Posted on 09/27/2017 2:58:13 PM PDT by SeekAndFind
Whatever gets through had better not be temporary, like the Bush “tax cuts.”
So, hard working businessmen and businesswomen who become “wealthy” in the future due to their hard work and innovation will continue to be punished?
A top rate of 35% or higher?
Donald Trump benefited from the Reagan era top rate of 28%.
Why punish the successful?
At least bring back income averaging!
Please explain to me why state and local taxes should be deducted from federal taxes. Is there a reason that people in high tax states should pay less in federal taxes than people in low tax states?
Then that is self-defeatist to our goal.
What that amounts to, is paying for the tax cut. It’s a contradictory thing to do.
We want more money in the private sector to spur new business, new jobs, and a resulting broadening tax base. This is simplified, but it’s does touch on reality.
Here is an example that is not intended to be “to scale” at all. It’s merely and easy to understand concept.
If we cut taxes on the middle class to increase the tax base by 100% (which is only attainable if we do increase that tax base), what good does it do to decrease the tax base by a similar amount? (which is only attainable if we raise taxes on the rich, small businesses, or Corporations, which causes them to downsize to pay for it?)
Taxes on the Middle class go down by $5 trillion over five years. Taxes go up by $5 trillion for the rich, small businesses, or Corporations over five years.
What is the net increase in private sector funds to spur the economy, expand the tax base?
$ 0.00
If you have to pay $500 dollars on your income at the state level, why should the federal government be able to tax you on that $500 dollars?
If you claimed $25,000 dollars of income in the state, and the state takes $500 dollars, you should only have to claim $24,500 dollars of income on your federal return.
This may not address the mechanism with precision, but it makes it clear what the concept is.
You should not be taxed on money you never received.
Perhaps I should have termed it like this.
You should not be taxed on money you were unable to keep.
Agree totally. Same for PA, especially middle class earners around Philadelphia, who pay astronomical property taxes.
Thanks Defiant.
I appreciate the example.
But the personal exemption, which is currently $4,050 per person, would now be included in the standard deduction, so the actual increase isn't as big as it appears.
If they only offer the standard deduction and no longer give personal exemptions, anybody with more than a couple children will be hit negatively (if I'm reading it right.)
$24000 standard deduction (under the new plan that's it, no personal) versus $12700 standard deduction plus 4 children and 2 adults (approx $24000) is a $36,700 deduction.) Even 3 children leaves your deduction lower than the way it is now.
An empty nester would do okay, $24000 versus $12,700 standard plus person exemption $8100...would save us some money
If I'm misinterpreting the plan, then forget this post :)
"Filing a return allows you to take advantage of things like the earned income tax credit, a refundable credit for lower-income earners."
They say this almost joyfully.
"An additional top rate may apply to the highest-income taxpayers to ensure that the reformed tax code is at least as progressive as the existing tax code..."
So, they defer to a preferred standard of the existing Obama-crafted tax code?!!!!
Wrong, the focus shouldn't be on "growing the economy" because then you get overly aggressive meddling where it doesn't constitutionally belong.
Simply maintain a hands-off, freedom-based system of government, and everything else will take care of itself.
For the first time, I’m going to reach the level of medical expenses to be able to deduct (far over) this year. If they take away that deduction, I’m going to be kinda angry.
“I’m seeing single and married. I’d like to see tables with 3 children etc.”
There are no tables for married with 3 children. Not in 2016 and not with the new plan.
Income, about $65K, all qualified dividends. State and local tax deductions, about $14K. That’ll do it.
I will have to think of a new scheme for evading Federal income tax.
The personal exemption will be nixed under this plan so you can drop the $8100 from your calculation.
Pass it. The swamp will eventually turn it into the swamp creature again in 10 years.
Passing Trumps plan, at least it will set them back 10 years.
This may sound UNconservative of me to say, but I think that we should have the situation when the income tax was first implemented, with the VERY rich being the only ones to pay. The vast majority of people should be exempt, if this is the game that is being played, and only the uber rich making over $300k a year should be taxed. This would supercharge the middle class and the economy would take off in a flash.
After all, aren’t most extremely rich people ardent leftists?
It’s ALL about where they set the income thresholds for the tax brackets.
That’s the whole enchilada.
But I would bet this: If you earn over $100k, your taxes are going UP! If you earn over $200K they are going up A LOT!
And if you’re under, they are likely going down.
Shrinking the number of people invested in the system.
Then milking them dry.
Cut your property taxes and quit blaming the Fed.
Taxes are hate.
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