Posted on 10/24/2017 2:46:59 PM PDT by Kaslin
America’s elite quickly rebounded from the economic recession of 2008. Average workers, on the other hand, faced stagnating incomes and declining opportunities throughout the Obama presidency.
In fact, the American middle-class has barely seen a pay raise in over fifteen years. No wonder there is a growing feeling in America that only the wealthy and connected can succeed, a sentiment candidate Donald Trump successfully capitalized on in 2016.
Now, in an attempt to reverse these trends, President Trump and congressional Republicans are arguing that tax reform would jumpstart the American economy and provide Americans with a much-needed pay raise.
While all the details of the Republican tax reform plan are not yet available, Trump and his allies in Congress have published an outline of their goals, including cutting the corporate income tax rate from 35 percent to 20. While the rest of the world has aggressively sought to lower their corporate rate in recent years, America's rate remains the highest in the industrialized world; China has a 25 percent business tax rate, the European average is 20 percent, and the Canadian rate is 15 percent.
Behind China and Europe is not where America should be if it wants to compete with the rest of the world. A new analysis by the Council of Economic Advisers found that a 20 percent corporate rate would increase the average household income in the United States by $4,000 annually.
Here’s one reason why: America’s punitive tax rates encourage companies to park their cash overseas; with $2.5 trillion offshore, the American economy is missing out on the additional business investment and wage growth from allowing companies to return their overseas profits to America.
The plan would also reduce the current seven personal income tax rates to four: 35 percent, 25 percent, 12 percent, and zero. Consolidating the rates would provide tax relief to every American who pays taxes. The plan also calls for doubling the standard deduction for individuals from $6,000 to $12,000 and $12,000 to $24,000 for married couples.
This means taxpayers will see no federal taxes up to their first $24,000 in income. This feature greatly simplifies the tax code and provides a tax cut for the roughly 105 million Americans that use the standard deduction.
The virtues of simplification, in fact, cannot be overstated. Filing taxes should not require professional help, but Americans currently spend 6 billion hours a year complying with tax law according to the federal government’s National Taxpayer Advocate. Since 2001, Congress has made over 5,900 changes to the tax code. The current system is filled with so many exemptions, exceptions, and allowances that 94 percent of Americans either pay someone or purchase software to do their taxes.
If President Trump and congressional Republicans are successful, American families will experience significant economic growth and be the beneficiaries of substantial tax cuts, tax simplification, new or better jobs, and higher wages. And all of this success will undoubtedly benefit Republicans as they prepare to campaign for reelection in late 2018.
LOL, tax reform is dead. With Corker and Flake announcing that they are retiring you can bet it will free them to be the democrats they always wanted to be.
Libs destroy everything they touch....that includes the middle class.
Flake & Corker are lib subversives. They should be thrown out of any committee they’re involved with. They’re UniParty RATs.
But to “pay for” slashing the corporate rate, they are proposing raising taxes on millions of middle class Americans. So.......
if more people understood how the budget process worked, they could not play these games.
There is NO Relationship between Spending and Taxes. ALL Taxes Received are used to pay off PREVIOUSLY Issued Treasury Bills. There is NO Discussion of Last Years tax receipts EVER in the Budget Process, it is Irrelevant.
100% of ALL SPENDING at the Federal Level comes from Freshly BORROWED Money from the Fed.
Tax Receipts from the previous year are never and have Never been part of the equation regarding the Budget.
These assholes hold a carrot out in front of the American people to make them think they are getting a BIG tax break. Ovomit care is already sucking down about 3k from my salary every year.
And now they are telling us we are going to get an average of 4k tax break? Pffft...
When it’s all said and done, we will all be lucky to buy an extra cup of coffee from the “tax break” our masters give back to us.
They can all go to hell!
And we get to pay interest to the Fed - each year (thank you Woodrow Wilson and the Satanic Globalists). What fiat money they spend (borrowed or raised in taxes) is a question of how you look at it. There are no serial numbers that trace what "money" is spent here, or paid to the debt interest (currently about 7%).
Republicans messing it up is a potential problem.
Johnny can’t read, and Jenny can’t write, so what the hell does 85 billion dollars go to?
I will believe it when I see it. Right now, based on what has been released so far and what's reportedly under discussion, my taxable income is going to be increased by a considerable amount. Tell me how that's going to result in a "much needed pay raise" for me.
Ok, if all of a US based corporation's core production is based off shore then where and on what does it spend this "repatriated" money? New vacations homes? Yachts? New carpet for the corporate office?
That is the problem with off shoring there is no wealth multiplier effect.
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