The Republicans' tax-cut proposal is finally out, and it's as bad as many feared. In some ways, it's worse.
The plan would cost $1.5 trillion — so much for the GOP's solemn concern about the national debt — a figure that cannot grow without exposing the plan to a Senate filibuster. To keep the cost at that figure, the plan eliminates some popular deductions, one of which would hit Oregon particularly hard.
Despite Republicans' claims to the contrary, the plan is largely a huge gift to the wealthy and corporations. The top tax rate of 39.6 percent is retained — but only for those making $1 million or more. The standard deduction and child tax credit would increase, and households earning up to $90,000 would pay 12 percent. Meanwhile, the corporate rate would drop from 35 percent — which almost no corporation actually pays — to 20 percent, cutting the corporate tax bill by $1 trillion.
The mortgage interest deduction would be capped at $500,000 for new home purchases, down from $1 million.
State and local income taxes would no longer be deductible. Oregon has one of the higher state income taxes because it lacks a sales tax.
Deductions for medical expenses and interest on student loans also would disappear. It's hard to see how that isn't aimed directly at middle-income taxpayers.
Rep. Greg Walden praised the plan, calling it "simpler, fairer and more affordable ... for hard-working Oregonians." If you disagree, he's the one to call.