Reply With Quote
BREAKING: House Freedom Caucus Supports Trump's Tax Plan
https://townhall.com/tipsheet/katiep...-plan-n2387396
Senate Republicans Embrace Plan for $1.5 Trillion Tax Cut
Senate Republicans, abandoning a key fiscal doctrine, agreed on Tuesday to move forward on a budget that would add to the federal deficit in order to pave the way for a $1.5 trillion tax cut over the next 10 years.
The Republican lawmakers, under mounting pressure to score a legislative win on taxes,
say a tax cut of this magnitude will stimulate economic growth enough to offset any deficit impact.
deficit-financed tax cut is at odds with longstanding Republican calls for fiscal discipline, including that tax cuts not add to the ballooning federal deficit.
it would then need to align with the House version, which was voted out of committee earlier this year.
That may prove a tricky task, since House lawmakers may be more reluctant to enact tax cuts that would add to the deficit.
only if the bill is not found to add to the deficit after a period of 10 years.
https://www.nytimes.com/2017/09/19/us/politics/senate-republicans-tax-cut.html?partner=rss&emc=rss
It's been 6 years PAST the 10-years after the Repug reconciliation tax cut of 2001 which CLEARLY added to the deficit, did not promote growth or job creation, so the 10-year window is pure bull
the 2001-2008 Repugs and the tax cuts and spending TRIPLED the national debt.
BREAKING: House Freedom Caucus Supports Trump's Tax Plan
https://townhall.com/tipsheet/katiep...-plan-n2387396
The lowest federal income tax bracket for individuals will sit at 12 percent, an increase from 10 percent, but will be offset by an expansion of the child tax credit.
Poor people without children pay more?
The lowest federal income tax bracket for individuals will sit at 12 percent, an increase from 10 percent, but will be offset by an expansion of the child tax credit. There will be three brackets total, down from seven, with the other two at 25 and 35 percent.
will not pay more pavlov
Poor people without children don't get a child tax credit.
will pay more ducks
lets what the deductions are first
Why raise the rate on the poor at all?
middle class is what democrats and republicans want to lower taxes on
So they all want the poor to pay more?
Dems moreso.
To cover Uncle Barry's "spend, baby, spend" spree.
Are they calling for an increase in the lowest tax rate?
The standard deduction will almost double per adult approx. - 6k to 12k single - 12k to 24k married.
Looks like that's bull .
https://finance.yahoo.com/news/doubl...143000571.htmlBut a do ent published by Jonathan Swan of the news website Axios shows this is badly misleading — the plan would increase the standardized deductions available to taxpayers by 15% or less.
Meanwhile, taxpayers who still wouldn't take the standard deduction under the Republican plan — those who would instead deduct things like mortgage interest — would pay tax on more of their income than they do now.
Here's the important 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."
Here's how that math works. Let's say you are single with no dependents, and you have a moderate income. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds up to $10,400, or $11,650 if you're over 65.
The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That's a 15% increase — except for seniors, who get a 3% increase.
And then your first dollar of taxable income would be subjected to a 12% tax rate, instead of the current 10%. But don't worry — the framework says "additional tax relief," as yet unspecified, will emerge for you during the committee process.
"skin in the game" to pay for the tax cuts for BigCorp and the wealthy
Let's use the average US median salary of $44148 rounded down to 44k for ease:
Current taxes for 2017 (single filer)
44000 - 10400 = 33600 taxable income
0-9325 taxed at 10% = 932.50 tax
33600-9325 = 24275 taxed at 15% = 3641.25 tax
932.50 + 24275 = 4573.75 total tax
Trump's plan
44000-12000 = 32000 taxable income
32000 taxed at 12% = 3840 total tax
As far as I know $3840 < $4573.75
It's a disgrace that this article is being passed around to all the media outlets without some one at least checking the math. I don't believe everything I read, and I always check my math especially when it comes to money.
https://www.forbes.com/sites/kellyph.../#db6e78570175
Last edited by rmt; 09-27-2017 at 06:53 PM.
I suspect I'm better under the current system. this . They give you the rules, you set your whole financial life up under those rules, then they change them.
Sorry CC. It is better for the poor and middle class, but with articles like the one above circulating, they won't believe that it benefits them. They won't do the math themselves and swallow false articles about tax breaks for the rich/more taxes for the poor and middle class.
I can still remember '86. Interest rates were stupid but bank and credit card interest was deductible.
Boom.
Your rates were "lower" but personal credit interest wasnt deductible.
Then they raised the tax rate later. Double .
That's why I think real estate is a good option for you. Everything's deductible - no tax on the yearly appreciation until you sell - depreciation (which you don't have to recapture if you leave to kids). Then the only thing you have to worry about is hurricanes :-)
Oligarchy paying the Repug s for the tax cut (of course, many in Congress and Trash, his Exec are millionaires who would benefit most of all, aka "voting yourself money"), and the $5T addition to the national debt.
Nobody increases the national debt like the Repugs (Reagan doubled it, dubya tripled it).
"Mr. Trash,
who has broken with precedent for modern American presidents by refusing to release his tax returns,
insisted that wealthy people like him would not benefit —
an assertion LIE that seemed improbable for a man who runs
a family-owned real estate empire and
whose children stand to inherit vast sums."
https://www.nytimes.com/2017/09/27/u...a04bf10a595031
LIE LIE LIE LIE
Relax for now, it's just a framework. Ryan will spend October changing it then send it to the Senate that is still working on their own plan. If things go smoothly (which they won't) we won't really have anything to judge until December.
Fact-checking President Trump’s tax speech in Indianapolis
“To protect millions of small businesses and the American farmer, we are finally ending the crushing, the horrible, the unfair estate tax, or as it is often referred to, the death tax.”
The president’s suggestion that “millions” of small businesses and farms are affected by the estate tax is absurd. According to the nonpartisan Tax Policy Center, only about 5,500 estates in 2017 — out of nearly 3 million estates — would have to pay any taxes. About half of estates subject to the tax would pay an average tax of about 9 percent. That’s because for a married couple, about $11 million is exempt from taxation.
Only 80 — that’s right, 80 — taxable estates would be farms and small businesses.
“Today, our total business tax rate is 60 percent higher than our average foreign compe or in the developed world.”
Trump exaggerates here. The United States certainly has one of the highest statutory corporate tax rates in the world, currently pegged as high as 39.1 percent when including state taxes. (The federal rate is 35 percent.)
Trump says it is 60 percent higher than “our average compe or in the developed world,” comparing 39.1 percent to the average rate for the other members of the Organization for Economic Cooperation and Development, which is 25.5 percent when not weighted for GDP. (It is 31.4 percent when weighted for GDP.)
Congressional Research Service, the effective rate for the United States is 27.1 percent, compared with an effective GDP-weighted average of 27.7 percent for the OECD.
The Congressional Budget Office, when it examined the issue, said the U.S. effective tax rate was 18.6 percent, which it said was among the highest of the biggest economic powers
“Americans waste so much money, billions and billions of dollars and many hours each year to comply with our ridiculously complex tax code. More than 90 percent of Americans use assistance to prepare their taxes.”54 percent of individual taxpayers pay preparers and about 40 percent of individual taxpayers use software that costs about $50 or more.
“A married couple won’t pay a dime in taxes on their first $24,000 of income. So a married couple, up to $24,000, can spend their money on their family, on their children, on what they have to do — so much better.”So a couple with two children already “don’t pay a dime” on their first $28,800. That’s because they get $12,600 in a standard deduction and $16,200 in dependent and personal exemptions.
“conservatively” estimated in 2016 that “Trump’s plan would increase taxes for about 8.7 million families,” but the number could be as high as 11 million under “reasonable assumptions.”
“The tax strategy that Ronald Reagan used to create an economic boom in the 1980s when our economy took off, the middle class thrived. And the family income of all families was increasing more and more, and it was a beautiful sight to behold.”This is a flip-flop. He was always a fierce critic of the bill, Reagan’s Tax Reform Act of 1986, which he now calls “a beautiful sight to behold.”
“Indiana is a tremendous example of the prosperity that is unleashed when we cut taxes and set free the dreams of our citizens. … All of this is possible because the people of this state have made a decision … [which] included electing a governor who you may have heard of, who signed the largest income tax cut in the state’s history, our very, very terrific person and terrific vice president, Mike Pence.”Vice President Pence did make the largest income tax cut in Indiana’s history — but he didn’t have a very high bar to overcome, and it was a modest cut.
Indiana’s individual income-tax rate was already the second-lowest in the nation when Pence took office.
state lawmakers raised taxes as soon as Pence left office.
“I’m doing the right thing and it’s not good for me, believe me. … We are also repealing the alternative minimum tax, or AMT.”from 2005, shows that the AMT increased his tax bill from about $5.3 million to $36.5 million. So at least in that tax year, he potentially could have saved $31 million.
Eliminating the estate tax, meanwhile, is likely to benefit his heirs.
https://www.washingtonpost.com/news/...nl_most&wpmm=1
As always, Trash is LYING LYING LYING LYING LYING
I helped create the GOP tax myth. Trump is wrong: Tax cuts don’t equal growth.
The best growth in recent memory came after President Bill Clinton raised taxes in the ’90s.
By the time Ronald Reagan was president, Republican tax gospel went something like this:
- The tax system has an enormously powerful effect on economic growth and employment.
- High taxes and tax rates were largely responsible for stagflation in the 1970s.
- Reagan’s 1981 tax cut, which was based a bill, co-sponsored by Kemp and Sen. William Roth (R-Del.), that I helped design, unleashed the American economy and led to an abundance of growth.
Based on this logic, tax cuts became the GOP’s go-to solution for nearly every economic problem.
In reality, there’s no evidence that a tax cut now would spur growth.
The Reagan tax cut did have a positive effect on the economy, but the prosperity of the ’80s is overrated in the Republican mind. In fact, aggregate real gross domestic product growth was higher in the ’70s — 37.2 percent vs. 35.9 percent.
GOP tax mythology usually leaves out other factors that also contributed to growth in the 1980s:
First was the sharp reduction in interest rates by the Federal Reserve. The fed funds rate fell by more than half, from about 19 percent in July 1981 to about 9 percent in November 1982.
Second, Reagan’s defense buildup and highway construction programs greatly increased the federal government’s purchases of goods and services.
This is textbook Keynesian economics.
Third, there was the simple bounce-back from the recession of 1981-82. Recoveries in the postwar era tended to be V-shaped — they were as sharp as the downturns they followed. The deeper the recession, the more robust the recovery.
how many Republicans even know anymore that Reagan raised taxes several times after 1981. His last budget showed that as of 1988, the aggregate,
ulative revenue loss from the 1981 tax cut was $264 billion and legislated tax increases brought about half of that back.
But there is no evidence showing a boost in growth from the 1986 act. The economy remained on the same track, with huge stock market crashes — 1987’s “Black Monday,” 1989’s Friday the 13th “mini-crash” and a recession beginning in 1990. Real wages fell.
Strenuous efforts by economists to find any growth effect from the 1986 act have failed to find much.
Despite huge tax cuts almost annually during the George W. Bush administration that cost the Treasury trillions in revenue, according to the Congressional Budget Office, growth collapsed in the first decade of the 2000s. Real GDP rose just 19.5 percent, well below its ’90s rate.
another test of the Republican tax myth in 2013, after President Barack Obama allowed some of the Bush tax cuts to expire, raising the top income tax rate to its current 39.6 percent from 35 percent. The economy grew nicely afterward and the stock market has boomed — up around 10,000 points over the past five years.
Republicans’ various claims are irreconcilable. One is that the rich will not benefit even though it is practically impossible for them not to
if they had released a complete plan — not just the woefully incomplete nine-page outline released Wednesday
Nor have they signaled that they’ll commit to a viable process. It’s worth remembering that the first version of the ’81 tax cut was introduced in 1977 and underwent thorough analysis by the CBO and other organizations, and was subject to comprehensive public hearings. The Tax Reform Act of 1986 grew out of a detailed Treasury study and took over two years to complete.
If they again look for a quick, easy victory, they risk a replay of the Obamacare repeal fight that wasted so much time and yielded so little.
https://www.washingtonpost.com/news/posteverything/wp/2017/09/28/i-helped-create-the-gop-tax-myth-trump-is-wrong-tax-cuts-dont-equal-growth/?undefined=&utm_term=.e8e847ad07dc&wpisrc=nl_most& wpmm=1
Any word if Repugs plan to kill the "carried interest" scam for billionaires?
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
