Update 1: To our complete 'shock', Democrats have already taken to the media to bash Trump's tax proposal as a "windfall for the weathly" even though the plan explicitly contemplates a new top end personal tax bracket to "ensure that the reformed
tax code is at least as progressive as the existing tax code and does
not shift the tax burden from high-income to lower- and middle-income
taxpayers."
SCHUMER: GOP TAX PROPOSALS WON'T FLY WITH AMERICAN PEOPLE
SCHUMER: GOP TAX PROPOSALS WOULD RESULT IN WINDFALL FOR WEALTHY
WYDEN: GOP TAX PLAN BREAKS TRUMP PLEDGE THAT RICH WOULDN'T GAIN'
Meanwhile, Senator Wyden somehow concluded that a "lack of detail" necessarily confirms that the middle class is about to get screwed by the Trump administration...we're waiting to hear from Wyden on whether that lack of detail also confirms that Trump colluded with the Russians in 2016.
WYDEN: LACK OF DETAIL IN PLAN MEANS MIDDLE-CLASS WILL BE HIT
* * *
This afternoon, during a speech in Indianapolis, President Trump was expected to reveal, for the first time, the details of the long-anticipated Republican tax reform proposal that calls for substantial business and individual tax cuts. But in a political era where every little thing is leaked to the media, we no longer have to wait for presidential speeches to learn the details of key pieces of legislation. As such, below is a 9-page summary of Trump's tax plan courtesy of the latest leaks.
Here are the highlights:
GOALS
The Trump Administration, the House Committee on Ways and Means, and the Senate Committee on Finance have developed a unified framework to achieve pro-American, fiscally-responsible tax reform. This framework will deliver a 21st century tax code that is built for growth, supports middle-class families, defends our workers, protects our jobs, and puts America first. It will deliver fiscally responsible tax reform by broadening the tax base, closing loopholes and growing the economy. It includes:
- Tax relief for middle-class families.
- The simplicity of “postcard” tax filing for the vast majority of Americans.
- Tax relief for businesses, especially small businesses.
- Ending incentives to ship jobs, capital, and tax revenue overseas.
- Broadening the tax base and providing greater fairness for all Americans by closing special interest tax breaks and loopholes.
Personal Tax Rates: As expected, Trump's plan includes a doubling of standard deductions with a consolidation of tax brackets and the suggestion that a new top end bracket may be created to "ensure that the reformed tax code is at least as progressive as the existing tax code and does not shift the tax burden from high-income to lower- and middle-income taxpayers."
The framework simplifies the tax code and provides tax relief by roughly doubling the standard deduction to:
- $24,000 for married taxpayers filing jointly, and
- $12,000 for single filers.
Under current law, taxable income is subject to seven tax brackets. The framework aims to consolidate the current seven tax brackets into three brackets of 12%, 25% and 35%.
Typical families in the existing 10% bracket are expected to be better off under the framework due to the larger standard deduction, larger child tax credit and additional tax relief that will be included during the committee process.
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 and does not shift the tax burden from high-income to lower- and middle-income taxpayers.
Alternative Minimum Tax: Eliminated.
The nonpartisan Joint Committee on Taxation (JCT) and the Internal Revenue Service (IRS) Taxpayer Advocate have both recommended repealing the AMT because it no longer serves its intended purpose and creates significant complexity. This framework substantially simplifies the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice.
Itemized Deductions: Keeps home mortgage interest and charitable deductions but eliminates all others including the "State and Local Tax" deduction which will mostly impact folks in the high-tax blue states of New York, New Jersey and California (but our understanding is that NY, NJ and CA residents want to pay higher taxes...so it's really a win for everyone).
In order to simplify the tax code, the framework eliminates most itemized deductions, but retains tax incentives for home mortgage interest and charitable contributions.
Death Tax: Eliminates "death tax" and generation-skipping transfer tax.
Small Business Tax Rates: Capped at 25%
The framework limits the maximum tax rate applied to the business income of small and family owned businesses conducted as sole proprietorships, partnerships and S corporations to 25%.
Corporate Tax Rates: Reduced to 20%
The framework reduces the corporate tax rate to 20% – which is below the 22.5% average of the industrialized world. In addition, it aims to eliminate the corporate AMT, as recommended by the non-partisan JCT. The committees also may consider methods to reduce the double taxation of corporate earnings.
Capital Investment Expensing: Immediate expensing.
The framework allows businesses to immediately write off (or “expense”) the cost of new investments in depreciable assets other than structures made after September 27, 2017, for at least five years.
C-Corp Interest Expense: Caps interest expense deduciton via some yet TBD formula.
The deduction for net interest expense incurred by C corporations will be partially limited. The committees will consider the appropriate treatment of interest paid by non-corporate taxpayers.
Repatriation: Enacts "100% exemption" for dividends from foreign subsidiaries
The framework transforms our existing “offshoring” model to an American model. It ends the perverse incentive to keep foreign profits offshore by exempting them when they are repatriated to the United States. It will replace the existing, outdated worldwide tax system with a 100% exemption for dividends from foreign subsidiaries (in which the U.S. parent owns at least a 10% stake).
To transition to this new system, the framework treats foreign earnings that have accumulated overseas under the old system as repatriated. Accumulated foreign earnings held in illiquid assets will be subject to a lower tax rate than foreign earnings held in cash or cash equivalents. Payment of the tax liability will be spread out over several years.
Noticeably absent in Trump's tax plan is any mention of the treatment of "carried interest"...a hot-button topic for hedge funds and private equity managers that reap the rewards of having the majority of their income treated at "capital gains" rather than "personal income."
Of course, the real question is whether the bill has even the slightest chance of passing both houses of Congress or if will soon meet the same fate as the failed Obamacare repeal bills.
And the initial market reaction seems to be disappointment...
Here is the full outline:
looks good won't pass
Good? Unless it says "INCOME TAX IS RESCINDED" it's not worth the paper it's printed on.
Half a loaf is better than nothing. Sometimes you've got to deal with reality as much as you'd like to live in a fantasy.
Income tax will never be rescinded just like the gibsmedats in Obamacare will never be rescinded.
Now get back to work. There are millions of niggers and illegals on welfare depending on you!
Leaked? as in Golden Shower?
Shits given about the piss and shit tax plan: 0
Worthwhile and constructive comment. Thanks for wasting my time with drivel. Don't post nonsense - at least arm yourself with facts before opening your mouth, like this:
According to 2013 data from the U.S. Department of Agriculture, which administers the program, 40.2 percent of SNAP recipients are white, 25.7 percent are black, 10.3 percent are Hispanic, 2.1 percent are Asian and 1.2 percent are Native American.Feb 28, 2015
Black population is only 13% yet they get 25% of welfare/food stamps ??
Does that sound reasonable to you??
W
Shut up and pay for it with ur taxes white boy...
>25% of the welfare and food stamps
Sounds low, TBH.
Never use logic on illiterates.
Not really reasonable.
Heres more
Jewish population is only 2% yet they get 44% of the Supreme court??
Does that sound reasonable to you??
83% of Hollywood
65 % of print news
88% of teevee
61% of radio
72% of wall st banks
100% ot the federal reserve
100% of the president
And youre worried about some niggers getting table scraps.
Bahahaha ... Small Business Tax Rates: Capped at 25%
Everybody is just going to take a salary for a de minimis amount to avoid audit penalties, and take the rest as distributions. Voila......taxes on the "rich" capped at 25%.
I love Trump!
Another way to look at it is that whites only represent 2/3rds of their population demographic on food stamps, while blacks represent double their population demographic on food stamps.
That is a fair and balnced representation. Do that with crime and you will see why I fled the city for a swamp!
NO dindus for miles!
The increased child tax credit will hurt me, a single, childless woman who must pay all bills, including unaffordable rent, on one, earned-only steam of income. I am always competing for jobs in offices that staff with between 98 and 100% childbearing-age mom workers who have income from spouses, child support that covers their rent or an array of monthly welfare freebies, including free rent, free groceries and refundable child tax credits of up to $6,269. Employers hire mostly these women, even in industries that purport to require licensing that they lack.
Their unearned income enables these frequently absentee, blatantly discriminatory and back-watching moms to work for rock-bottom wages, diluting wages for women who have no unearned income from monthly welfare, spouses or the tax-welfare code every bit as much as illegal aliens with welfare for their US-born children reduce wages in male-dominated industries. The maximum child tax credit of $6,269 equals 4 months of wages in a $9-per-hour job.
These moms can easily work part-time when their unearned income from spouses, ex spouses or welfare & taxfare covers their major household bills. There will be even more of them chasing the part-time/churn jobs now, leaving work for weeks at a time for baby-travel soccer and at 2:30 every day at the busiest time of the workday, inconveniencing paying customers with no repercussions due to the momma-work cliques.
For this issue alone, I deeply regret my vote and all of the thousands of pro-Trump treatises that I wrote on the internet from the beginning of his campaign. I am not voting for so-called Republicans in future elections, either. They screw individuals as much as Democrats, particularly individual citizens who do not have high incomes.
That includes a lot of voters. Twenty-eight percent of voters are over 40 and childless, and people over 40 vote at much higher rates. That includes tons of male, non-custodial parents with low incomes. That also includes single moms with grown children who must live on one, low, earned-only income stream, although they face less of the viscousness in these mom-gang workplaces. I am going to write in names in future elections.
Not to be a jerk but this does appear to be incentive for you to either move to a more affordable State or find a higher paying job.
Loser mindset. Such a dramatic change wouldn't happen without a revolution and the installation of an entirely new government. When you are working within the framework of an existing bureaucratic system, you get incremental change. And all change for the better is GOOD.
Baby steps. We both know that Congress won't be up for that so this is a good step forward. Next step is to reduce governement spending and apply tariffs. THEN eliminating the Federal Income Tax becomes achievable.
Odds of passing:
<<<<<< 0%
<<<<<< 100%
Where's tthe faith dude! Ryan and McConnel can get anything passed. (is /sarc needed)
Has the AMT been taken out? If not, these tax cuts will be meaningless to lots of small business owners. Business owners who can't even deduct their own healthcare premiums, while everyone else can. Business owners who have to pay the full cost of their kids college tuition while everyone else gets grants and scholarships. Small business owners are the ones who pay stealth taxes, and those are just two examples.
I'm awaiting the DNC Tubercular Choir and their famous chorus of "Tax Cuts For The Rich"
Whatever happened to Pelosi's, "We have to pass it to know what is in it"?
Power to tax is the power to destroy.
Get rid of FIAT money, Central Banking & Income Tax - that's the Socialist & Globalist destroying revolution the Internationalist Bankster elites are terrified of.
go start a new country in one of those destroyed islands and make all the rules you want, or just drool about them where you are
you're the reason ron paul didnt win shit in 2012... just fantasizing endlessly with no results just like Ron
Force the current owners to suck up all that loose money out there at a loss, then ...
Nationalize the Fed!
The power to tax is the power to create new welfare programs that rig the workforce, disguising it as "tax breaks."
The new tax code didn't fix shit. We need a consumption tax and abolish the IRS.
Sorry, but it's not 1980, or 2001. Tax cuts aren't possible. We have $20 trillion dollars in debt !!
Who's going to buy the bonds and soak up the new debt if this tax plan passes and it blows a giant hole in the budget deficit ??
When Bush cut taxes, revenue for the Federal government actually went down and the budget deficit soared. So this tax cut creates "growth" and more revenue is not accurate.
www.usdebtclock.org
Tax cuts aren't possible, they are necessary.
W never met a spenging bill he didn't like (until near the end of his first term), so that is part of the problem. One cannot keep spending money they don't have and expect debt to go away (ask any college graduate with a credit card). We need to CUT SPENDING. Not the GROWTH of spending, but spending ITSELF.
Lower taxes in Reagan's era led to FAR GREATER revenues for the government, and he cut spending to boot.
Bullshit. The national debt went up at a faster rate with the actor president than was ever thought possible.
In fact , he is the modern day record holder for selling our country to the Jewish banking cabal.
When Bush cut taxes, revenue for the Federal government actually went down and the budget deficit soared. So this tax cut creates "growth" and more revenue is not accurate.
Reagan too.
The republicans are totally in bed with Jewish Central bankers.
democrats tax and spend.
Republicans borrow and spend.
Outlaw both parties/they are NOT Americans.
Not a dimes worth of difference-George C. Wallace
What is the difference between a drunken sailor and a Republican?
When the sailor runs out of money he goes back to the ship and sleeps it off.
I'm laughing as it's dead on arival..
I'll stay in touch....think of me when it fails like obamacare removal........I love watching as the american get played like an instrument.....little fucking goys......sheep to the slaughter.........
yuri bezmenov explained it: useful idiots..................
Someone please explain the foreign earnings repatriation.
How about we stop rewarding people for churning out gutter snipes and getting married?
Unless you're self employed, then that personal exemption evaporates.
Better than what we have. But, a flat rate for everyone is best. No exceptions. Everyone in this country should have some skin in the game. And, if you take public money - for the period that you do - you forfeit the right to vote.
And, no more Muslims.
READY! ON YOUR MARKS!
IMPLODE!
Fucking morons say tax cuts create growth.. ok.. but if we have mored ebtt payments to service because of new bonds, it basically erases any growth.
Blah, blah, blah, blah, blah.......give it on this side, take it on the other.
ANY dumbass, and I mean ANY, that believes the US gov is going to give a "break" to anyone except themselves is a delusions, half-witted, moron, that DESERVES to be flipping burgers at McD's for the rest of their life.
Completely nothing more than Kabuki theater and WASTE OF TIME.......
Don't get too excited - this will be ripped to shreds in Congress.
Bought the rumor/hope?
Now sell the news/reality.
dont worry we'll probably get a EOM/EOQ rally to save us all from market reality.................
Trump TAX plan get the KURDS to Syrian Oil Fields North of Syria first to STEAL the oil. FK TRUMP
This is an attack on small businesses and the poor, and will also go nowhere like Trump's presidency - which is quickly becoming the GOP's Carter administration...
its is always comical to see them tout that changes in taxes will create more jobs. hmmm, if i pay less taxes as a busness owner, i will automatically hire more people?? no, only DEMAND creates more jobs, even if taxes were high! this trickle down BS has got to be on its last legs at this point.
It helps if one understands Economics 101. If people have more money to spend, they typically spend it. That drives up demand for products, which drives business growth. Secondarily, if businesses have more money to invest they typically do, with the intent of driving greater sales and therefore profits. If I own a business and sales go up, I will likely hire more staff and/or buy additional machinery to keep up with demand, etc.
"Trickle down" is a defamatory term coined by the Marxists to describe what is in effect, good economics. Kennedy knew it, Reagan knew it (and gained us the longest postwar economic period in our history), and Trump knows it. Increased taxes are a millstone around the neck of commerce, and the ONLY ones who benefit are the scumbags in Congress who get to dole out the money to their friends and colleagues.
Not this time. Debt is too high now. If a family gets a $2000 tax cut, they will use it to service old debt, not necessarily spend it on new products. Middle class America is flat broke and living off credit card debt.
Meanwhile the government will have to issue more bonds to soak up the massive budget deficits, we will end up paying more on interest on those new bonds. It's NOT sustainable!