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 ...
Love your tag line!
Excellent point Sam. A lot of wasted energy and brain cells were used panicking over fake rumors.
“tell me again why I should feel bad for the poor rich people?”
Point out where I asked you (whoever the heck you are) to feel sorry for rich people?
The vast majority of the rich are not rich because of their hard work but because they have wealth which is inherited. In other words they did not earn it through incomes.
How does this Congress pass a perfect tax bill with the Dems sabotages everything?
You act as though the Gop is all conservatives. It isn’t.
I have no problem with reasonable corporate taxes. IIRC, there is no original intent type constitutional argument about taxes by corporations. There is a problem with personal income taxes from the same perspective. I am all for slashing spending, but if we are hitting only the taxation side of things, my vote is for tariffs and excises to replace the personal income tax.
Or, they've completely given up on trying to counter decades of Democrat lies with facts, and now think maybe it's time to throw in the towel and give the dumbed-down, willfully-ignorant American sheeple what they want ("social justice").
Every time some politician tries to sell that "file your tax return on a postcard" B.S. people need to realize short of a constitutional amendment, it's never, ever going to happen because the tax code isn't about revenue, it's all about politics.
My point is that they are not conservatives. They are comfortable with Marxist tax brackets, favors, kickbacks, etc.
Forget democratic opposition. The RINOs themselves are the biggest barrier to Trump’s agenda.
And that is what is sad.
They make conservative noises to get elected, but govern as socialists.
Democrats and Republicans are two cheeks on the same ass.
“The vast majority of the rich are not rich because of their hard work but because they have wealth
Any sources for that? Somewhere alone the way I read it is closer to 33%, if I’m remembering accurately.
“Capital in the Twenty First Century” by Pikkety is the source. This is an exhaustive study of the US, UK, France and occasionally Germany property and income statistics on Income distribution and Wealth distribution. These are things generally neglected by economists.
It is a difficult, because of the statistics, and a long read and very depressing but worth it. It will provide the Left with dangerous economic and financial arguments backed by this data in the years to come. Twenty per cent of income goes to the top 1% with about half the population barely scraping by. It need not be said that such a situation is politically very politically explosive.
According to this source about 1,500 billionaires own close to 40% of all private wealth. Occasionally a new member joins this group i.e. Bezos, Gates. But the basis of actual wealth is the rock of inherited wealth. It is consistent with the numbers from the rest of the world.
All true but these cozy arrangements just had a MEGA ton bomb go off in them as of 11/16.
That is no longer true. All those factors have been declining as portion of the economy.
It is ludicrous to claim that increased Health Care does not contribute massively to the economy.
“Pikkety is the source.“
Poor, and liberal, source...
False too.
Right on every point.
Almost 40% of wealth is owned by around 1500 people. The lower 50% own about 5%.
Lower tax states do not “subsidize higher tax states.”
In fact, the flow of federal taxes goes the other way and Red states are net recipients and Blue states net losers.
The Wealthy are wealthy primarily because of income from inherited capital. They can earn about 2% more per year than the ordinary rate of return on capital. Around 70% of total income of the rich comes from income from capital.
There are two economies in this nation. One operates under Free Enterprise and competition, and the other is Monopoly Capitalism which competes by different rules including bribery of politicians.
Trump is not writing this tax bill but he is not going to veto it if the top rate remains the same in order to get a bill passed. Sixteen hundred people in the Super Rich versa hundreds of millions is an easy call.
Mixing morality with politics does not go anywhere.
This is a political issue and has nothing to do with “fairness.”
Tariffs and excises would not come even close to funding a government that has the military committeement this nation has.
He admittedly is liberal but his conclusions are hard numbers. What is false?
Then we need to reduce military commitments.
The military budget, including intelligence, should be set to a maximum of corporate income tax receipts. Any “police actions” or non-declared wars are unconstitutional anyway, so big $$ savings there.
The Republic is being systematically torn down by a combination of welfare and warfare state. It needs to end.
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