Gary Cohn: Typical US Family Earning $100,000 to Get $1,000 Tax Cut Under Trump Plan

[mystery-ak]

Thursday, 28 Sep 2017 03:29 PM



A typical U.S. family with two children earning $100,000 a year can expect a tax cut of $1,000 under President Donald Trump's proposed tax overhaul, White House economic adviser Gary Cohn said on Thursday.

Cohn also told reporters at the White House that the repeal of estate tax and alternative minimum tax would be immediate under the proposal.

http://www.newsmax.com/Newsfront/gary-cohn-trump-tax-cut/2017/09/28/id/816466/

[Concerned]

Unfortunately, during the same press briefing, Cohn failed to explain how this tax plan didn't benefit the President (President Trump stated it "was not good for" him.  This despite Cohn being asked about it three times.  It certainly seems as though the President would likely benefit from the top rate going down, eliminating the AMT, and eliminating the estate tax. 

[KingsX]

This year under current IRS rules a single senior would get his first $11,900 tax free [senior standard deduction plus one personal exemption [both eliminated under the proposed GOP tax plan] then pay a 10% tax rate.   Trump's tax plan would give him a $12,000 standard deduction [$100 more] but raise the tax rate to 12%.

Then what happens next year?  Under current IRS rules,   standard deductions and personal exemptions increase with inflation.   What happens to the GOP's proposed $12,000 single deduction?  Does it increase with inflation?  The devil is in the details.  Don't buy a pig in a poke.

[KingsX]

Unfortunately, during the same press briefing, Cohn failed to explain how this tax plan didn't benefit the President (President Trump stated it "was not good for" him.  This despite Cohn being asked about it three times.  It certainly seems as though the President would likely benefit from the top rate going down, eliminating the AMT, and eliminating the estate tax.

Trump still  has not made his tax documents public.

Last I heard the GOP had not yet revealed the income ranges for their three new tax rates.

Did Cohn release that info ??

[austingirl]

They are playing so coy with no indication of what the brackets are. No deductions, no 10% rate, no 15%, the threshold for the 25% brackets needs to be about 200K to give the middle class a 12% rate. The 12% bracket is going to be a tax increase for a lot of people in the 30K-50K area. I despise our rulers.

[RAT Patrol]

How about this tax plan:  REDUCE SPENDING

I do not understand the disconnect between taxes and spending.  That goes for everyone.  Well, the Democrats like both taxes and spending so long as the majority of the taxes are paid by Republicans.  The GOP lives in fantasy land where they don't have to balance anything.  They just have to grandstand for the next campaign, paying special attention to donors.  We are headed for bankruptcy.  In that case I guess we picked the right President after all.

[libertybele]

They are playing so coy with no indication of what the brackets are. No deductions, no 10% rate, no 15%, the threshold for the 25% brackets needs to be about 200K to give the middle class a 12% rate. The 12% bracket is going to be a tax increase for a lot of people in the 30K-50K area. I despise our rulers.

Agreed. On the surface and what has been made an issue front and center is the doubling of the standard deduction, which sounds great too many.  What they aren't realizing is that the amount over the standard deduction will be taxed for many at a higher rate.  That increases taxes; especially since many of the itemized deductions aren't allowed.  Secondly there are new tax rules for Social Security, IRA's, pensions and retirement. So it seems to me that they aren't giving tax breaks at all but instead are merely shuffling a few things around redistributing the tax burden predominately to seniors and those receiving SS and Medicare benefits AND raising the taxes on IRA and pension distributions.

[Concerned]

How about this tax plan:  REDUCE SPENDING

I do not understand the disconnect between taxes and spending.  That goes for everyone.  Well, the Democrats like both taxes and spending so long as the majority of the taxes are paid by Republicans.  The GOP lives in fantasy land where they don't have to balance anything.  They just have to grandstand for the next campaign, paying special attention to donors.  We are headed for bankruptcy.  In that case I guess we picked the right President after all.

@RAT Patrol

 

[ABX]

I'm waiting to see something official in writing on all this. Rush had a long 'here is what I was told by someone in the know' speech today that wasnt totally clear. For example, will someone in the current 33 bracket go down to the new 28 or up to the new 35?
They say these are cuts but they also say the top brackets (with s so I assume the top two brackets) wont benefit. But that means someone on the low end of the 33 bracket could see a 2 percent hike.

[mystery-ak]

I'm waiting to see something official in writing on all this. Rush had a long 'here is what I was told by someone in the know' speech today that wasnt totally clear. For example, will someone in the current 33 bracket go down to the new 28 or up to the new 35?
They say these are cuts but they also say the top brackets (with s so I assume the top two brackets) wont benefit. But that means someone on the low end of the 33 bracket could see a 2 percent hike.

Missed Rush today but here is what you are talking about

http://www.gopbriefingroom.com/index.php?topic=283337.new#new

[KingsX]

How about this tax plan:  REDUCE SPENDING

I do not understand the disconnect between taxes and spending.  That goes for everyone.  Well, the Democrats like both taxes and spending so long as the majority of the taxes are paid by Republicans.  The GOP lives in fantasy land where they don't have to balance anything.  They just have to grandstand for the next campaign, paying special attention to donors.  We are headed for bankruptcy.  In that case I guess we picked the right President after all.

After the Soviet Union fell,  Russia was [and still is] ruled by a rich oligarch elite
who bought factories and other state assets pennies on the dollar. Worker wages
decreased [many were not paid at all] while inflation increased. Food cost soared
and many people starved.

In other words,  destroying the Soviet Union made a lot of unscrupulous people
very rich and powerful,  while the Russian people suffered. 

Something similar could happen here.  I think this tax cut for the rich is the beginning.

[libertybele]

I'm waiting to see something official in writing on all this. Rush had a long 'here is what I was told by someone in the know' speech today that wasnt totally clear. For example, will someone in the current 33 bracket go down to the new 28 or up to the new 35?
They say these are cuts but they also say the top brackets (with s so I assume the top two brackets) wont benefit. But that means someone on the low end of the 33 bracket could see a 2 percent hike.

IMHO because of the increase in the standard deduction, I think most are going to move up a tax bracket and the tax code will be simplified eliminating many of the itemized deductions. Bottom line is the tax man is going to get his money one way or the other and those in Congress aren't going to vote on a new tax formula that won't benefit them.  I think it's safe to say that most of our Congressmen make a lot more than most of us.

[Mom MD]

I get so sick of the tax cut for the rich mantra.  The rich do not pay income tax because they do not work.  What people are calling the rich are the high income earners who are not rich and who pay most of the taxes.   The bottom 50% of earners pay little to no tax.  So if you want to cut taxes you need to do so for the people that actually pay tax, or the "rich"

[Bigun]

I get so sick of the tax cut for the rich mantra.  The rich do not pay income tax because they do not work.  What people are calling the rich are the high income earners who are not rich and who pay most of the taxes.   The bottom 50% of earners pay little to no tax.  So if you want to cut taxes you need to do so for the people that actually pay tax, or the "rich"

 

Absolutely right!

[RAT Patrol]

After the Soviet Union fell,  Russia was [and still is] ruled by a rich oligarch elite
who bought factories and other state assets pennies on the dollar. Worker wages
decreased [many were not paid at all] while inflation increased. Food cost soared
and many people starved.

In other words,  destroying the Soviet Union made a lot of unscrupulous people
very rich and powerful,  while the Russian people suffered. 

Something similar could happen here.  I think this tax cut for the rich is the beginning.

So you think the Soviet Union was better?  I don't.  They needed to dump that evil system no matter what the cost.  When an evil power has a grip on a nation, you can bet the remedy will be costly and take time.  If North Korea is ever able to dump the crazy man controlling them, bet on a long and costly transition....but don't look back longingly.  You might become salt.

Whatever corruption currently exists in Russia, and I am no expert, they can more easily hope for a future correction now than they could under the old system.  Time is not stagnant and political improvement never comes easily or quickly.  There is also ALWAYS a tendency to return to the old and familiar no matter how rotten.  Russia did not know how to live free.  Give them time.  Some generations must live for the benefit of their progeny.    It's that "give me liberty or give me death" and "pledge our lives, fortunes, sacred honor.." mentality.

Our country, unfortunately, has abandoned the principles we were given by our forefathers.  We will have to learn those lessons all over again.  More government is not the answer.  It never was.  Never will be.   Men are corrupt and cannot be trusted.  Oh what a lovely gift we had for awhile -- the Declaration of Independence; the Constitution; God given rights that cannot be taken away; limited and representative government; states' rights; a government of laws, not men.. etc.  Now we are like dogs fighting over the same trough, barking for more from our masters.

[KingsX]

I get so sick of the tax cut for the rich mantra.

A mantra billionaire Trump and his rich Wall Street and GOP cohorts have brought to fruition.

[KingsX]

So you think the Soviet Union was better?  I don't.

I hate Bolsheviks who destroyed Christian Russia. Their descendants have continued destroying Russia and the world.

But think carefully about what I posted.  Those same "Russian" oligarch billionaires [many of them are not ethnically Russian]  have now branched out from the former Soviet Union and now own and control many Western companies.  Many of them rub shoulders with Trump.

[Smokin Joe]

Not to be a nit picker, but is the typical US family earning $100,000?

[KingsX]

Not to be a nit picker, but is the typical US family earning $100,000?

I've never come near anything close to a $100,000 income
and I was able to save money and retire early.  But I live in
a less expensive part of the country [not a blue state.]

[Concerned]

Not to be a nit picker, but is the typical US family earning $100,000?

Median household income is about $59K.

https://www.usatoday.com/story/money/2017/09/12/household-incomes-rise-3-2-2016-2nd-straight-increase/655310001/

[RoosGirl]

Wow!  What an overhaul!  I'm so overwhelmed.   

[Bigun]

A mantra billionaire Trump and his rich Wall Street and GOP cohorts have brought to fruition.

No it isn't.  You are so FOS your eyes are brown.

[KingsX]

No it isn't.  You are so FOS your eyes are brown.

How adult of you.

[InHeavenThereIsNoBeer]

I get so sick of the tax cut for the rich mantra.  The rich do not pay income tax because they do not work.  What people are calling the rich are the high income earners who are not rich and who pay most of the taxes.   The bottom 50% of earners pay little to no tax.  So if you want to cut taxes you need to do so for the people that actually pay tax, or the "rich"

Yeah, but "tax cuts for the people who actually pay most of the taxes" just doesn't roll off the tongue. 

I'll never understand why someone who pays more than I do today, and will continue to do so after a tax cut, is getting some sort of special deal that needs to be eliminated.  When I'm ready to start paying as much as you do I'll have earned the right to discuss your "fair share".

[Smokin Joe]

Yeah, but "tax cuts for the people who actually pay most of the taxes" just doesn't roll off the tongue. 

I'll never understand why someone who pays more than I do today, and will continue to do so after a tax cut, is getting some sort of special deal that needs to be eliminated.  When I'm ready to start paying as much as you do I'll have earned the right to discuss your "fair share".

During the boom I was making between 200K and 250K a year, which is pretty good, but being self employed, meant I ended up putting close to half a million in the Obama Administration's coffers even as they were removing my health insurance and fighting the oil industry tooth and nail. Those were good years, but I want my money back. (I know, we can all dream). It just seems every time they monkey with the tax code, my end of the stick gets nastier.