Change to the federal tax code is always a hot topic and it is gaining steam right now. It’s clear that a goal of President Trump will be elimination of the estate tax. 462 more words
As you can see…these are tax cuts….reform would require legislative action on the tax code….a thousand plus page code…..this does nothing to reform….but it does return us to the days of the damn silly “trickle down economics”….or “voodoo economics”…….
The White House on Wednesday began laying out President Trump’s tax plan, which calls for sharp cuts for businesses and individuals. The administration says the cuts will spur economic growth and bring jobs and prosperity to America’s middle class, though lawmakers were worried about ballooning federal deficits. Much of the details have yet to be hashed out with Congress. Some highlights, per the AP:
- Trump’s plan would reduce the number of personal income tax brackets to three from seven: rates of 10%, 25%, and 35%. The current maximum is 39.6%.
- It would double the standard deduction for married couples to $24,000, while keeping deductions for charitable giving and mortgage interest payments.
- The administration plans to provide tax relief for families with child care expenses, too, although the specifics have yet to be included.
Small businesses that account for their owners’ personal incomes would see their top tax rate go from 39.6% to the proposed corporate tax rate of 15%. Treasury Secretary Steve Mnuchin, who earlier called the plan the “biggest tax cut” in history, said the change for small-business owners—a group that under the current definition could include doctors, lawyers, and even major real estate companies—would be done to ensure that wealthier Americans could not exploit the change to pay less in taxes.
- The plan would trim deductions utilized by wealthier Americans. This would include deductions for state and local tax payments, a change that could alienate support from lawmakers in states such as California and New York with higher state taxes.
- It would also repeal the estate tax and the alternative minimum tax.
- On the corporate side, the top marginal tax rate would fall from 35% to 15%.
The trickle down was promised in the 1980’s and so far that trickle has not found the middle class….and yet the GOP still thinks the idiots in society will believe the bullshit from 35 years ago…..and guess what…they will! Please stop calling it reform and label it what it is….a cut….nothing more than that.
President Trump’s tax reform plan unveiled Wednesday heralds the return of the Laffer curve, or as it’s more commonly known—thanks to the first President Bush—”voodoo economics.” The New York Times reports the Laffer curve was first sketched on a napkin by Arthur Laffer in 1974. The curve says that if you cut taxes enough, you can make up for the financial shortfall through economic growth. And that’s exactly what Trump’s team is pitching—though it’ll mean adding billions upon billions of dollars to the national deficit while waiting on that promised growth. Here’s what else you need to know about Trump’s tax reform plan:
- While Republican lawmakers were supportive in public, they’re grumbling in private, CNN reports. Congressional Republicans are upset Trump’s promised tax-reform plan is more of a tax-cut plan. One senior GOP aide says it’s “not even close” to tax reform.
- CNBC reports the plan is missing one thing that Wall Street really wanted: a steep reduction—all the way to 10%—for companies that bring earnings back to the US from overseas.
- There are eight reasons Trump’s tax reform plan likely won’t get through Congress, according to the Washington Post. They include that Republicans may not tolerate a huge deficit increase and that the GOP head of the Senate Finance Committee is openly wondering if it’s a “good idea.”
- Politico argues the plan released Wednesday was less a step toward actual tax reform and more something for Trump to use to bolster his 100-day presidential resume. It was a single page of “mostly general principles” largely carried over from campaign promises.
- Mother Jones reports Trump’s tax reform plan will make the Trump family richer in four different ways, including by cutting the tax rate for “pass-through corporations.” The Trump Organization is made up of pass-through corporations, and the plan would cut the tax rate of Trump and his children from 39.6% to 15%.
- But we may never know exactly to what extent Trump stands to benefit from his tax reform plan, according to the Washington Post, as Treasury Secretary Steven Mnuchin says the president still “has no intention” of releasing his tax returns.