that s have high state and local taxes are going to lose their deducti deduction. the rich i meant. i just want to make sure i got for it s rich in there. go on. you re right people like their own taxes cut but don t necessarily care about anybody else s taxes. problem is we have a huge deficit republican have spent 20 or 30 years complaining about, especially when a democrat is in the white house and now suddenly republicans are less concerned about the deficit and more interested in tax cuts. there s no evidence this will be stimulus to the economy or that corporate tax will trickle down to the middle class or that the middle class will benefit from this they will lose deduction and people will lose their health care and will have cuts to medicare. it s a lose-lose situation for the middle class and i don t know how republicans sell it to
and then we ll get together and reconcile the differences. that s how this process will continue. reporter: just to lay out the path, the house is expected to take up the bill on the house floor next week. senate will be marking up their bill in committee next week. the week after thanksgiving, the senator wants to move their bill to the senate floor. after that they will try to reconcile by christmas as the president has made clear he wants done. thanks very much. if you look at the republican tax bill is did you evers just enough from the house version to cause a tax policy showdown. first, some proposals are the same as the house plan, both nearly double the standard deducti deduction, expand the child tax credit and appeal the alternative minimum tax but the senate version makes key changes. it keeps seven tax brackets instead of cutting four and preserves the mortgage interest
caused you to vote no? it is important we re able to make major changes to the proposal to eliminate theeducti right. we have some of the highest property taxes in the country, income taxes, sales taxes. this is a deduction that s been around for a century. this is one of the ways abraham lincoln helped finance the silver war. it would not be a good policy for us to go from 100% to 0% two months from now, as far as this deduction goes. there are many maembers like me some who might have voted yes on last week s budget, who believe we should make major changes to that component, so we re delivering tax cuts for all of our hard-working people across the country, who were promised it last november, not just picking winners and losers. in a way, by getting rid of the deducti deduction, it is like a geographical redistribution of wealth from a high tax state to another. what shouldn t be lost on this is one of the reasons our state and local tax deduction is so
that s a sort of keystone indicator, i guess, of how progressive your tax system is. and it s pretty low now. you know compare it to the clinton era rates, which is kind of all we re talking about, right? going back to the clinton era rate of 39% is it about fairness? or is it about lessening the deficit? because it doesn t really do a whole lot for the debt or deficit over ten years. well, it s about fairness, but it s also about what are the better options? given that the wealthy are really skating by these days. and so how do you collect more revenue from them? and all the various ideas about, well, you cap this deduction, and cap that deduction. there are not only political constituencies that will fight tooth and claw on every deducti deduction, there are some reasons, fairly good reasons why you would want to think twice.
this is how it was done when john f. kennedy, when ronald rag on. the difference with the 86 tax reform is they did not pick a number ahead of time that they were bound by. they didn t say we re going to cut every rate by 20. and then figure it out. they said what can the rate go down to as we start to eliminate and shave off these deducti deductions. and they made the math decide what the rates were going to be. which is the only reasonable way to do something like that. here s the other thing. romney picked this 20% tax cut numbers during the primaries to appeal to the republican base to show he was sufficiently supply sighter enough. now has he not only changed his plan, but he s changed what his philosophy was. his entire floos if i of how to grow the economy was to allow the job creators like him to keep more of their money and that s somehow imaginically going to make them work harder and create more jobs. now we can see even that thing