A Repub president, a Repub Congress and now it is time for the Repub stand-by….TAX REFORM.
They are in control….time to do what they always want to do…..Tax Reform….those policies that screw the Middle Class and give the wealthy incentives and more money.
Trump made it official……he put his tax plan out there……
President Trump launched his push for tax reform Wednesday in Indianapolis, promising a “once-in-a-generation opportunity” and “revolutionary change.” “Under our framework, we will dramatically cut the business tax rate so that American companies and American workers can beat our foreign competitors and start winning again,” USA Today quotes Trump as saying. The New York Times reports the proposed framework reduces the corporate tax rate to 20%, doubles deductions for married and single filers to $24,000 and $12,000 respectively, and reduces the number of tax brackets from seven to three. The top bracket would see a reduced tax rate; the lowest bracket would see an increased tax rate. Overall, Trump claims the plan represents the biggest tax cut in history: “There’s never been tax cuts like we’re talking about.”
Trump is promising the middle class will be “the biggest winners” of his tax plan, which will cause “jobs to start pouring into our country.” But the framework presented lacks details to show whether that would or would not be the case. (CNN reports Trump also claims the plan is “not good for me,” but that’s impossible to prove without his tax returns.) The framework does, however, include details that will specifically benefit rich Americans, for example by getting rid of inheritance taxes paid by the country’s wealthiest families. Without further specifics, the head of the nonpartisan Committee for a Responsible Federal Budget calls Trump’s tax plan “nothing more than a fiscal fantasy.” Trump says he wants to work with Democrats to fill in those details, but Republican leaders say they’ll likely use a special rule to pass tax reform without Democratic support.
It has all the selling points needed…..jobs creation, more tax savings for the workers,etc…..for instance…..a few highlights to work with….
- Corporations: The New York Times reports that the plan calls for a steep reduction in the tax rate paid by corporations from 35% to 20%, which Trump sees as vital to stimulating the economy.
- Standard deduction: This would roughly double to $12,000 for individuals and $24,000 for married couples, “meaning Trump can accurately argue that many more low income earners would pay no tax under his plan,” writes Jonathan Swan at Axios. But:
- The fine print: The savings in the larger deduction isn’t quite as big as it appears, notes Business Insider, pointing to the fine print: “To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction.” For example, a single person with no dependents currently takes the standard deduction of $6,350, plus one personal exemption of $4,050. The new plan replaces that with a single deduction of $12,000, or a 15% increase.
- Wealthiest: Though initial plans called for a reduction in the top rate paid by the wealthiest individuals (those who make more than $418,000) from 39.6% to 35%, Politico reports that this is “now open to negotiation.” That’s partly because Trump wants to make sure Democrats are on board, reports CNN. Another idea being floated is to impose some kind of tax surcharge on the wealthiest Americans. The plan also calls for the elimination of the estate tax and the alternative-minimum tax.
- Lowest rate: It would reportedly rise from 10% to 12%, though the increase for low-income Americans would likely be offset by the bigger standard deduction.
- Simplification: The current system has seven brackets ranging from 10% to 39.6%. Trump wants to reduce the number of brackets to three, perhaps from 12% to 35%, reports the Hill. (Income levels for each have not been determined, and it’s possible a fourth bracket would be added for the wealthiest Americans.) Under the changes, Trump says most Americans would be able to fill out their taxes on a single page, reports the AP.
- Elderly parents: A new credit of up to $500 would be created for those caring for non-child dependents, including parents, per USA Today. The newspaper’s roundup also notes that people would no longer be able to deduct state and local income or property taxes, which would hurt residents in high-tax states such as California and New York.
- More details: Business Insider has a comprehensive roundup of what is known about the plan, including a 25% rate for “pass-through businesses,” which applies to those who own their own business The plan would also increase the Child Tax Credit, an idea championed by Ivanka Trump.
“Trickle Down Economics” makes a comeback……a theory that has NOT worked in 30 years and so why not keep pushing a lie…..something the GOP has mastered.
And yes I have an idea for tax reform that I posted a month ago…..
Listen to the rhetoric and smile or dig through the manure pile and find the truth of the matter……this is a typical GOP proposal…..wealthy get richer and the working stiffs get buried…..
The one thing that the GOP seems to ignore….what may have worked in the 1980’s will not work in the 21st century…..but Hell keep pushing that failed theory….dress it up and force feed it to the population.