Posted on 02/05/2016 9:22:38 PM PST by JSDude1
With the first real votes being cast in the presidential race Monday, this is an opportune moment to do some last-minute comparison shopping on the candidates' tax reform plans. On this issue there's a lot to cheer about. All the Republican candidates have crafted plans that would slash tax rates for everyone and most would vastly simplify the thousands of pages of IRS tax code.
Ted Cruz and Rand Paul have endorsed flat-tax plans that, for full disclosure, were designed by Arthur Laffer and myself. These plans have drawn some criticism from the Right of late, though these attacks are mostly baseless.
Ben Carson wants a low-rate flat tax, too, and he would heroically eliminate all special interest deductions and carve-outs. Mike Huckabee is pushing a national sales tax to entirely replace the income tax. Jeb Bush, Chris Christie, John Kasich and Donald Trump want to cut personal income tax rates 20 percent to 25 percent while eliminating indefensible loopholes.
One common goal of nearly all these plans is to turbocharge growth by dramatically lowering the business tax rate (now the highest in the world) and reducing the punitive double taxation of investment income. Most GOP plans would cut the corporate/business tax to 15 percent to 25 percent.
(Excerpt) Read more at townhall.com ...
They all stink. Badly.
All the rest are just tweaking the status quo.
It's not because of the average taxpayer that we have a 70,000+ page tax code. Business and the very top income brackets won't stand for anything that might reduce their benefits. They will fight all these plans to the death.
This one puzzles me does it mean both or just charity, “Except on mortgages interest and charitable deductions, but implement a $10K standard deduction”
Most of us don’t have $10K to donate to charities. Even with tithing, St. Jude’s, and Veterans donations, we do well to do $1500 per year. House will be paid off in 5 yrs. With the medical deduction rising under Obama we can’t even claim that. We are Seniors on fixed incomes. Medicare and Tricare Life take care of most medical except dental, vision, and some test and equipment. Even with Co-pays and travel we don’t meet the current rate. Barely made the old. We now file short form.
There is lies the rub. Any of these plans will likely raise your income taxes. It’s likely over half the people in the country, the bottom half of the earners, will see their taxes go up under any of these plans. How popular do you think that will be?
If a tax is border adjustable, it means two main things...that taxes on goods manufactured domestically have no tax costs in them at export and that imported goods will have our federal tax added to it.
Our US income tax is not border adjustable (WTO rules) but most other countries that export to us do have border adjustable taxes (Japan, China come to mind but I’m not an expert).
The results are predictable; the US market is a gold mine...sell your stuff in the US and pay no tax on the item. So Toyota for example has a lot more room in profit to play with than Ford. In that example, Toyota is making “double” (not double in quantity but you get my meaning) profits...
So to your question, if we had a border adjusted tax system, Toyota would have to absorb tax costs on the cars they sell here. That will either make their cars price higher to absorb the tax costs or they decrease profits to absorb the tax costs or more likely there will be some combination of both.
In any case the good far outweighs the bad IMO.
re. your tax plan pictures. What is this “cost of tax plan” stuff I keep reading about?
Think of it like this, the more the tax plan costs, the more it makes liberals cry. I think it’s actually how much it is projected to raise the debt but keep in mind, Obama doubled the debt and pretty much raised all our taxes. $10 trillion in new debt and we didn’t get a tax cut.
Not popular especially with low or fixed income earners. My youngest son is single and falls in that category. Oldest is getting divorced 1 child and it would effect him too. We are Fixed income both SS age with his Military Pension, which is subject to Congress for a COLA raise. Half of which usually goes to Medicare, and our Tricare Life Co-pays go up too. Since this is not a first marriage for either of us 2 remarried widowers, I don’t qualify under to any portion of his Navy pension. Our taxes went up this year to boot. Property taxes go up this year.
All I see is more out going income than incoming. Food cost are a big issue. The reduction in what were covered care by Medicare/Tricare Life is another issue. They charge more, deliver less.
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