GOP tax bill cost estimate keeps rising
On paper, the tax package hammered out Friday carries a price tag of a net $1.5 trillion over 10 years. In reality, the cost in the form of federal deficits is virtually certain to be substantially higher.
That's because of a bit of fiscal gamesmanship. Republicans agreed the tax rewrite could add up to $1.5 trillion in debt over 10 years.
But to stay within that limit and add nothing to deficits beyond the decade, as a Senate budget rule requires, they put expiration dates of 2025 or earlier on almost all of the tax changes for individual taxpayers — but hardly any for corporations.
The temporary breaks include the doubling of standard deductions and increases in the child tax credit.
But Republicans, including Trump, freely say that future Congresses will extend many of those tax cuts.
Republicans are counting on something of a replay of what happened after President George W. Bush pushed through tax cuts in 2001 and 2003. Many of those had a sunset date of 2010, also to hold down the purported cost. Most were ultimately made permanent during the Obama administration, except some breaks for the wealthiest taxpayers.
If many provisions do become permanent, experts say annual federal deficits could rise by hundreds of billions of dollars more over the 10-year period and swell even more in years beyond it
Starting next year, individuals
will not be able to lower their tax income by deducting interest on home equity lines of credit or
forgiveness of student loans.
People will not be able to deduct as much of their mortgage interest and state and local taxes. But these restrictions also would be lifted after 2025, meaning that taxpayers could return to getting larger deductions for these expenses.
If the provisions are extended, the true cost of the Republican tax plan would be closer to $2.3 trillion in the first decade if interest payments for debt are included,
"This tax cut is almost by definition a tax cut for today's adults and seniors, and a tax increase on today's children and those that have not yet been born,"
Republicans have long complained about rising federal debt, leaving analysts stunned by how they have rallied around — and rushed to embrace — an expensive tax bill that polls have found to be unpopular with much of the public.
But here, too, they might be miscalculating. Some of the largest tax cuts in American history, including the packages approved in 1948 and 1986, didn't avert big losses for congressional Republicans in the next election.
https://www.rawstory.com/2017/12/gop...e+Raw+Story%29
So BigFinance flogging home equity loans supports (selling debt) this tax bill?
Takeaway: Repugs are creating a huge increase in deficit, which they will then use to cut Medicare, Medicaid, Social Security, TANF, CHIP, etc, etc.
iow, the tax cut is huge wealth redistribution upward from the lower quintiles to the top quintile.
Boutons I'm trying to get a question answered here can you not spam your garbage?
Darrin, buddy I didn't wanna figure it out my own I wanted to be spoonfed. Even clicking on a link is too much work
Open wide ....
Current:
43000 - 10650 = 32350 taxable income
10% of 9325 = 932.50
32350 - 9325 = 23025
15% of 23025 - 3453.75
932.50 + 4353.75 = 4386.25 total federal tax
Proposed:
43000 - 12000 = 31000 taxable
10% of 9525 = 952.5
31000 - 9525 = 21475
12% of 21475 = 2577
952.5 + 2577 = 3529.5 total federal tax
4386.25 - 3529.50 = 856.75 less tax
You would pay 24% more tax under current plan than proposed plan.
now do the same exercise for someone making $500k per year then $1M then $10M. No one doubts most people are going to get a tax cut under the proposed plan, but it's heavily skewed towards the wealthy. And at what cost?
destruction of the govt support for poor, sick, vets, retirees.
The Repug tax cut Repug is voluntary homicide of 100Ks of the disposable non-oligarchy, the bottom of the oligarchy's hierarchy, the serfs, the peasants, the losers.
Then after his cuts expire?
Hmmm. Sounds like a rental property llc is in my future.
500K
Current:
500k - 10650 = 489350 taxable income
10% of 9325 = 932.50
15% of 28625 = 4293.75
25% of 53950 = 13487.5
28% of 99750 = 27930
33% of 225050 = 74266.50
35% of 1700 = 595
39.6% of 70950 = 28096.2
Total tax = 149601.45
Proposed plan:
500000 - 12000 = 488000
10% of 9525 = 952.5
12% of 29175 = 3501 ** error in previous post - should have been 29175 instead of 21475 **)
22% of 43800 = 9636
24% of 75000 = 18000
32% of 42500 = 13600
35% of 288000 = 100800
Total tax = 146489.5
149601.45 - 146489.5 = 3111.95 less tax
Person would pay 2.1% more tax under current plan than proposed plan.
There - I've done 2 out of 4 - your turn.
Even more why rental real estate is the way for you.
There was no error in the first post.
McCain sitting this vote out.
McConnell won't seat Jones before the vote, although McConnell demanded that Scott Brown be seated immediately.
Trump’s Treasury Secretary Falls Apart And Admits It Might Be Years Before Worker Wages Go Up From Tax Cut
http://www.politicususa.com/2017/12/...iticus+USA+%29
And as we saw after the St Ronnie and Bush tax cuts, jobs won't go up, either.
Hilarious. Get your hand caught in the cookie jar, threatens journalist for doing their job.
This vote is why Repugs run for office, why the oligarchy s them for $Bs.
McCain missing this vote tells me he's in a very bad way, maybe going home to die.
Trump promised ‘America First’ would keep jobs here. But the tax plan might push them overseas.
Having devoted nearly 13 years to making tractor-trailer exhaust pipes, Johnson, 41, spent some of his final weeks at the plant watching Mexican workers train to take his job.
“They brought three or four groups at different times,” he said. “To learn the jobs that are going to Mexico.”
This was the kind of economic dislocation that President Trump vowed to prevent with his “America First” policies.
“He hollered that he was going to put a stop to that,” Johnson said. “And he obviously did not.”
Trump, in fact, might actually make things worse.
tax experts say, will probably happen to more Americans if the Republican tax overhaul becomes law. The legislation fails to eliminate long-standing incentives for companies to move overseas and, in some cases, may even increase them,
“This bill is potentially more dangerous than our current system,”
“It creates a real incentive to shift real activity offshore.”
The United States loses about $100 billion annually in forgone tax payments to corporate profit shifting,
The legislation, however, would permit the estimated $2.6 trillion that corporations have stockpiled outside the country to return to the United States subject to a rate expected to be around 15 percent.
In the future, corporations would be required to pay about a 10 percent minimum tax on overseas income above a certain level. The provision is billed as a way to discourage the movement of jobs and profit overseas. But the fine print of the new global minimum tax would make the problem worse,
“The overall effects of this are going to be unambiguously bad for the workers that it’s ostensibly designed to help,”
https://www.washingtonpost.com/busin...=.f2707401b7c6
This isn't Trash's tax plan. It's the oligarchy's tax plan rigged to enrich the oligarchy, and Trash will sign it with a flourish of lies.
Collins bought off, to be backstabbed by McConnell again
cold, bro
if only more american taxpayers had wells fargo stocks, they could have benefited and used those benefits to create jobs
you're not taking the trickle down far enough
Republican Tax Bill Hands 15 Corporations $236 Billion Tax Break
will provide 15 of the largest and most profitable American corporations a $236 billion tax cut, according to a report prepared for Sen. Bernie Sanders (I-Vt.) by the Senate Budget Committee Democratic staff.
In the final legislation released Friday night, Republicans are offering corporations a nearly 20 percent tax cut to repatriate trillions of dollars stashed in offshore tax havens. The proposed 15.5 percent rate would be a boondoggle for profitable, multinational corporations.
After making $59 billion in profits last year, Apple would be the biggest winner with a tax break as large as $47.97 billion on the $246 billion it has stashed in offshore tax havens.
Pfizer, with $775 million in 2016 profits, would receive up to a $38.8 billion tax cut; Microsoft up to a $27.7 billion cut after last year’s profits topped $20 billion; and, with $10.2 billion profits last year, General Electric would receive a tax break of up to $15.99 billion.
A repatriation tax holiday has not worked in the past and will not work now, according to the report. As part of the 2004 American Jobs Creation Act, corporations were allowed to repatriate funds at a 5.25 percent tax rate with the assumption that the money would be used to boost the economy and create jobs.
Instead, corporations brought $312 billion to the US and spent it on executive pay raises and stock buy backs.
- In 2004, Pfizer repatriated $35.5 billion, fired 11,748 workers and gave its executives a raise of $12.8 million.
- In 2004, Johnson & Johnson repatriated $10.6 billion, fired 4,062 workers, and gave its executives a raise of more than $32.8 million. The companystands to gain a tax cut of up to $12.9 billion tax break as a result of the Republican tax bill.
https://www.commondreams.org/newswir...lion-tax-break
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