The slogans from the left are getting tiresome.
50+ years of the same inanity.
Eliminate progressivism at the federal level and roll back FDR’s legacy of high handed lawlessness and we’d do very well with less and governance by constitutional means.
All right. The lefties getting back to their typical class warfare rants. I was getting worried that they were too obsessed with the “Blame Russia” card! LOL
I can remember when I could deduct all the interest from my credit cards....and it was a bundle.
We Californians will get killed, paying taxes on our state income and property taxes. Even worse if the leftist CA dictatorship gets rid of Prop 13. Don’t tell me to move. I’m too old and ingrained with my medical network.
Let people keep their own money?
HORRORS!!!!
Spending money it doesn’t have has turned the USA into a debt ridden monstrosity living on borrowed time.
Also, if Kansas didn't have all these Illegal kids in our school system we would have this budget problem now then would we?
Simple answer....It’s not your money.
THe problem was not the tax rate reductions, it was the refusal to cut spending, and the imposition of federal mandates that required these expenditures.
And.....right on cue.....the “massive back-door tax cut for the EEEEEEEVIL Rich!”
Most self-respecting thieves won’t try to tell their victims that robbing them is actually quite good for them; it’s humiliating to be laughed at while you’re getting your a$$ kicked. Doesn’t seem to bother democraps though.
My accountant says the double standard deduction would just about wipe out my tax bill which would be very good for me of course. But lots of things get proposed and never happen so don’t celebrate yet.
Satire?
Obama’s tax plan turned the whole US into Zimbabwe, so Kansas would be a big step forward. )
Some drugged-up nut job somewhere, is actually suggesting that, that might be a BAD thing...
Hang in there, Kansas!
“Oh NO! The sky is falling because Trump lowered taxes! How will we ever fund the 65 federal job training programs that turn out jobs at a cost $230,000 each?”
The only reason that Republicans run in fear every time the left demands that they "pay for" tax cuts, or when the left spins scary stories of the horrors of a "government shutdown", is because the federal government has so wormed its way into every aspect of our daily lives. Imagine instead what would happen if we had a federal government constrained to its constitutional limits: So long as defense and a very few other legitimate functions were covered, no one would care one iota if the rest of the budget collapsed, for whatever reason.
The left has so expanded government, while making far too many people dependent upon it, that they can effectively hold the entire country hostage any time someone proposes cutting taxes. I hope that Trump will realize this at some point and begin to really dismantle the completely unnecessary components of the federal bureaucracy.
Or for the NEW RICH, the illegal killer "refugee" and welfare culture.
Here is the current bottom line on Tax Reform.
The process is driven by the disparity between the US Corporate rate of 35% and the world business tax rate ranging from 1 1/2% to 15% (the Hong Kong additional 1 1/2% expiring).
There are a wide range of other issues—personal rates are too high and discourage investment risk taking; we have this wide range of other deductions and credits that were intended to incentivize a particular kind of activities but have operated to one degree or another simply as tax shelters or havens.
But the key issue is the world rate and applicability to business income of the global industry establishment.
The inside story in DC is that the issues are too complex; the fiscal impact of reasonable modifications to present policies is too great to permit a bill in the current divided Congress. So the betting is that a broad reform bill can’t get done this year.
Backing down from that position, the conventional wisdom is that the pressure of the international tax environment is so great, something must be done immediately—lets just reduce the US Corporate rate to 20% or maybe 15%.
That isn’t going to happen. Doing only that leaves the most productive, innovative, employment segment of domestic industry in pass through entities (S Corps and Sub Chapter K entities—LLC’s and partnerships) taxed up to 50% in competition with the multi national C Corporations taxed at the simple reduction of 15% or 20%. On its face that seems unreasonable.
Congress often does unreasonable things but this one faces at least one or two material obstacles. Largest: Orrin Hatch, Republican Chairman of the Senate Finance Committee says outright that Senate Finance will not report a bill out that does not rationalize the rate burden on pass through entities. The staff guys on Finance say that position reflects a consensus on the Committee.
Trump (or rather Roy Cohn) are essentially on the same position as Hatch although they haven’t said so quite as directly.
But the Administration proposal yesterday addresses the issue—sort of: We will tax trade or business income earned at the pass through entity level at 15%. Regrettably, that proposal, as least as far as we can tell early Thursday morning, is a little lacking in important detail.
How would this work? The 15% at the entity level is the only income tax—the 85% of net income remaining is now PTI (”Previously Taxed Income”) distributed tax free? It isn’t exactly brain surgery to see where this is going to lead.
And that has been the primary problem with tax reform to date and so far, I haven’t seen any obviously acceptable proposed legislative solution.
Very doubtful that the “simple rate reduction” is going to happen either. So that’s the bottom line at present—significant pressure to act; most practical action obstructed by difficult to resolve issues. As my most direct DC source puts it on a daily basis, anyone who tells you how this is going to come out doesn’t understand the problem. Stay tuned. The situation looks much like prevailing conditions in the fall of 1986. When we reached October, we did in fact get a broad bill reflecting the most significant overall of federal tax law since 1954—effective two and a half months later on January 1.
Trump’s proposal yesterday also highlighted one other issue that has been a common topic and should be in view of the legal business community. World tax policy should be founded on “territorial taxation”—income should be taxed more or less on some kind of rough justice basis where the factors that produce it are located. A solution regularly advanced by our tax partner—the states allocate income for tax basis purposes on a factor formula, do something like that internationally. It appears that view is becoming a common international tax policy foundation and it is a reasonable idea for which it looks like the time is coming.
All that said however, assume that at some point (this year; next year; or whenever), you get to a legislative position where business tax rates level out internationally on the basis of a reasonable allocation of income, that leaves everyone on a level playing field.
Not very likely that results in a material boost to the US economy from tax policy. Maybe the US gains some benefit from reducing what is presently a significantly excessive tax burden to a reasonable level but that isn’t going to operate as a significant boost to the US economy unless other factors unrelated to the tax system are also rationalized.
I am from kansas, brownback returned some of our hard earned tax dollars back to us and the democrates are and have been having an alian because of it. They can’t find a way to steal more money from us through the state government because of sam. All the budget cuts the left speaks of have zero impact on real learning in the schools. Fake news or (lies) are their top weapon and straight from hell.