Jul 12, 2017

Trump's tax-deduction plan is a GOP gamble

Carolyn Kaster / AP

A part of President Trump's tax plan has both Republicans and Democrats unsure of where to stand, according to a report from Bloomberg. The proposal to cut the state and local tax deduction has ups and down for both parties.

Republicans could benefit: Cutting the deduction could raise approximately $1.3 trillion over the next 10 years, "offsetting steep individual and corporate rate cuts Trump and Republicans are eyeing." Also, taxes would be shifted onto Democratic states like New York, New Jersey, and California.

But: This could have negative implications on citizens in their districts. Losing the deduction could "make standard deductions more attractive," resulting in a decrease of local home values. Bloomberg reported that home prices could fall by an average of 10 percent.

Democrats could benefit: If Republicans lose popularity due to the proposal, which is possible considering some of the vulnerable districts went blue during the 2016 election.

But, Democrats are stuck: Keeping the deduction as-is would mean they're "supporting a tax break for some of the wealthiest Americans," something they've normally argued against.

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Situational awareness

Photo: Brett Carlsen/Getty Images

Catch up on today's biggest news:

  1. Mike Bloomberg offers to release women from 3 NDAs
  2. Wells Fargo to pay $3 billion to settle consumer abuse charges
  3. Bloomberg campaign says Tennessee vandalism "echoes language" from Bernie supporters
  4. Scoop: New White House personnel chief tells Cabinet liaisons to target Never Trumpers
  5. Nearly half of Republicans support pardoning Roger Stone

Wells Fargo agrees to pay $3 billion to settle consumer abuse charges

Clients use an ATM at a Wells Fargo Bank in Los Angeles, Calif. Photo: Ronen Tivony/SOPA Images/LightRocket via Getty Images

Wells Fargo agreed to a pay a combined $3 billion to the Justice Department and the Securities and Exchange Commission on Friday for opening millions of fake customer accounts between 2002 and 2016, the SEC said in a press release.

The big picture: The fine "is among the largest corporate penalties reached during the Trump administration," the Washington Post reports.

Bloomberg offers to release women from 3 nondisclosure agreements

Mike Bloomberg. Photo: Brett Carlsen/Getty Images

Mike Bloomberg said Friday his company will release women identified to have signed three nondisclosure agreements so they can publicly discuss their allegations against him if they wish.

Why it matters, via Axios' Margaret Talev: Bloomberg’s shift in policy toward NDAs comes as he tries to stanch his loss of female support after the Las Vegas debate. It is an effort to separate the total number of harassment and culture complaints at the large company from those directed at him personally. That could reframe the criticism against him, but also protect the company from legal fallout if all past NDAs were placed in jeopardy.