Middle Class Tax Cuts Expire After 2025
LEMON: Republicans say they have no intention of raising taxes on the middle class, but when you do the math, the picture is different. Let's take a closer look now, Brianna Keilar, CNN Washington correspondent is here. Good evening Brianna. Republicans are selling their tax plan as a tax cut for the middle class, but is that true?</s>BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT: Well, there's some short term middle class tax relief in the bills, Don, but no question that most of the benefit do goes to the ultra-rich and the corporations. I want to show you what we mean here. If you own a private jet, well the senate bill has a tax break related to the storing and maintenance of private planes. If you send your kids to private school, the house bill lets rich parents put $10,000 a year tax-free to pay for it. Republicans say they are getting rid of loopholes, but the house did keep this one a tax break for golf course owners who pledged to keep their property undeveloped. This is a tax break that benefits the Trump organization specifically since, of course, it owns multiple courses. And remember during the campaign when President Trump said that hedge fund managers were getting away with murder, because of a certain tax break. Well, that is one that is called the carried interest loophole, and it still exists in both the house and senate bills, although it is reigned in a bit. But maybe the biggest giveaway to the rich is the estate tax. Under current law, it doesn't apply to the first $5.5 million that is passed on as inheritance. Well the house bill would double that to $11 million and get rid of the estate tax entirely in 2024 and by the way, the tax policy center estimates that aside from super rich individuals, only about 80 small farms and businesses will even pay this tax this year, Don.</s>LEMON: Ok. So the richest Americans are getting plenty of breaks, you just described some of them, what about the middle class, Brianna?</s>KEILAR: Well the rich are getting nice goodies, then at the same time a lot of the middle class tax breaks, they're actually going to go away. Republicans argue that a bigger standard deduction will make up for that, but just look at some of the optics here, the house bill removes a $250 deduction that teachers can take for buying school supplies for their classrooms. This is an expense that many teachers pay out of pocket, because their school district cannot cover the cost. The senate bill actually doubles it, so this is something that is going to have to be worked out in conference. And the house bill also takes away the student loan deduction. About 12 million people use that in 2015, so many people, it also ends a handful of education tax credits as well as tax breaks for graduate school, tuition, and employer tuition assistance. According to the joint committee on taxation, these changes will cost students and families more than $71 billion over the next decade, Don.</s>LEMON: But you mentioned some sort of relief for the middle class. Why is it short term?</s>KEILAR: Well because the tax rates that the middle class, that they do get, they don't last. In the senate version, the vast majority of individual tax cuts expire after 2025, this includes the expanded child tax credit, the bigger standard deduction as well. And then cuts in individual rates. But the corporate tax cut and most of the other goodies for businesses, those are actually permanent. So it's a big reason why the joint committee on taxation found this, that in the senate bill, all Americans will get significant tax cults the first year, but then when you look in 2021, families who are earning 10,000 to $30,000 a year, middle class, of course, they're actually going to pay more, then by 2027, taxes go up for all Americans who are making $75,000 or less, Don.</s>LEMON: Yes, all right. Brianna, I have to ask you about something, something that you reported on yesterday and on this program as well. The President tonight changing his mind about reversing the ban on elephant trophies from African countries, trophies like these that his sons posted years ago, what can you tell us about it?</s>KEILAR: Imports of this trophies Don, which we discuss last night, this are -- would come from hunts in Zimbabwe, they were banned under the Obama administration because elephants are endangered and their numbers are plummeted on the African savannah in recent years and because the governments specifically weren't doing enough to ensure conservation. That is what the Obama administration said, but then yesterday, the fish and wildlife service said it was going to start issuing permits to allow these elephant trophies in from those countries. They said it would actually help elephant conservation, but there was a huge backlash, you had that from conservationists, very interested public in this issue, and so then you have this rare reversal tonight, President Trump tweeted this out, he said put big game trophy decision on hold until such time as I review all conservation facts, under study for years will update soon with secretary Zinke, thank you, then Interior Secretary Zinke put out this statement, President Trump and I have talked and both believe that conservation and healthy herds are critical as a result in a manner compliant with all applicable laws, rules, regulations, the issuing a permit is being put on hold as the decision is being reviewed. I mean Don, it's just worth pointing out, you don't see reversals very often with this administration and this is one we are witnessing tonight.</s>LEMON: Uh-huh. We're going to have more on this, Brianna, double duty, talking about two different subjects tonight. Have a great weekend. More on this after the break.