Skip to comments.Million dollar bracket in the works for GOP tax plan
Posted on 10/23/2017 6:45:46 AM PDT by SkyPilot
The Republicans on the House Ways and Means Committee engaged in a high-pressure, high-stakes tax policy rewrite are currently exploring not cutting the income tax rate for people who earn $1 million or more per year.
Right now, the marginal tax rate for anyone who makes $418,000 or more per year is 39.6 percent. The Republicans' opening gambit secretly negotiated for months, and endorsed by Trump would have cut the highest tax rate to 35 percent. But now, House Republicans' thinking has changed. Under their current thinking, people who earn between $418,000 and $999,999 will be in a lower tax bracket. But those earning $1 million or more will not.
Keep reading 273 words
Opting to keep taxing million-dollar-earners at the current 39.6 percent-rate will help stem the deficit increase from tax cuts for corporations and the middle class.
Caveat: The million dollar bracket plans haven't been finalized and could change this week, as committee Republicans finalize their tax bill during meetings on Tuesday and Wednesday.
Potential blowback: If the Committee Republicans ultimately decide not to cut the income tax rate for million-dollar-earners, much of the Republican donor class and Reaganomics community (including anti-tax activist Grover Norquist) will feel betrayed.
"I understand compromise, but why compromise with the sin of envy?" Norquist told us. "This isn't the dumbest idea I have ever heard of. But it is in the top 20."
Norquist argues this won't placate Democrats who inevitably will charge that Trump's tax overhaul is just designed to help the rich but will alienate conservatives.
(Excerpt) Read more at axios.com ...
This tax bill is already ugly. I read that because the propose eliminating all charitable deductions unless you give quite a bit of money (in the 5 figures), they believe that giving to charities will plummet by at least $13 Billion. Eliminating other deductions are going to raise the taxes for millions of middle class families.
It will be interesting to see if the GOP in the House has the votes to pass this. It must also get at least 51 House votes in Conference.
So Trump and others want to continue to punish the “rich,” in other words, the successful businessmen and businesswomen who work hard, put in long hours, create all the jobs, and make the economy work. Yeah, that will grow the economy...NOT!
All this does is play into the hands of the commie democraps.
Reagan lowered the top rate down to 28%, a rate which you benefited from yourself, Mr. President.
Another thing....tax cuts do not increase the deficit, it’s runaway spending that accomplishes that dubious goal.
When Reagan took office in 1981, the IRS was taking in $500 billion per year. When he left office eight years later, the IRS was taking in $950 billion per year. And the democrats controlled the House the entire eight years.
Trump is right about wealthy and tax rate. Lower capital gains and dividend rate with lower corporate rate will keep my wealthy clients away from higher tax rates.
I guess the GOP has completely given up on the idea that small businesses generate jobs and are the engine of economic growth, and that everyone who earns $1 million in any given year is a hedge fund billionaire or corporate fat cat who earns $1 million every year and really doesn’t need it.
Truth is he's very bad news and people would do well to avoid him.
Everyone else must take a back seat to that. Charities. Middle class homeowners in high tax states. Million dollar earners. People who deduct mortgage interest.
All those are being thrown to the wolves, so that the corporate rate gets slashed.
I do agree that doing so will grow the economy, but because they want to "pay for" the decreased tax revenue, they are raising taxes significantly on millions of Americans.
The irony of this whole debate is most rich people live in Democratic districts in Democratic states.
In addition, they can hire tax professionals to move their money around to avoid or defer taxes as they wish.
The Republicans are the “stupid party” if they waste time or political capital on this issue.
Most NFL-ers fall into this bracket. He he!
Yeah, stick it to the rich. :-)
Maybe that will satisfy the class-envy rich-haters - some who frequent this site.
Or maybe it won’t.
No, the plan calls for a cap at 25% on passthrough corp income, so small business won’t be affected. That’s why Trump says people don’t care much about it.
I have my turbo tax ready to recalculate my 2016 taxes with the new tax rates when they are posted. I will compare with the old rate schedule. Then I will make my decision.
The look in Ryan’s eyes is one of defeat; yet, no longer possessing the air of arrogant defiance which marked ValJar’s in that famous group photo of White House staffers in the wake of President Trump’s election.
Members of Congress hide everything they make over $418,000.
“I read that “
That’s the problem: You keep reading liberal trash and believing in it.
It was also posted here on FR by other Freepers. If you have a link that discounts it, please post it. I am all ears.
I don’t care about the million dollar bracket. I’m more concerned with the other brackets and just how much my taxes are going to go up.
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