TAX BILL WINNERS AND LOSERS

Republicans unveil their tax reform bill. But, as the House heads toward a vote, mayors from across New York state call on Members of Congress to vote no. So, if the bill is passed into law, how would it affect you? We’ll tell you!

Aired on November 14, 2017.

TRANSCRIPT

> IT'S A PIVOTAL WEEK FOR CONGRESSIONAL REPUBLICAN LEADERS AS THE HOUSE OF REPRESENTATIVES PREPARES TO VOTE ON THE PROPOSED TAX REFORM LEGISLATION.

LAWMAKERS WILL CAST THEIR VOTES THIS THURSDAY WITH NEW YORK REPRESENTATIVE PETER KING CONFIRMING THAT HE BELIEVES THE PARTY HAS THE VOTE TO PASS THE BILL DESPITE HIS CURRENT OPPOSITION.

A FAR STIFFER TEST IN THE SENATE IS EXPECTED WHERE THE MARGIN OF THE GOP MAJORITY IS FAR, FAR SLIMMER.

WHAT COULD BE THE DIRECT CONSEQUENCES OF THIS TAX REFORM ON NEW YORKERS SHOULD IT BE SIGNED INTO LAW.

FOR ANSWERS, WE TURN TO GREG DAVID, COLUMNIST FOR CRANE NEW YORK BUSINESS.

BUSINESS AND ECONOMIC PROGRAM.

GREG, WELCOME TO THE PROGRAM.

THANK YOU.

I WANT TO START BY ASKING ABOUT THE TAX PLAN.

CAN YOU BREAK DOWN HOW THIS MIGHT AFFECT NEW YORKERS ACROSS THE SOCIOECONOMIC PLATFORM?

WELL, EVERYONE'S TALKING ABOUT THE END OR LIMITATIONS ON STATE AND LOCAL INCOME TAX DEDUCTIONS.

THIS DOES NOT AFFECT EVERY NEW YORKER.

IT AFFECTS LESS THAN A THIRD OF NEW YORKERS.

AND THAT NUMBER IS GOING TO GO DOWN.

SO EVEN FEWER NEW YORKERS.

THOSE THAT ARE AFFECTED WOULD BE AFFECTED A GREAT DEAL AND TAX BILLS WILL GO UP.

THOSE ARE PEOPLE IN THE SUBURBS AROUND NEW YORK CITY AND IN MANHATTAN.

THEY'RE THE PEOPLE WHO HAVE THE BIGGEST STATE AND LOCAL TAX DEDUCTIONS.

IN THE SUBURBS IT'S A COMBINATION OF PROPERTY TAXES AND INCOME TAXES.

IN MANHATTAN, IT'S PRIMARILY INCOME TAXES.

THE AVERAGE DEDUCTION FOR A NEW YORKER WHO ITEMIZES IS MORE THAN $60,000.

SO IT'S OF ENORMOUS BENEFIT TO THOSE PEOPLE.

WE HEARD A LOT OF OPPOSITION COMING OUT OF LAWMAKERS FOR THE HOUSE.

I'M WONDERING, SHOULD WE HAVE ANY CONCERN OVER WHAT MIGHT BE COMING FROM THE SENATE?

NO, I MEAN THE FACT IS, THAT $10,000 PROPERTY TAX ALLOWS 5 OR 6 OF THE UPSTATE REPUBLICANS IN NEW YORK TO SUPPORT THE BILL.

BECAUSE IT GREATLY DIMINISHES THEY'RE CONSTITUENTS.

NOT ONLY PETER KING, BUT DAN DONOVAN HAS SAID HE'S GOING TO APOSE THE BILL AS ARE A COUPLE NEW JERSEY REPUBLICANS.

THE QUESTION IS, WILL IT BE ENOUGH.

AND THE INDICATION AT THE MOMENT IS NO.

THE WAY THE WHITE HOUSE IS PRESENTING THIS LEGISLATION, IS THAT IT WILL BE MORE DETRIMENTAL FOR THE UNER 1% OF AMERICANS.

THE PRESIDENT HIMSELF HAS GONE SO FAR TO SAY HE WOULD COME OUT AS A LOSER IF THIS PASSES.

THE UPPER 1% WHO LIVE IN NEW YORK CITY?

YES.

THE UPPER 1% WHO LIVE IN THE WHOLE COUNTRY ALMOST CERTAINLY NOT.

IT ALL DEPENDS ON WHERE YOU LIVE, AND THE LOCAL TAX STRUCTURE.

IT'S NOT GOING TO BE DETRIMENTAL FOR THE 1% IN FLORIDA OR TEXAS.

SPEAKING OF THE DIFFERENT CHANGES WITHIN THE LEGISLATION.

THERE'S BEEN A LOT OF TALK ABOUT WHAT IS COMMONLY REFERRED TO AS THE DEATH TAX.

IT'S REALLY JUST AN ESTATE TAX.

THE BILLS HAVE SOMEWHAT DIFFERENT PROVISIONS, BUT IF TAXES ARE PAID BY VERY FEW PEOPLE, BUT FOR THOSE THAT PAY IT, IT'S A LOT OF MONEY.

THIS IS CLEARLY A BENEFIT TO RICH PEOPLE WHO WANT TO PASS ALONG THE BUSINESSES OR WEALTH TO THEIR CHILDREN.

IT'S A VERY CONTROVERSIAL PROVISION.

IT'S ANOTHER REASON WHY TRUMP IS WRONG.

THIS WILL BE OF ENORMOUS BENEFIT TO TRUMP'S CHILDREN IF THERE'S NO ESTATE TAX ON HIS ESTATE WHEN HE PASSES IT ON TO HIS KIDS.

PART OF THE WHITE HOUSE'S PRESENTATION IS THAT THEY CAME TO THE TABLE WITH THIS TINY LITTLE POSTCARD WE COULD FILE OUR TAXES ON.

THAT MAY BE PRETTY EXCITING IF YOU FIND FILING YOUR TAXES TO BE AN OVERWHELMING AND INTIMIDATING EXPERIENCE.

WHO DOES THAT REALLY BENEFIT IF THERE'S SO FEW DEDUCTIONS TO BE MADE?

WE DON'T KNOW WHETHER THE POSTCARD'S GOING TO WORK.

WHILE THE HOUSE HAS ONLY FOUR TAX BRACKETS, THE SENATE HAS SEVEN.

ITS COMPLEXITY MIGHT NOT BE REDUCED.

THE ADMINISTRATION RULED THIS OUT AS A MIDDLE CLASS TAX CUT.

TAXES GO UP APPROXIMATELY A THIRD.

WHAT THIS BILL DOES IS LOWERS TAXES ON CORPORATIONS.

IT GREATLY SLASHES THE CORPORATE TAX RATE IN AMERICA, WHICH IS AMONG THE HIGHEST IN THE WORLD, IN AN EFFORT TO SPUR ECONOMIC GROWTH.

THE REPUBLICANS EVEN ARGUE THAT IT WILL INCREASE WAGES, ALTHOUGH MOST ECONOMISTS, ESPECIALLY THOSE WHO ARE IN THE PROGRESSIVE CAMP SAY IT'S JUST NOT GOING TO END.

AND THAT'S THE FUNDAMENTAL ATTEMPT OF THE REPUBLICANS.

BY LOWERING TAXES ON BUSINESS OWNERS, THEY HOPE TO SPUR --

THAT'S AN EXCELLENT POINT, WHAT DO WE KNOW OF WHAT THIS TAX LEGISLATION WOULD DO TO THE DEFICIT.

THERE'S BEEN TALK OF IT ADDING TRILLIONS OF DOLLARS TO THE NATIONAL DEBT?

WELL, THE PROPONENTS OF THE BILL ARE ALLOWED TO INCREASE THE BUDGET BY 1 $1/2 TRILLION.

THE DEFICIT BY 1 $1/2 TRILLION.

THAT'S WHAT THE LEGISLATION ALLOWS.

THE QUESTION IS WHETHER IT WILL INCREASE IT BY MORE.

THE BUDGET PLAN HAS UNSPECIFIED CUTS IN DOMESTIC PROGRAMS OVER THE 10-YEAR HORIZON OF THE BILL.

DOES THAT MEAN SOCIAL SECURITY?

DOES THAT MEAN MEDICARE?

DOES THAT MEAN MEDICAID?

COULD YOU GET THOSE CUTS WITHOUT IT?

OR WHAT HAPPENS IF POLITICS DON'T ALLOW THOSE CUTS?

SO THE ANSWER IS, THE DEFICIT'S GOING UP BY A LITTLE MORE THAN A TRILLION.

AND THE QUESTION IS, WHETHER IT WILL GO UP BY MUCH MORE.

THERE WILL DEFINITELY BE SOMETHING TO WATCH.

I THINK WE ALL HAVE A FINANCIAL INVESTMENT IN IT.

GREG DAVID, THANK YOU SO MUCH FOR JOINING US ON THE PROGRAM.

MY PLEASURE.

Funders

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