Trump, GOP tax plan cuts rates, nearly doubles deduction

[libertybele]

Sounds good on the surface, but we have Ryan leading the House.

Trump, GOP tax plan cuts rates, nearly doubles deduction

WASHINGTON –  President Donald Trump and congressional Republicans are proposing a far-reaching plan Wednesday that would cut taxes for individuals and corporations, simplify the tax system and nearly double the standard deduction used by most Americans.

"Too many in our country are shut out of the dynamism of the U.S. economy, which has led to the justifiable feeling that the system is rigged against hardworking Americans," says the blueprint, obtained by The Associated Press. "With significant and meaningful tax reform and relief, we will create a fairer system that levels the playing field and extends economic opportunities to American workers, small businesses, and middle-income families."

The public unveiling of the plan was set for later Wednesday.

The plan nearly doubles the standard deduction to $12,000 for individuals and $24,000 for families. This basically increases the amount of personal income that is tax-free.

http://www.foxbusiness.com/markets/2017/09/27/trump-gop-roll-out-tax-plan-cuts-rates-doubles-deduction.html

[austingirl]

I am opposed to an income tax in principle. I am not impressed with the things I am hearing about the plan. 25% is way too much for the average worker to pay when they take no federal benefits.

[TomSea]

MORE BETRAYAL
REPUBLICAN PLAN TO RAISE TAXES! - Drudge Report:

https://apnews.com/f609602269d54524aa14e1d9c74ec97c

The Latest: Trump draws red line on tax overhaul
31 minutes ago
https://apnews.com/f609602269d54524aa14e1d9c74ec97c Link copied!

WASHINGTON (AP) — The Latest on the Republican plan to overhaul the tax code (all times local):

11:21 a.m.

President Donald Trump has two red lines that he refuses to cross on overhauling taxes: the corporate rate must be cut to 20 percent and the savings must go to the middle class.

Gary Cohn, the president’s top economics aide, says any overhaul signed by the president needs to include these two elements.

Trump had initially pushed for cutting the 39.6 percent corporate tax rate to 15 percent.

So, so far, Matt doesn't like this.

[Mom MD]

He has gone soft on cutting taxes o  the people who actually pay taxes.  Another give away to those who do not pay income tax and a kick in the teeth to those who do

[Bigun]

Sounds good on the surface, but we have Ryan leading the House.

Trump, GOP tax plan cuts rates, nearly doubles deduction

WASHINGTON –  President Donald Trump and congressional Republicans are proposing a far-reaching plan Wednesday that would cut taxes for individuals and corporations, simplify the tax system and nearly double the standard deduction used by most Americans.

"Too many in our country are shut out of the dynamism of the U.S. economy, which has led to the justifiable feeling that the system is rigged against hardworking Americans," says the blueprint, obtained by The Associated Press. "With significant and meaningful tax reform and relief, we will create a fairer system that levels the playing field and extends economic opportunities to American workers, small businesses, and middle-income families."

The public unveiling of the plan was set for later Wednesday.

The plan nearly doubles the standard deduction to $12,000 for individuals and $24,000 for families. This basically increases the amount of personal income that is tax-free.

http://www.foxbusiness.com/markets/2017/09/27/trump-gop-roll-out-tax-plan-cuts-rates-doubles-deduction.html

So it's just more tinkering around the edges of the Marxist income tax with NO real reform involved!  That figures!

[Right_in_Virginia]

Tax Reform Aims to Simplify the Code, Slash Some Rates, Boost the Economy
Weekly Standard, Sep 27, 2017, Tony Mecia

<snip>

The proposed changes would affect nearly every taxpayer, and they seek to balance significant rate cuts for businesses with measures designed to help the middle class. Expect Democrats and the media to pounce on any changes that could result in wealthy people or companies saving money.

The changes, according to a senior GOP source in Congress, include:

•Altering individual tax brackets. There are now seven tax brackets ranging from 10 percent to 39.6 percent, which would be condensed into three brackets of 12 percent, 25 percent, and 35 percent. Legislators could impose another bracket above 35 percent.

•Nearly doubling the standard deduction. The standard deduction would nearly double, to $24,000 for married couples and $12,000 for individuals, and would include personal exemptions. This change reduces the effect of itemized deductions, which would make the tax code simpler and fairer. About two-thirds of households already take the standard deduction, a figure that would likely increase under the plan.

*Ending most itemized deductions. The plan would keep the popular mortgage-interest and charitable-giving deductions but calls for ending many others, but legislative committees will sort out the details. Federal deductions that could be on the chopping block include medical expenses, state and local income taxes, moving expenses and gambling losses.

•Increasing the child tax credit. The plan is light on details here, but leaders plan to significantly increase the $1,000-per-child credit as well as make it more available to people with higher incomes. Currently, the credit begins phasing out for married couples starting at $110,000 in earnings.

•Repealing the alternative minimum tax (AMT) and estate tax.

•Slashing the corporate tax from 35 percent to 20 percent. Economists say this would be a major boost to the economy because it allows companies to pay workers more, invest in equipment, and return money to shareholders. It also makes the U.S. more competitive internationally.

•Capping taxes on small businesses at 25 percent. Most business owners file taxes on their individual tax forms and pay the individual rates, which are as high as 39.6 percent. Legislation would include to-be-determined rules preventing a possible loophole in which high-income individuals reclassify their earnings as business income.

Read more:  http://www.weeklystandard.com/tax-reform-aims-to-simplify-the-code-slash-some-rates-boost-the-economy/article/2009841#!

[Bigun]

Just more inside the beltway smoke and Mirrors!  NO "Reform" involved at all!

[InHeavenThereIsNoBeer]

I am opposed to an income tax in principle. I am not impressed with the things I am hearing about the plan. 25% is way too much for the average worker to pay when they take no federal benefits.

The average worker will not be paying 25%, even when you factor in payroll taxes.  They may be in the 25% BRACKET, but that only means they pay 25% on the part of their income that is left after the standard deduction (assuming they don't itemize) on which they pay 0% and after the first tranche of taxable income on which they pay 10%.

[Right_in_Virginia]

Just more inside the beltway smoke and Mirrors!  NO "Reform" involved at all!

Well, they are proposing changes .... other than the dismantling of the IRS, what's missing in your opinion?

Thanks.

[Bigun]

Well, they are proposing changes .... other than the dismantling of the IRS, what's missing in your opinion?

Thanks.

What's missing is the elimination of the IRS and the ability of the little princes in Washington to manipulate our behavior via the tax code!  Nothing much otherwise!

[Right_in_Virginia]

What's missing is the elimination of the IRS and the ability of the little princes in Washington to manipulate our behavior via the tax code!  Nothing much otherwise!

Okay.  Thanks.

[aligncare]

Negotiations have just begun. This isn’t the final deal. Before I start jumping ugly I’d wait and watch to see how this shapes up.

[truth_seeker]

The average worker will not be paying 25%, even when you factor in payroll taxes.  They may be in the 25% BRACKET, but that only means they pay 25% on the part of their income that is left after the standard deduction (assuming they don't itemize) on which they pay 0% and after the first tranche of taxable income on which they pay 10%.

Nothing personal,     but

1. Many conservatives don't think their incomes should be taxed at a rate as high as 25 percent period.

2. Most people have no idea what a "tranche" is. The term only came into use regarding the devastating mortgage collapse, of 2008-2010.

I would advise NOT using the term in connection with this GOP tax overhaul

[cato potatoe]

No serious tax reform is going to make it through congress.  Every deduction they eliminate will touch some interest group, and they will cry bloody murder.  Furthermore, making the rates more progressive is the exact opposite of what we should be doing.  The biggest obstacle to cutting spending is the fact that half of the country has no skin in the game.

[Bigun]

The simple fact is that WE will never again be a truly FREE people for so long as we continue to abide the Marxist income tax and it's attendant IRS!

[Bigun]

No serious tax reform is going to make it through congress.  Every deduction they eliminate will touch some interest group, and they will cry bloody murder.  Furthermore, making the rates more progressive is the exact opposite of what we should be doing.  The biggest obstacle to cutting spending is the fact that half of the country has no skin in the game.

@cato potatoe

Well said and all too true!

[truth_seeker]

No serious tax reform is going to make it through congress.  Every deduction they eliminate will touch some interest group, and they will cry bloody murder.  Furthermore, making the rates more progressive is the exact opposite of what we should be doing.  The biggest obstacle to cutting spending is the fact that half of the country has no skin in the game.

Sure they have skin in the form of "earned income tax credits," which generate payments to them of taxes they did not pay.

[austingirl]

The average worker will not be paying 25%, even when you factor in payroll taxes.  They may be in the 25% BRACKET, but that only means they pay 25% on the part of their income that is left after the standard deduction (assuming they don't itemize) on which they pay 0% and after the first tranche of taxable income on which they pay 10%.

I realize that, but I think 25% on any part of am average working person's income is too much.

[Bigun]

Sure they have skin in the form of "earned income tax credits," which generate payments to them of taxes they did not pay.

As long as they stay on the plantation and vote as they are told!

[KingsX]

The DEVIL is in the details !!


For many people - especially single parents and seniors - doubling the basic standard deduction will NOT compensate for the GOP's plan to eliminate personal exemptions, eliminate the  extra senior standard deduction and increase the lowest tax rate from 10% to 12%.

This would be a tax INCREASE for many who are least able to afford it.

Republicans need to find a fix in their bag of tricks... or they are in trouble in 2018.

[KingsX]

Any minute Trump will be speaking about the GOP tax cuts for the wealthy...
and of course the stock market is going up... they love it.

[truth_seeker]

Any minute Trump will be speaking about the GOP tax cuts for the wealthy...
and of course the stock market is going up... they love it.

So you choose to call it "tax cuts for the wealthy?"

That is how the democrats will frame it.

[KingsX]

Trump just said the new GOP standard deduction will be  $12,000 single / $24,000 couple...
that is NOT doubling the current 2017 standard deduction of $6350 single / $12,700 couple
or the projected 2018 standard deduction which is $6500 single /  $ 13,000 couple

Trump failed to mention the GOP plan to eliminate personal exemptions and extra senior deduction.

[KingsX]

So you choose to call it "tax cuts for the wealthy?"

That is how the democrats will frame it.

That is exactly what it is... massive tax cuts for the wealthy and the middle-finger to lower income Americans.

Democrats have been saying that and now Republicans are making it a self-fulfilling prophecy.

I have voted GOP for decades. But this tax cut for the wealthy the GOP falsely calls a tax cut for everyone has made up my mind not to vote GOP in 2018.

[KingsX]

Trump just said the new GOP standard deduction will be  $12,000 single / $24,000 couple...
that is NOT doubling the current 2017 standard deduction of $6350 single / $12,700 couple
or the projected 2018 standard deduction which is $6500 single /  $ 13,000 couple

Trump failed to mention the GOP plan to eliminate personal exemptions and extra senior deduction.

Trump did not say whether or not  this arbitrary $12000/$24,000 standard deduction will the adjusted annually for inflation. Maybe it will be like Reagan's 1983 "tax cut" that turned out to be a new tax on Medicare based on a $25,000 income that was NOT set up to be adjusted for inflation and is now a burden to all seniors.