Posted on 09/28/2017 11:26:12 AM PDT by Mariner
President Donald Trump's top economic adviser, Gary Cohn, said today that he can't guarantee that taxes won't go up for some middle-class families under the administration's sweeping tax overhaul.
"There's an exception to every rule," Cohn told ABC News chief anchor George Stephanopoulos in an interview on "Good Morning America."
"I can't guarantee anything," said Cohn, the director of the White House Economic Council. "You can always find a unique family somewhere."
He said Trump's plan is "purely aimed at middle-class families." But Cohn acknowledged that "it depends which state you live in."
"A typical family of four earning $55,000 in America today is going to have a substantial tax decrease," he said, adding that its taxes would decrease by $650 to $1,000. "Everything we have done in this tax plan is to solve for the middle class."
(Excerpt) Read more at abcnews.go.com ...
I’m not sure I buy that entirely. High tax states are high tax states in part because they are bigger and more complex. They are also high cost of living states. I’m entirely impressed with the great successes in the South Dakota where oil and gas money has made everyone rich and the governor is responsible for maintaining two roads and six state police officers. (A gross exaggeration but you get what I’m saying).
If we were building a tax system from scratch, I would totally agree with not permitting the state and local deductions. But you have literally tens of millions of people who have built their entire family budgets around these tax concepts. I would think a change like this would need to be implemented over something like a decade.
Because as fun as it sounds to punish the blue states, tanking the economies of CA, NY, NJ, and IL is not good for anyone.
Again, I’m in Texas - a state which for all its good points, can’t balance its budget, has an outrageous sales tax, and high property taxes.
We will see. I know what my taxes have been, and my income hasn’t increased.
If you’re in Colorado, you are probably paying more in state and local taxes than I am. So, by your logic, I’m subsidizing you.
Get a job, hippie!
And yes, re Trump, that IS all he cares about; lowering the corporate tax rate. Ergo...this IS not what he claimed he wanted/was going to do.
This outline is the antithesis of what Trump talked about on the campaign trail !
I and a few others here, who DO understand this outline and economics, are attempting to explain what's wrong with this, vis-a-vis what paltry info is out there; some of which isn't even so.
There is NO WAY that I'm getting the supposed "tax cut"; I'm getting a whopping tax INCREASE! But since YOU are SOOOOOOOOOOOOOOOOOOOOO certain, that, as things now stand, I'll be getting a tax cut, then YOU pay for my state tax, property tax, and give up your mortgage deduction !
Their healthcare bill tinkered around the edges of what the Democrats have done. Their tax reform will just tinker around the edges of what the Democrats have done.
I wish for once Republicans had balls at least the same size as Democrats. If they did they would do a couple of real reform bills.
Til then were stuck with the same old BS. I don’t even look at their touted bills anymore because I always know it’s the same old BS.
Trump talked about everything on the campaign trail. Bannon was floating a top tax rate of 40 percent.
Here is my defense of Trump as a politician: you can never accuse him of lying, because he has promised everything and is bound to deliver on a part of that.
Having said that, there are a few things he was obviously more serious about than others: the wall, the corporate tax rate, and trade. Those felt like the three things that he actually cared about and actually had specific ideas on.
Whatever this bill ends up as, as long as the corporate rate is in the low 20s, he will see it as a massive win.
What’s your state income tax burden?
If the Bill has taxes going up for anyone it is a bad Bill!
5%
how will it hurt the sole proprietor and S-corp people?...just asking because my husband and I are both (2 businesses). Just trying to understand..
S-Corp probably OK as ALL income will pass through at the 25% rate.
But you will lose all state tax deductions.
Sole Proprietor is likely screwed. All that income will be treated as personal income...up to the 39.6% limit.
And you still lose all your state tax deductions.
Friggin’ ouch.
A subsidy is a PAYMENT.
If they take less of your money it is NOT A PAYMENT.
Sheesh. It’s not their money, it’s yours.
Get a clue.
Here’s the good news!
Between CA, NY and IL, alone there are 30 Republican members of the House.
If only 24 of them hold out, and they WILL, the state deduction will be preserved.
There is No way the GOP can pass this without the 30 reps. And all of them are certain to oppose it.
You cannot be a GOP rep in one of those districts and support a 20% effective tax increase.
Pure suicide.
He also was very strident, on the trail, about a few other things...some of which he has do via EOs.
Which is WHY this outline is awful and both House WILL make it worse! Though yes, it all goes down in flames, if the deduction for state deductions is kept in. It’s a very BIG poison pill!
It’s safe to say that the entire CA, NY, NJ and IL delegations will vote no. And with TX being the 4th largest recipient of SALT, they’ll have a hard time picking up those votes too.
Republicans and Democrats. They will oppose it in unison, a single voice. And I am certain there will be no defections on something that hits every one of the constituents, and hard.
It’s going to be at least amusing to watch Ryan try to put together a majority without them.
This plan is not DOA. It’s already dead and it hasn’t even arrived.
If middle class taxes go up Trump shouldnt even bother running in 2020. Very few of his 2016 base will come out and vote him.
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