat, according to a person in the room….
Administration officials said that some families making under $100,000 and taking the standard deduction could save $1,000 a year. But within hours of the document’s release, groups allied with Democrats circulated scenarios in which low-income households and senior citizens could instead see their taxes rise.
Gregg Polsky, a tax-law professor at the University of Georgia, said the increase in the standard deduction, combined with the elimination of state and local tax deductibility, would give many households less incentive to itemize their tax deductions, making provisions like a mortgage-interest deduction less appealing.
Married taxpayers would have to have at least $24,000 in combined mortgage interest and charitable deductions to get any benefit at all from itemizing, something that has charities and real-estate agents concerned.
“It keeps the mortgage deduction in name, but in practice only people with very large charitable contributions or million-dollar homes will benefit from it,” Mr. Polsky said.
Supply-side concerns, even as corporations are sitting on $2 trillion cash? Of course.
And up to $1,000? My Uncle Harry did use to say, “Rich or poor, it’s always good to have money”, but that’s just not that much money.
But the dumbest thing is that the only people who will benefit from the mortgage interest deduction will be rich people with really big houses–like Donald Trump (speaking of whom, now would be a really good time for him to release his taxes). There’s an argument to be made for eliminating the mortgage interest deduction entirely, but the stupidest policy would be to eliminate it for everyone except the rich.