Posted on 10/23/2017 6:45:46 AM PDT by SkyPilot
The Republicans on the House Ways and Means Committee — engaged in a high-pressure, high-stakes tax policy rewrite — are currently exploring not cutting the income tax rate for people who earn $1 million or more per year.
Right now, the marginal tax rate for anyone who makes $418,000 or more per year is 39.6 percent. The Republicans' opening gambit — secretly negotiated for months, and endorsed by Trump — would have cut the highest tax rate to 35 percent. But now, House Republicans' thinking has changed. Under their current thinking, people who earn between $418,000 and $999,999 will be in a lower tax bracket. But those earning $1 million or more will not.
Keep reading 273 words
Opting to keep taxing million-dollar-earners at the current 39.6 percent-rate will help stem the deficit increase from tax cuts for corporations and the middle class.
Caveat: The million dollar bracket plans haven't been finalized and could change this week, as committee Republicans finalize their tax bill during meetings on Tuesday and Wednesday.
Potential blowback: If the Committee Republicans ultimately decide not to cut the income tax rate for million-dollar-earners, much of the Republican donor class and Reaganomics community (including anti-tax activist Grover Norquist) will feel betrayed.
"I understand compromise, but why compromise with the sin of envy?" Norquist told us. "This isn't the dumbest idea I have ever heard of. But it is in the top 20."
Norquist argues this won't placate Democrats — who inevitably will charge that Trump's tax overhaul is just designed to help the rich — but will alienate conservatives.
(Excerpt) Read more at axios.com ...
“That’s the problem: You keep reading liberal trash and believing in it.”
It is like a religion to post fake news crap about Trump or to ping fake news crap about Trump and whine.
How many of them are small business owners?
If they really wanted to help low and mid income taxpayers, have the tax tables tied to the rate of inflation.
hmmm...
Folks, the corporate tax rates will likely plummet downward.
If so, this is a solid halfway point to a better future.
Caving as usual.
I am not impressed nor am I surprised.
Renters do not directly profit from mortgage deductions. My wife and I give freely to charity without itemization, because it’s giving to charity. If you only give to charity because you get to deduct it, you aren’t really providing charity.
I suppose you would try deducting a quarter given to a bum on the street, right?
Come on, I know you are smarter than this. It is not just semantics. If deductions are killed, and then the almighty Federal government says: “You now owe $xxxxx to the IRS”, it’s a tax hike. Period. I could try to convince you that eliminating the laws against drunk drivers is not going to lead to more drunks on the road. But that would be foolish.
Sure it will. That’s why many GOP House members, including mine, are against eliminating the deduction. And it also will tax the hell out of the middle class in order to “pay for” slashing the corporate rate. Even the Ways and Means Committee outlined this.
Post #63 - great idea. It would never happen. But can you imagine Washington trying to explain why that would not be fair and just?
I refer specifically to the elimination of deductions for state and local taxes. The amount lost isn’t that much and can easily be made up by reducing state taxes.
“No it’s not President Trump.”
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It is if he signs the bill keeping the 39.6 percent top rate on top earners, i.e., the successful business owners who create jobs and keep the economic engine running.
On Rush’s show today, he played a clip of Trump saying he didn’t want to be seen as defending or representing “rich” people. Funny, I thought a president was supposed to represent ALL the people.
Trump in the clip quoted his friend Robert Kraft. (I’m surprised the president is still friends with Kraft after Kraft’s comments defending the kneegroes and blaming the president for introducing politics into sports, which the president did not).
Anyway, Kraft said don’t give me a tax cut....give it to the middle class. Right....do the words “taxpayer funded stadiums” mean anything to you, Mr. Kraft?” There is a world of difference between men like Donald Trump and Robert Kraft, who have been multi-billionaires for many years, and a middle class person who starts a successful business and just recently became a millionaire with a net worth of $1 million - $10 million.
At least bring back income averaging.
It just perpetuates the RAT scam of demonizing the successful and punishing them for their success.
During the campaign, Trump spoke of a top tax rate of 20 - 25%. I guess that campaign promise is out the window.
P.S.: I am NOT one of these millionaires, unfortunately, but I aspire to be. I also don’t like ceding socialist tax policy to the democrats or joining them in their demonization of the successful.
It’s called “optics”.
People think having One Million Dollars is assets makes you an Evil Millionaire. It doesn’t really work that way.
It is nothing but Envy Politics, and there are more envious people in this Country than anyone would guess.
Try and float a 15% Flat Tax where everyone gets a Personal Deduction of $15,000 for themselves and every Dependent before they pay a dime including FICA Taxes. A Family of four doesn’t even report the first $60,000 of Income.
Most wouldn’t pay a dime in Taxes, but they would simply hate the idea that the Evil Rich only have to pay 15%.
Envy, the tool of Despots and Democrats, but I repeat myself.
Just because I was too ####ING LAZY to go to school another few years and potentially make a fortune in programming, I’m supposed to NOT want those who did to keep their money?
Made a good living in graphics, make a good living now in what I do.
My nephew studied like a mother ####er for law school and the bar and he WILL be making a million a year one day. (What they offered him out of law school just staggers my mind, but he’s top 1 percent. All the other nephews are middle-upper middle class, which aint bad.).
But he should get ####ed for being brilliant and extremely hard working?
Good Grief.
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I don’t care about the million dollar bracket. I’m more concerned with the other brackets and just how much my taxes are going to go up.
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You, and everyone else, SHOULD be, for when the ‘rich’ are bled dry....
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Slash it all to 10% and take away everyone’s deductions.
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Though better, it still does nothing vs. 47%+ that don’t pay ANYTHING\poor\retired (EVERYONE uses govt, EVERYONE pays), still economic slavery, etc.
Straight consumption tax @ ~10%. No prebate, no deductions, no exceptions.
>And by the way, what happened to “tax reform”?
HAahahahhahahaha. It’s on the same docket as Exec. Amnesty, PP\NEA\NPR de-funding and O’Care repeal.
Don’t worry, few more months and we all should hear their clarion call (usually stops by Winter).
They will come for the middle class long before the 'rich' are even close to bleeding, much less bled dry.
It’s not he Trump tax plan that scares me, it’s what Congress may put forward in its place that has me worried.
For a true fair tax plan you must cut everybody’s taxes.. That is fair..
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