White House considering scrapping some tax cuts for wealthy: report

[Free Vulcan]

The White House and congressional GOP leaders might scrap some aspect of a tax bill that would benefit wealthy individuals, The Washington Post reported, citing three people briefed on the discussions.

Administration officials are considering keeping the top individual tax rate at 39.6 percent, rather than lowering it to 35 percent as the White House proposed in April. The White House is also considering abandoning its efforts to repeal the estate tax, according to the report.

Abandoning those tax cuts could hep President Trump in his outreach to Democrats on taxes and other issues. Most Senate Democrats have signed a letter saying that they would oppose any plan that cuts taxes for those in the top 1 percent of income.

In a meeting with a bipartisan group of House members last week, Trump said that the rich "will not be gaining at all" under his tax plan. Treasury Secretary Steven Mnuchin also said last week that if rates are lowered for the rich, the cut will be offset by eliminating deductions.

Read more at: http://thehill.com/policy/finance/351353-white-house-considering-scrapping-some-tax-cuts-for-wealthy-report

[ABX]

"wealthy", they keep using that word. I don't think it means what they think it does.

That 39% hits households at just over $300K. That is a lot of small business owners, doctors, and people who simply just work their ass off.

[andy58-in-nh]

"wealthy", they keep using that word. I don't think it means what they think it does.

That 39% hits households at just over $300K. That is a lot of small business owners, doctors, and people who simply just work their ass off.

That's right. Income is not synonymous with "wealth".

Income taxes are paid by income earners, with a highly disproportionate amount of those taxes paid by the upper echelon of such earners.

There are many wealthy people who pay little or no income tax, owing to passive and unearned sources of income, and the creative use of estate planning tools such as trusts, annuities, life insurance, and tax-free investments. 

Our tax code produces enormous costs and wasteful activities that in turn result in a terrible misallocation of resources away from production and investment.

[Oceander]

That's right. Income is not synonymous with "wealth".

Income taxes are paid by income earners, with a highly disproportionate amount of those taxes paid by the upper echelon of such earners.

There are many wealthy people who pay little or no income tax, owing to passive and unearned sources of income, and the creative use of estate planning tools such as trusts, annuities, life insurance, and tax-free investments. 

Our tax code produces enormous costs and wasteful activities that in turn result in a terrible misallocation of resources away from production and investment.

Passive and unearned income is still income and is still subject to tax. 

[bilo]

Administration officials are considering keeping the top individual tax rate at 39.6 percent, rather than lowering it to 35 percent as the White House proposed in April. The White House is also considering abandoning its efforts to repeal the estate tax, according to the report.

I was wondering how long it would take before they dropped their claim that they want to eliminate the death tax. Heaven forbid I work all my life and create an estate that I want to give to my children.

One other thing that nobody seems to care about, the top 10% pay 70% of the income taxes. If they end up paying a higher % what incentive does the other 90% have to decrease spending, or restrain future taxes. They aren't paying for all the free stuff they want govt to provide.

[andy58-in-nh]

Passive and unearned income is still income and is still subject to tax.

True, but with the creative use of LLC's, loss rules and carry forward provisions, taxes are usually a lot lower than on ordinary income.