Psst.... Trump's Tax Plan

The Market-Ticker ^ | August 10, 2015 | Karl Denninger

[RightFighter]

Actually, if you earn less than $30,000 per year, you’d pay somewhere under $300 per year in taxes, no?

[RightFighter]

I was writing up the same kind of reply, but I think that it must be a marginal system where the rate increases for income above each tier. If that’s NOT the way it is, then it’s stupid.

[KGeorge]

I don’t recall the specifics, but Newt was talking about tax return fitting on a postcard in 2012.

[DoodleDawg]

Say your middle class, making 100000 bucks a year. If you get paid JUST ONE MORE DOLLAR, earning that extra dollar is going to COST YOU 5 GRAND IN TAXES. So, you would not even consider a 5000 dollar a year raise a real raise, as it would go ENTIRELY towards your additional taxes.

No, if you're making $100,001 dollars your tax bill will be ($30,000 * 1%) + ($70,000 * 5%) + ($1 * 10%) or $3800.10.

[dfwgator]

I don’t recall the specifics, but Newt was talking about tax return fitting on a postcard in 2012.

The Democrats want to do the same thing.

1. How much did you earn this year ____________

2. Send it in.

[KGeorge]

lol Oh hell no. Like I would trust the democrats to do anything. They want to tax people as much as they can get away with. And then some.

[mmichaels1970]

From what I’ve read, I think the EIC would remain. So I wonder if those on the lower end would still end up with a credit when they file. I think he also wants to impose a one-time tax of something like 15% on millionaires to go towards the national debt, payable over 10 years.

[TNMOUTH]

Naturally, Trump will abolish the death tax, the marriage penalty, capitol gains taxes...and the IRS, right? Right?

Wait, what?

[mmichaels1970]

Yes. Yes. Yes. And No from what I read.

[Kit cat]

30,000 and below would pay 1% !!!!!!

[Kit cat]

I would prefer a consumption tax where EVERYONE has skin in the game but this sounds OK also!!!!!!

[Dead Corpse]

Accountants would still be needed. They just wouldn’t have to deal so much with the IRS’ BS anymore...

In fact, freed from the idiocy, We the People could go back to starting new businesses and hiring said accountants to help us keep our books straight.

I’d love to start a gun range with a full service pro-shop. Invite in 3-Gun Nation, Appleseed, IDPA/IPSC, etc...

Not feasible with the tax and regulatory morass I’d need to wade through just to break ground.

The NRST goes a long way to reigning that in and I’d still need an accountant to help me with my books.

[ConservativeInPA]

A 22% or so tax on the purchase of a home, new car? Adding that amount to the price of big ticket items would be a deal killer IMO.

I think the price of new homes and cars would be lower since the businesses building new homes and cars are no longer taxed and they no longer have to pass the cost of taxes, tax lawyers, tax accountants, record keeping, lobbying, etc. to consumers. I'm not sure how that plays out.

I should add that another problem I have with the FAIR Tax is the tax rate. It is too high. However, that is a function of government spending. Cut government, cut spending and grow the economy then the tax rate will decrease.

The one thing I have read little about the FAIR Tax is the potential impact of businesses moving to the US. Without business taxes, America would have the lowest (zero) tax rate in the world. Does this cause the influx of businesses that manufacture things and create jobs?

[Lopeover]

I like it!!!

[11th Commandment]

The only flaw in the FAIR tax from my perspective is the rebate.

Good Point, but let me bring up this point. I support the rebate replacing some 2,000+ poverty aid programs. I don't think the book mentioned this trade-off.

[JimRed]

Until there is a constitutional amendment limiting the amount of money Congress can spend, they will continue to pile up the debt.

Since they mostly ignore the second amendment among others, what make us think that they would abide by a new one?

[DoodleDawg]

I would prefer a consumption tax where EVERYONE has skin in the game but this sounds OK also!!!!!!

How do you sell that to the majority of Americans whose taxes you're going to raise?

[ConservativeInPA]

If you made $30,001 you would pay $300.15 in taxes. But I am with you on a flat tax. However, I perfer a flat tax based on consumption, not income. That means zero forms to fill out for individuals. Never a fear of proving yourself innocent in front of the IRS.

[Greetings_Puny_Humans]

That’s 300 dollars if you make 30,000. That’s nothing. I’ll take a bigger hit just from Obamacare alone.

[Go_Raiders]

I think your analysis is slightly off:

Trump’s proposal is:

30000 300
30001 300.05
100000 5000
100001 5000.10
1000000 100000
1000001 100000.15

You only pay the additional rates on the earned income within each additional bracket. That’s the way the current system works and that’s why Trump’s plan doesn’t have to come out and say it. It is assumed that the reader is not beyond stupid.