Senate Minority Leader Schumer on Tax Reform CSPAN October 5, 2017 6:32pm-6:53pm EDT
senator schumer: state and local deductibility. first, i would like to show you how widespread it is and doesn't just effect 4 states and why the proposals that the republicans are now making. the republicans know they are in trouble with state and local tax deductibility. so they are trying to make come prime misses. they either give it up or end this idea that they are going to remove state and local deductibility. first, there are 44 american taxpayers who take the state and local deduction. that's not a small number. that's a third of all taxpayers. we are talking about taxpayers, a family of four who submits one
tax return as a taxpayer. 44 million out of 130 million taxpayers. a third of americans are affected. and the amount of money they get is large, thousands and thousands of dollars a year. lmost no place is it less than $5,000. and finally, the myth, oh, this just affects, new york, new jersey, california and massachusetts. so the bottom line is simple. every state is affected. large numbers of people are affected in every state. and they are affected in a very deep way. their taxes will go up. and here are some numbers. and comes from the i.r.s. numbers. let's see which ones we have first. they are all over the place.
there's california which everybody points to and 34% of the taxpayers are affected. about the same percentage of taxpayers are teakt affected in georgia. they take advantage of state and local availability. colorado, 32%. let's look up -- these are the highest states, if you look at the highest states, orrin hatch, chairman of the finance committee, 35% of his taxpayers are affected, more than a third and get one of the highest rates of deduction, $12,954. that's thousands and thousands of dollars. in fact, the percentage in utah and percentage in new york are the same. ok.
let's look at this one. iowa, 29%. $10,000. you are going to go home, mr. iowa congressman or plrm iowa senator and tell a third of your taxpayers they are going to lose a third of their deduction. north carolina, republican state, 29%. and look at idaho, 28% at 8,200, ok? now you say, well they are going to double the standard deduction, yeah. they're are. but if you have a family of three, the standard deduction is wiped out because you lose the personal deduction. that's $4,000. $4,000 times three is $12,000. if you are a family of four, you
not only the state and lot deduction but the standard deduction because the personal exemption is gone. kansas, 25. kentucky, 26. the lowest states, the ones who have the least effect of far more effect. south dakota and west virginia, 17% of the taxpayers. 17%. $9,000 of deductions lost in west virginia, $6,000. this is deep and wide. the effect of state and local deductibility removing the effect of removing the deductibility is wide and going to kill the republican plan as it is. and by the way, there are states. you know how many this is
affects congress members that re republican members? huge. and there are 100 districts most affected. so aside from the affect it cuts medicare and medicaid and favors the wealthy. and let me say this, i was involved in tax reform in 1986, the biggest problem who wanted to do reform was state and local deductibility, they had to remove it. the same thing is going to happen here. when the republicans have it, they have a $1.3 trillion hole to fill. it will increase the deficit by $1.3 trillion. one other thing before i get to the second point. when they said it was $1.3
trillion, how could it be four states? it had to affect all of america. and now it does. now they are worried and has een worried that gary cohn had a number of republicans with a number of districts and proposed two solutions, the solutions they proposed are half baked and won't work. one, you get a choice of the mortgage deduction or the state and local deduction. if you choose, your taxes are going to go up, because if you don't itemize, you are using both. what kind of choice is that? and furthermore, they are saying choose between getting rid of the mortgage and state and local deduction. left or right? that is a great solution.
but the second one is they say this goes to rich people. apital gains, lowering the top rate, excise tax, those affect rich people. rich people don't have that much income in property. they have it in liquid assets. solisen to this. let's say they limited to it with incomes to people with under $200,000 a year. that is 50% of the value. there are huge numbers of people who make between $50,000 and 2 50,000. they aren't going to say if you make $175,000 you have to pay this. that is their base swinsy. so to actually have an effect to prevent from building a whole in the deficit, you have to go deep
in the upper middle class. not going to happen. both solutions are rotten. the only question is how could they have been so dumb to put this in? within the first week, it's bubbling. and the only answer i have, this bill was not written by republican congressmen and senators. it was written by the hard right and the freedom caucus said we continue go for a bill unless the hard right, koch brothers, roups like that, americans for prosperity, grover nordquist's group, citizens for tax reform and those guys don't like states to charge more. this idea that this new york, alabama subsidizing new york, new york has subsidized more.
we are a doney state. so my plea to the republican, my republican colleagues, we want to work with you on tax reform that helps the middle class and oesn't give tax breaks for the wealthy. get rid of the idea of getting rid of the state and local deduct and how many taxpayers it affects through the nation. first on this subject and on others.
>> they may get them on the budget but every republican is voting to cut medicare $450 billion. i wouldn't want to take that home. and cut medicaid $1 trillion and could help a lot of rich people. they may be able to get a budget through. i don't know what the numbers were today. but i'll tell you this, if i was a house candidate running against republican congressman, i salivating that they voted for this. cutting medicare and medicaid to help the wealthy get a tax blake? i wouldn't do that if i were them and i wouldn't do it if i was a republican senator.
another question on this subject nd we'll go to others. a.t.f., n.r.a. said ould this be a smoke screen? senator schumer: i think getting rid of bump stocks makes sense and anyone who thinks that solves the problem is crazy. we have to do rational gun control. the best thing that would pass that would do the most good is universal background checks and we will keep fighting for it. so i think bump stocks is fine but doesn't come close to solving the problem. and i challenge the president. before he ran for office, after sandy hook he said he supported president obama's proposals on gun control and gun safety and i
challenge the president. this is an where you could do some good. you say you are a leader, don't follow the n.r.a. this is a way to show leadership. call democrats and republic caps and come up with a rational solution and i would be happy to participate in such a gathering. other questions. reporter: i'm wondering if you could tell us about offsets for the disaster relief package and chairman mark walker he is going o insist on offsets. senator schumer: we have never for offsets. we believe it's a grand tradition of america that when one area has trouble, the rest of america pulls together
because every one of us knows our area to be in trouble next. i heard some of the offsets are unpal atable. but leader pelosi mentioned that to me yesterday. any others? ok, yes. reporter: one more about state and local. senator schumer: i love this issue. reporter: you said this is a nonstarter. senator schumer: it will be a nonstarter for republicans. it's going to force enough votes that they can't pass it. reporter: if they come up with these discussions that chairman brady says, would democrats would be willing to talk about that? senator schumer: on state and local? there is no solution unless you dig dedown in the middle class. i don't think they can come up with a solution. reporter: how about the idea of
turning the credit into a deduction. senator schumer: when so much of the money goes to people making 1,000,000, it just doesn't work. it's like saying, ok, constituents, do you mind, will you accept it if i chop two instead of five of your fingers off. it's not quite an appealing message. reporter: in the budget resolution, how do you feel berm republicans' plans to cut funding for department of transportation? senator schumer: no sense. the president says he wants infrastructure on one hand and his bucket slashes programs in the transportation budget and just doesn't add up. and he was told and i was glad he said this, he told congressman and senators, republicans and democrats that
he realizes that they don't work. he told me on the phone, i relled they don't work. i won't tell you which that tried this and failed. isaid do you mean indiana and said vice president pence told you this? and he said yes. [ [indiscernible] senator schumer: it's not going to serve their purposes because the amount of deficit or the amount of people the that will be hurt are huge. my guess is 90% of the people wouldn't be covered. there aren't that many people who make over a million dollars but the people $100,000. reporter: can you address the republicans saying that their plan is middle-class tax relief
and don't know the amount of child tax credits -- senator schumer: it is impossible, impossible to have this be a tax package that's aimed at the middle class where the bulk of the benefit goes to the middle class given their structure. they have to strange the structure. and here's what i think. they are ashamed of this and know unpopular it is. they have to go along with the hard-right tax masters and the billionaires who want even more money. but if they were to get up and argue and say hey, we believe in trickle-down and give tax breaks for the wealthy, it will create more jobs, then they would be more honest about it. but they are not. it's just like health care.
and just as health care was brought down because what was in it was unpopular with the american people, i believe their tax reform bill will be brought down. the more they learn about it, the less likely they will like it. if you would like copies of these charts, we can give you personal easized ones. autographed. [captions copyright national cable satellite corp. 2017] nick nick >> here's a look at our 8:00, e, starting the at richard smith testifies on the companies' data breach. the senate budget company marks
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