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Trump's Tax Plan

Discussion in 'Politics Forum (Local/National/World)' started by searcher, Sep 27, 2017.



  1. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Trump's dramatic tax reform plan revealed: President wants just three brackets and zero tax on couples' first $24,000 – and a massive slash to corporate rates
    • President Donald Trump and GOP leaders will announce a jointly agreed upon framework for tax reform that they say slashes rates for the middle class
    • Trump has said it will be the 'largest tax cut' in American history. He promotes the plan Wednesday in Indianapolis, Indiana
    • Plan proposes three rates of 12 percent, 25 percent and 35 percent - but also abolishes state tax deduction
    • Corporations will see their rates drop from 35 percent to 20 percent
    • White House is not dictating what income levels will qualify for each bracket


    Read more: http://www.dailymail.co.uk/news/article-4925588/Trump-lifts-curtain-reforms.html#ixzz4ttjTIi7n
    Follow us: @MailOnline on Twitter | DailyMail on Facebook
     
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  2. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    ^updated^ and mayhem like this.
  3. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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  4. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    Let's not kid ourselves... with $20 TRILLION in debt, our "paying taxes" means absolutely nothing.

    They'll just borrow from the FED to pay it....
     
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  5. mayhem

    mayhem Silver Member Silver Miner Site Supporter

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    Until they can't. But that won't be until our grand kids are penny less and we are dirt. That's why my son is packing up his business and leaving the country. He's not doing it to make more for himself, for that matter he will make less for a while. He just doesn't want his grandkids to be stuck with all this debt.
    But as he and I discussed nothing is a sure thing, but soon you won't be able to leave so he's going.
     
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  6. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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  7. southfork

    southfork Mother Lode Found Mother Lode

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    Looks like corporate america is the big winner, a 40% plus tax break while raising joe 6pks rate from 10 to 12 and increasing deduction is a non starter for me, corporations have untold billions , this dont do squat for you or me
     
  8. southfork

    southfork Mother Lode Found Mother Lode

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  9. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    Blood in the streets... Probably could purchase the whole island for a song and put your own government in...
     
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  10. southfork

    southfork Mother Lode Found Mother Lode

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    Hedge funds in NY bought tons of PR bonds a few years ago and then lobbied for a bailout, they lost their asses when the bailout didnt happen, given the amount of people living off .gov , welfare and in abject poverty I dont ever see PR being worth anything
     
  11. glockngold

    glockngold Gold Member Gold Chaser

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    Snork! Tough bein a socialist..... whistle:
    California 13.3%
    Oregon 9.9%
    Minnesota 9.85%
    Iowa 8.98%
    New Jersey 8.97%
    Vermont 8.95%
    District of Columbia 8.95%
    New York 8.82%
     
  12. southfork

    southfork Mother Lode Found Mother Lode

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    End result joe 6pk gets large tax increase, Ironic I lived in Jersey when they passed the state income tax to lower property taxes, yet they continue to increase over 6% yearly, well over the fake inflation index, taxes and homeowners would cost me know more than the mortgage on either of the houses I used to own.
     
    Last edited: Sep 27, 2017
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  13. mayhem

    mayhem Silver Member Silver Miner Site Supporter

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    Been that way as far back as I can remember, and that's a while now.
     
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  14. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    How President Trump's tax plan affects you 2 / 25
    [​IMG]
    USA TODAY

    Herb Jackson
    13 mins ago



    Working poor people could owe no income tax, filing a return could get much simpler, and there would even be a new credit for caring for elderly relatives under a tax "framework" being proposed Wednesday by President Trump and Republican leaders in Congress.

    The plan cuts the top corporate tax rate dramatically and creates a new top rate for small businesses that is lower than the top rate for individuals.



    It also eliminates two taxes paid entirely by the rich, while taking away a deduction for state and local taxes that is used most heavily in some of the most wealthy, and Democrat-dominated, states.

    Exactly how many other deductions and credits disappear to help pay for it all, and how much gets added to the deficit or must be offset with other budget cuts, may not be worked out for a while — even though Republicans are eager to move taxes to the front burner after another defeat this week on revamping health insurance.

    Read more:

    Trump plans to enlist grassroots and Dems to sell tax plan he will call biggest in history

    Trump pitches tax reform to Main Street, twists Democratic arms

    Here are 5 reasons Trump and Congress are struggling with tax reform

    As liberal groups decry a giveaway to those at the top, Trump will sell the plan as a boost for working families, starting with a rally in Indiana on Wednesday afternoon. Interest groups are also gearing up ads to sell the plan on television, especially in districts where key senators and House members live.

    The goal is to adopt a new tax code by the end of the year, but that's also when business such as setting the 2018 budget that Congress was supposed to tackle this month but postponed is supposed to be completed. So the odds of the plan being enacted are still uncertain.

    Here's a look at who benefits and loses under the plan and what still needs to be worked out, based on a plan distributed to House Republicans at a retreat away from Capitol Hill on Wednesday morning,

    Fewer brackets, new rates
    The seven individual income tax brackets in place now, which range from 10% to 39.6%, would be replaced by 12%, 25% and 35%. So at a minimum, those making the most would see a 4.6% cut, or $46,000 on $1 million in income.

    Congress may, however, add a bracket higher than 35% if it needs to ensure the plan "does not shift the tax burden from high-income to lower- and middle-income taxpayers," the plan said.

    Income levels for each tax rate are to be determined, so it's not possible at this point to determine how individual taxpayers would be affected.

    The proposed bottom rate of 12% is higher than the 10% the White House said it was seeking in a one-page list of goals for tax reform released in April. But people paying 10% now may not owe any tax under the new plan.

    That's because the plan would nearly double the standard deduction, the amount that's subtracted from incomes before the tax rate is applied. The deduction would grow from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples.

    Some of that increase, however, would be offset by the elimination of personal exemptions for a taxpayer and spouse. In 2017, those exemptions were worth $4,050, meaning a taxpayer and spouse could reduce their income by $9,100 before calculating how much tax was owed.

    House leaders also have said the plan would simplify the tax code so much that most people would be able to file their returns on a postcard.

    Other credits and deductions unclear
    The goal of tax reform was to eliminate the deductions and credits that benefit disparate groups and use the savings to lower rates overall. How much of that would happen remains unclear.

    The plan calls for increasing the child care tax credit, currently $1,000 per child, depending on the parents' income. It also would remove a "marriage penalty" that allows two single parents making up to $75,000 each, or $150,000 combined, to get the full credit, but begins to shrink the credit for married couples when their incomes exceed $110,000.

    A new credit of $500 would also be created for non-child dependents, such as an elderly relative.

    Municipal bond interest would still be tax-free, and tax incentives would remain, with changes "to improve efficiency and effectiveness," for education and saving for retirement. The Earned Income Tax Credit, designed to reward poor people who work instead of receiving welfare, would also continue, though changes are also possible.

    State/local tax deduction gone
    Taxpayers would no longer be able to deduct what they pay in state or local income or property taxes, a deduction that helps offset high tax rates in such states as California, Connecticut, New Jersey and New York.

    Estimates have said eliminating the break would offset more than $1 trillion in tax cuts elsewhere over the coming decade, but municipal and state officials and members of Congress, including Republicans from heavily affected states, have have been trying to pressure their leaders to leave the tax break in place.

    "State policies are putting a huge amount of tax burdens on our local taxpayers," said Rep. Tom Reed, a New York Republican who serves on the Ways and Means Committee.

    "It’s tough to advocate when you’ve got other states that come in and say, you know, ‘Why are we subsidizing you?’ And I always make the comment that we’re donor states,'" Reed said, referring to studies showing his state pays more in federal taxes than it receives back in federal programs.

    The tax plan also calls for eliminating most other tax deductions but does not specify them. Common deductions that could be affected include those for medical costs, job expenses, having a home office, or teachers paying for school supplies.

    Mortgage, charity deductions stay, but ...
    Popular deductions for mortgage interest and charitable contributions would continue. But like the current system that requires a choice between the standard deduction or itemizing, those expenses would only be deductible if they exceed the increased standard deduction amounts above.

    The National Association of Realtors argues that having a higher standard deduction could make home ownership less valuable in comparison to renting. And that, they warn, could reduce what someone would be willing to pay for a home and therefore potentially lower the value of existing homes.

    The association also did a study of an early version of the plan this year that combined the change in the standard deduction with the loss of the deduction for local property taxes, and it said average homeowners making $50,000 to $200,000 would end up paying more in taxes.

    Big corporate rate cut
    Corporations would see their top tax rate drop from 35% to 20%, which is higher than the 15% Trump wanted, but comparable to or lower than other major industrial nations.

    The tax code would begin to transition from a system that taxes American companies based on worldwide profits to a territorial system based on domestic profits alone. Companies with cash held by overseas subsidiaries — one estimate put the amount at $2.3 trillion — would be encouraged to bring it back to the United States through a temporary low tax rate, which was not immediately identified.

    The plan would also eliminate the corporate Alternative Minimum Tax, which seeks to prevent companies from using credits and other provisions to lower their tax rates too much.

    Trump has said the corporate rate cut would spur job creation and lead companies that had moved operations offshore to return. Others have said it would benefit primarily stockholders. The White House has said that would include pension funds for police and teachers and other public employees.

    The plan would put new limits on the ability of companies to write off the cost of interest on money they borrow, but it would, for five years, allow for "full expensing." This means the cost of assets such as trucks or equipment bought after Wednesday for a business could be written off immediately, rather than amortized over a number of years, a change that supporters believe will spur investment in growing businesses.

    Business deductions for research and development and for low-income housing would be retained, but others could be eliminated.

    Small-business owners who file their taxes on their individual returns, rather than on corporate returns, would see a new top rate of 25%. For those whose incomes would otherwise put them in the 35% individual bracket, this would be a tax cut that arguably could be used to expand their companies.

    Taxes on wealthy eliminated
    The plan eliminates the individual Alternative Minimum Tax, which is designed to prevent people from avoiding tax entirely through deductions and credits and overwhelmingly is paid by the rich.

    In 2014, 4.1 million of the 4.2 million people who paid AMT made more than $100,000 and the tax they paid totaled nearly $28 billion, according to IRS data.

    The plan also eliminates the estate tax, which is charged only on estates worth about $5.5 million or more. Supporters of eliminating this tax say it can force family-owned businesses to be broken up and sold to pay taxes, affecting workers' jobs.

    Cost TBD
    Trump has said he wants the tax cut to be the largest in history, but how much it will cost may take a while to determine and could be in dispute long after that.

    This is both because key details must be worked out, but also because members of Congress want to use a different way to calculate costs that takes into account anticipated economic growth resulting from tax cuts.

    Step 1 is for the House and Senate to agree on a budget resolution. Work on that is supposed to begin in the Senate next week, but the two chambers do not have agreement on what would be included, and it is possible each house adopts a different budget and a conference committee would have to hash out the differences.

    The extent to which Republicans who dominate both houses are willing to increase the deficit to provide tax cuts, or insist on budget cuts elsewhere, will determine how quickly action takes place.

    Liberal groups have warned that the cuts to federal revenue would be so deep Congress would ultimately have to look to cut popular programs such as Social Security and Medicare.

    Once a budget is adopted, the tax-writing committees can begin filling in the details on actual legislation. The budget would also set rules the Senate could use to prevent a filibuster, which would require 60 votes to break, on the bill.

    Contributing: Maureen Groppe

    http://www.msn.com/en-us/news/polit...n-affects-you/ar-AAsx1W7?li=BBnb7Kz&ocid=iehp
     
  15. southfork

    southfork Mother Lode Found Mother Lode

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    This plan is truly for the rich only.

     
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  16. Oldmansmith

    Oldmansmith Midas Member Midas Member

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    I think a 40% cut in Corporate tax RATES would be GREAT - if the big boys actually paid any taxes. The tax code is so full of handouts and loopholes that many multinational Corps pay ZERO right now. -40% of ZERO is still ZERO.

    They could cut the crap out of the tax rate and end up with more in taxes if they got rid of all the bullshit.
     
  17. hammerhead

    hammerhead Not just a screen name Gold Chaser

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    I used to get close to 5 figure refunds when I was poor (er) and had kids in college. Tell me something isn't wrong.
     
  18. Oldmansmith

    Oldmansmith Midas Member Midas Member

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    Agreed, all wrong, but nobody currently in power has any interest in fixing it.
     
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  19. hammerhead

    hammerhead Not just a screen name Gold Chaser

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    It's not an income problem that the gooberment has.
     
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  20. Mujahideen

    Mujahideen Black Member Midas Member

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    NYC billionaire Trump proposes cuts for rich and increases for the middle class... why am I not surprised?
     
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  21. andial

    andial Sir Midas Member Site Supporter ++

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    IMG_0746.JPG I like it.
     
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  22. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Eliminating property tax deductions won't fly. It would upset the markets too much. Eliminate the deductions for state income taxes would be more fair.
     
  23. Usury

    Usury Gold Chaser Platinum Bling

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    Define "rich".
     
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  24. mayhem

    mayhem Silver Member Silver Miner Site Supporter

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    This is the big one for most working couples. My daughter stands to loose 14,000 deduction for a 400k house + the state income tax, a figure she has never shared with me. But I do know her and my SIL only make 180k combined before any deductions. She happens to live in CT. and at age 48 really can't start over somewhere else, maybe in five years when she get's her 20 yr. in. A lot of folks fall into this category.

    The real problem is the Corps who claim offshore headquarters and never bring the profits into the states, who get away with murder. Does anyone think that lowering the Corp tax is going to bring that money home? If ya do, you are "napping with Jeffie".

    While I personally haven't given a lot of thought to taxes in the last 20 years, a VAT tax of some sort is probably the most fair. You only pay tax on what you spend. That would reward saving instead of spending. But there lies the rub. They need you to spend, and spend every dang nickle you earn or the whole thing goes poof.
     
  25. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    They probably owe their souls to certain businesses.
     
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  26. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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  27. gliddenralston

    gliddenralston Gold Member Gold Chaser

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    One of the biggest winners in this tax reform...Donald Trump !...who'd a guessed?
     
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  28. hammerhead

    hammerhead Not just a screen name Gold Chaser

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    Income tax does punish the workers. Seems to have been designed that way. The reason companies get breaks is so it stimulates production. Same holds true for self employed.
     
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  29. Joe King

    Joe King Gold Member Gold Chaser

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    The "rich" are effectively the only ones paying now. Those making less than $47,300/year are for the most part getting a free ride, while those making >$47,300 collectively pay 103% of the current income tax burden.


    So to all those saying the little guy is getting screwed over, what percent of the tax burden would you consider to be fair? Should those making >47,300/year be charged 150% of the tax burden? 200%? 1000%? How much is considered to be "fair"?

    When it comes to taxes, I always hear, "soak the rich!" but I never hear just how much of a soaking they should get. Seems to me they are already dripping wet.

    Tax Share.PNG





    As it should be. Taxes are for people. All a corporation can do is pass the cost of taxes to someone else. Same as they do all their other costs of production.

    When we say that corps should pay more taxes, what we are really saying is that we want fewer jobs at less pay, more products of inferior quality, and we'd like for those corps to move overseas in pursuit of lower costs.

    None of those things help American workers or consumers.
    What helps us, is strong businesses that can be profitable here while employing Americans. If they are being soaked by uncle sugar, that won't happen.



    A VAT would be the least fair. It's nothing more than a new breed of sales tax, but one that the gov can collect on prior to the merchandise being sold. Ie: they get to tax all the stuff sitting in warehouses that people haven't bought yet, while still maintaining the sales tax.

    The only "fair" taxation is taxation by apportionment.
    ...but that limits gov more than those in gov would like.




    Anyone who advocates for small gov, also advocates for apportioned taxes. Can't have one without the other.
     
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  30. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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  31. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Will Trump's tax plan deliver the goods on jobs?
    RT America



    Published on Sep 27, 2017
    President Trump has released his proposed tax reform plan, which includes lowering the corporate tax rate, providing benefits for married couples, and reducing the number of tax brackets. Ed Schultz breaks down what you need to know, talking to Leo Gerard, international president of the United Steelworkers, as well as Florida Congressman Alan Grayson (D-Florida ) and former Congressman Bob Barr (R-Georgia).
     
  32. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Trump prepares to appoint new IRS chief to run agency that's auditing his tax returns
    • IRS Commissioner John Koskinen’s term expires on Nov. 12
    • President Donald Trump is expected to name a different successor
    • Trump and the White House have said he has currently under audit
    • He has cited the audit as a reason not to release his tax returns
    • Republicans have been calling on Trump to get rid of Koskinen
    • The agency is now reportedly sharing information with Robert Mueller's team
    • 'He should not keep him on'


    Read more: http://www.dailymail.co.uk/news/article-4930656/Trump-prepares-appoint-new-chief-IRS-amid-audit.html#ixzz4u0DYRNfZ
    Follow us: @MailOnline on Twitter | DailyMail on Facebook
     
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  33. Thecrensh

    Thecrensh Gold Member Gold Chaser

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    meet the new boss, same as the old boss.
     
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  34. Usury

    Usury Gold Chaser Platinum Bling

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    Well said Joe. Another factor is EVEN IF you buy into the socialist mantra that those over $X are rich and should be paying all the taxes, then you better watch out for TPTB with globalist agendas. Cause even the poorest among us are insanely rich with a much higher standard of living compared to many places in the world. How about the sub-continent Africans start calling on J6P here as rich and spoiled and needs to be taxed at 50-90% to subsidize their meager existence. After all, if things are going to be "fair", right?
     
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  35. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Working Families Lose and Donald Trump Wins in GOP Tax Reform 15 / 25
    [​IMG]
    U.S. News & World Report

    Frank Clemente
    8 hrs ago

    Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

    "It's not good for me, believe me." That's what President Donald Trump said Wednesday in Indiana about the new Republican tax plan, and you shouldn't believe him. It's a huge tax giveaway to the wealthy and corporations, and few people will benefit more than Donald Trump.

    Since Trump refuses to release his tax returns, in defiance of 40 years of precedent, we can't know exactly how much he'll gain from the proposed GOP tax plan. But we know enough to highlight the biggest examples of self-dealing by the president.


    The richest gift he hopes to give himself comes from cutting what he pays in taxes by more than one-third on income from the 500 separate business entities that together make up the Trump Organization. These partnerships and other so-called "pass-through" entities don't pay corporate taxes, but instead pass through any profits and losses to the owners (principally or exclusively Trump). Trump pays any tax due at individual rates on his personal return. He would reduce the top tax rate on this kind of income from 39.6 percent to just 25 percent.

    This is the so-called "small business" tax cut Trump is trumpeting. But that's a sham. It's really just a tax handout to hedge fund managers, Wall Street lawyers, real estate magnates like Trump and other high-earners. Because 96 percent of real small business owners already pay taxes at 25 percent or less, they get no benefit from the rate cut. To emphasize, only 4 percent of business owners will see any benefit from this so-called "small business" tax cut. The big winners are high-rollers like Trump who now pay the top rate. Far from a "small business" tax cut, this "pass-through" tax cut has been rightly dubbed "The Trump Loophole."

    All that Main Street businesses will get from this handout to millionaires are the crippling reductions in public services – such as street repairs and small business loans – that would come from losing between $390-$660 billion in federal tax revenue over 10 years.

    Another change Trump is trying to slip into the tax code greatly to his benefit is elimination of the alternative minimum tax – a safeguard against the wealthy using excessive deductions, credits and other subtractions to whittle their tax bill down to little or nothing.

    The one tax return of Trump's that's been leaked to the public shows the alternative minimum tax doing its job. If the tax had not been in place, Trump would have paid federal taxes on his $150 million in income at a measly 4 percent rate – less than most low-income workers pay. Thanks to the tax, that rate was raised to a more reasonable 25 percent.

    Axing the alternative minimum tax will undoubtedly save Trump hundreds of millions of dollars over the years – but it will cost the American people nearly $450 billion in lost revenue over the next decade. That's money that could be used to shore up Medicare and Medicaid, and improve our schools, among many other vital public investments.

    A third huge gift to Trump and his family is repeal of the estate tax. The estate tax only affects the richest 1 in 500 families, since it only kicks in when an estate is valued at $5.5 million or more ($11 million for a couple). It's one of the few antidotes to our nation's dangerously widening wealth gap.

    If Trump is anywhere near as rich as he claims to be, his family members would see their inheritances balloon by billions of dollars if he succeeds in eliminating the estate tax. Meanwhile, the rest of America would lose $240 billion over 10 years, making it tougher to pay for health care, education, retirement security and all the other services needed by those of us who don't inherit a fortune.

    Trump and his fellow Republicans have quite a sales job in front of them if they plan to convince the American public that a giant tax handout to the rich and corporations is supposed to help working families. But in trying to make the sale, Trump will be in a position he's quite familiar with: working for his own enrichment.

    Copyright 2017 U.S. News & World Report

    http://www.msn.com/en-us/news/opini...op-tax-reform/ar-AAszHfi?li=BBnb7Kz&ocid=iehp
     
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  36. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Accountants: Trump plan would result in higher taxes for some families
    President Donald Trump says his tax reform plan will benefit the middle class, yet local families could pay the same amount — or more — if Washington eliminates itemized deductions like the tax write-offs you get for paying local wage and state property taxes, local accountants said.

    In a nine-page tax reform framework released Wednesday, Trump proposed doubling the standard deduction — or basic tax write-off — to $12,000 for singles and $24,000 for married couples and "eliminating most itemized deductions."

    “This is going to reduce the number of people who are itemizing,” said Cheri Freeh, a certified public accountant with Hutchinson, Gillahan & Freeh in Quakertown.

    “There's going to be less record keeping for the taxpayer," she said. "And, it’s going to mean less audits.”

    Yet the actual tax savings is too just difficult to forecast without more specifics, said Joel Naroff, of Northampton-based Naroff Economic Advisors.

    “At the low-income level, this probably won’t do a lot," Naroff said. "For the middle-income household, we just don’t have enough information. For example, are they going to allow Americans to write off the interest on their mortgages?”

    Every year, millions of Americans also deduct thousands of dollars based on local wage or state property taxes. “In New Jersey, that’s a $15,000 write off — and that’s on the low end,” said David Gill of Haefele Flanagan Certified Public Accountants in Mount Laurel.

    “Pennsylvania has some of the highest property taxes in the country," said Freeh. "We could lose that deduction, and that could be huge. For some people, it could be $13,000 per year."

    Washington also could cancel the income tax write-off for medical expenses not covered by your health insurance, said Jay Brower, a CPA with Marks Paneth, LLP in Jenkintown. “Not a lot of people write off their medical expenses, but, for some people, it’s a huge expense.”

    By contrast, few will be impacted by Trump's other proposal to eliminate the estate tax, experts said. "The tax affects estates valued at over $5.5 million," explained Brower.

    "Overall in the entire country, it’s less than 1 percent paying that tax," Freeh estimated.

    In the framework released Wednesday, Trump said he wants tax reforms that "raise retirement plan participation,” though no specific details were provided by the president.

    Congress probably will increase the amount that Americans can legally pour into tax-deferred retirement savings accounts, said Brower. "Typically, higher-income people have more money to put into those accounts," he said.

    More consistency is needed with 401(k), Roth and traditional IRA plans, said Freeh. "The opportunity for people to save money is great, and there’s just so many ways to do that. It’s just extremely complex, and my concern is that they’re going to come up with something that’s going to add to that complexity," she said.

    Increasing 401(k) and IRA contribution limits is a good thing. But it's unlikely to impact most Americans, said Gill. "Right now, how many of us are maxing out the contributions to our 401(k) plans?"

    Enjoying our content? Become a Bucks County Courier Times subscriber to support stories like these. Get full access to our signature journalism for just 44 cents a day.

    James McGinnis: 215-704-0451; email: jmcginnis@calkins.com; Twitter: @james_McGinnis

    http://www.buckscountycouriertimes....e7-8972-133ed20442ed.html?hp=mid-threestories
     
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  37. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Count the broken promises in GOP tax plan
    • By Albert R. Hunt Bloomberg View
    • 2 hrs ago

    The Republican tax plan, still only a rough blueprint, has lost its first battle: It doesn't live up to the promises that President Donald Trump and top Republicans made.

    The proposal, unveiled in a short document, proposes to slash corporate and individual taxes, claiming this loss of federal revenue will be offset by eliminating unspecified deductions. Based on what's available, however, it's clear the plan won't deny net tax cuts to the wealthy, will not be revenue-neutral, and will not stick it to wealthy hedge-fund and private-equity executives. All these elements are at variance with commitments made by Trump and prominent Republicans.

    Any tax bill will be reshaped by the legislative process, which is more likely to minimize reforms. Still, politicians court trouble when they violate prominent pledges. In selling the Affordable Care Act, Barack Obama promised that if people liked their health care plan, they could keep it. When that proved untrue, support for the measure suffered.

    Here are some of the false claims Trump and the Republicans have made about their tax plan:

    • "The rich will not be gaining at all with this plan," Trump declared again last week. From the outset, Treasury Secretary Steven Mnuchin vowed that "any reductions we have in upper-income taxes will be offset by less deductions so that there will be no absolute tax cut for the upper class."

    Wealthier taxpayers get some huge tax cuts in this plan. The top individual top rate would be cut from 39.6 percent to 35 percent; the maximum corporate rate would be slashed to 20 percent, which helps corporate executives and investors. The estate tax, paid predominately by wealthy heirs, would be eliminated, as would the alternative minimum tax. A provision that would significantly help some upper-income individuals would allow a special "pass through" to pay a lower 25 percent individual rate. The liberal Center on Budget and Policy Priorities estimates almost 70 percent of these benefits would go to individuals with incomes over $1 million.

    Some benefits would be offset by eliminating expensive deductions, such as the write-offs for state and local taxes, which disproportionately favor wealthier taxpayers. But tax experts say this broadening of the base won't come close to matching the upper-income-centric cuts.

    • The tax plan "breaks even" in the budget "over a 10-year period," said House Ways and Means Committee Chairman Kevin Brady. Senate Majority Leader Mitch McConnell likewise said the proposal will be "revenue-neutral" over that decade. No, it wouldn't be.


    Well-heeled campaign contributors will be especially pleased by the substantial rate reductions and the elimination of provisions like the estate tax. The idea of offsetting them by curbing deductions is a false hope. The Republicans have already said two of the biggest deductions, for home-mortgage interest and charitable contributions, won't be touched. You can be certain that the quarter-trillion-dollar annual exemption from taxable income for employer-sponsored health insurance won't be on the table, either.

    • "Carried interest was unfair, and it's gone," Trump promised earlier this year, referring to the loophole that permits hedge-fund and private-equity executives to treat certain income at the lower capital gains rate instead of as ordinary income. There's no mention of carried interest in the tax document.

    Even if the Republicans follow through on the president's vow, it would be, to use that terrible cliche, a nothingburger. The top capital gains rate is 23.8 percent -- which is a lot lower than the maximum individual rate of 39.6 percent. But under Trump's proposed 25 percent pass-through provision, which tax experts say would be a vehicle for this carried-interest income, there would be almost no differential.

    • Trump's spokesmen have dismissed criticism that the tax plan will benefit the president and his family. But there is no indication the plan would curb some of the most generous real-estate write-offs the Trump family and his son-in-law, Jared Kushner, have enjoyed. (The measure probably would eliminate the deductibility of property taxes and reduce the number of people taking itemized deductions, both of which affect real estate, though this pales next to the big benefits Trump has taken.) The president refuses to release his tax returns, but experts say it's a very good guess that he and his family would benefit from the pass-through proposal.

    Enjoying our content? Become a Bucks County Courier Times subscriber to support stories like these. Get full access to our signature journalism for just 44 cents a day.

    Albert R. Hunt is a Bloomberg View columnist. He was the executive editor of Bloomberg News, before which he was a reporter, bureau chief and executive Washington editor at the Wall Street Journal.

    http://www.buckscountycouriertimes....cle_d3b60a4e-a45d-11e7-be0e-c70b526a0953.html
     
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  38. edsl48

    edsl48 Silver Member Silver Miner

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    I do not consider myself rich. At the same time I do not itemize deductions meaning to me I will personally get a doubling of my standard deduction resulting in tax savings. Quite frankly allowing deductions for state and local taxes amounts to just another income redistribution plan. Why should I pay a higher tax so that someone in hock on a mortgage and real estate taxes for their McMansion gets a tax break?
    As for the wealthy they always seem to have nice little schemes to avoid taxation and as far as the Bloomberg article goes without even reading it I can guess its slant.
    I think a lot of middle class taxpayers will save under the plan
     
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  39. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Trump's tax plan is ALREADY in trouble with his own party as plan to axe state and local tax deduction comes under fire from Republicans
    • The White House's tax plan proposes to raise $1 trillion over 10 years by eliminating the deduction for the state and local income taxes people pay
    • That's drawing howls of protest from Republicans whose states charge high income tax rates
    • Seven states have no income taxes, meaning their citizens wouldn't be affected
    • But some states charge up to 13.3 per cent on top of federal taxes
    • A family in Los Angeles earning $100,000 would have to fork over roughly an additional $1,800 to Washington if the longstanding deduction goes away
    • Trump is pitching his tax plan to the National Association of Manufacturers on Friday


    Read more: http://www.dailymail.co.uk/news/article-4932944/Trump-promote-tax-plan-address-manufacturers-group.html#ixzz4u5Eb0u7s
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  40. edsl48

    edsl48 Silver Member Silver Miner

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    High tax rate states are getting subsidized by the Federal Tax system. Raise the standard deductions so we will all get a more even shake out of things.
     

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