We should tax poverty. Drive all of the poor into tax shelters in the Cayman islands.
Be nice if we could see the graph.
“To partly offset that lost revenue”
This line of thinking is EXACTLY the problem. They shouldn’t look to offset the lost revenue. They should SPEND LESS.
The corporate tax rate should be zero.
In other words, make every corporation the equivalent of a Sub-Chapter S.
Then you can tax the shareholders to raise a more-or-less equivalent amount of money, while at the same time boosting economic efficiency.
Alternatively, you could get approximately the same good results if you keep the corporate tax rate where it is but allow corporations to deduct dividends as a current expense.
Cutting the corporate tax is like a flat-tax cut for everyone as consumers pay the tax since it’s a business expense.
Ping
Bill text for the Tax Cuts and Jobs Act is here: https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf …
Section-by-section summary is here:
https://waysandmeansforms.house.gov/uploadedfiles/tax_cuts_and_jobs_act_section_by_section.pdf …
Here in CT, using my figures from 2017, my tax goes from $114 to $1460.
Thanks Congress.
On the other hand, it’s clearly designed to screw the blue states, which I love.
Let me explain why this is a collosally bad idea. Not the corporate tax cut (I’m fine with that) but the wholesale war on itemized deductions.
Under the current system the few defenses left to taxpayers include the mortgage interest, charitable and state tax deductions. That’s it, and you pay the top applicable rate on the rest of your income.
If GOP limits these deductions they will be gone for good, you can count on that, as the post-Rosty Dems have never enacted an individual tax break for middle class when they controlled Congress. Will never happen.
So now fast forward to 2021 (or 2025) when Trump is gone and you have Barbara Lee as Speaker and Chucky Schumer as Senate Leader. Congress votes to raise personal income tax rates back to Obama era levels (or worse, to pay for surging entitlement programs). Now where do you hide? Nowhere, because all your tax breaks are gone.
So that’s why we need to tell GOP congress that anybody who votes to remove or limit personal deductions will get a one-way ticket home in 2018.
Unless my rate goes down then they are just rearranging the deck chairs.
Lower taxes in one area yet raise in another?
Just lower taxes. Cut spending. Simple. The members of congress are all used car salesman.