Posted on 10/23/2017 9:07:27 AM PDT by CodeToad
It is now time for all members of Congress — Democrat, Republican and Independent — to support pro-American tax reform. It’s time for Congress to provide a level playing field for our workers, to bring American companies back home, to attract new companies and businesses to our country, and to put more money into the pockets of everyday hardworking people.
President Donald J. Trump | Milwaukee Journal Sentinel | September 3, 2017
President Trump has laid out four principles for tax reform: First, make the tax code simple, fair and easy to understand. Second, give American workers a pay raise by allowing them to keep more of their hard-earned paychecks. Third, make America the jobs magnet of the world by leveling the playing field for American businesses and workers. Finally, bring back trillions of dollars that are currently kept offshore to reinvest in the American economy.
The President’s four principles are consistent with the goals of both congressional tax-writing committees, and are at the core of this framework for fixing America’s broken tax code.
Too many in our country are shut out of the dynamism of the U.S. economy, which has led to the justifiable feeling that the system is rigged against hardworking Americans. With significant and meaningful tax reform and relief, we will create a fairer system that levels the playing field and extends economic opportunities to American workers, small businesses, and middle-income families.
The Trump Administration and Congress will work together to produce tax reform that will put America first.
The Trump Administration, the House Committee on Ways and Means, and the Senate Committee on Finance have developed a unified framework to achieve pro-American, fiscally-responsible tax reform. This framework will deliver a 21st century tax code that is built for growth, supports middle-class families, defends our workers, protects our jobs, and puts America first. It will deliver fiscally responsible tax reform by broadening the tax base, closing loopholes and growing the economy. It includes:
- Tax relief for middle-class families.
- The simplicity of “postcard” tax filing for the vast majority of Americans.
- Tax relief for businesses, especially small businesses.
- Ending incentives to ship jobs, capital, and tax revenue overseas.
- Broadening the tax base and providing greater fairness for all Americans by closing special interest tax breaks and loopholes.
This unified framework serves as a template for the tax-writing committees that will develop legislation through a transparent and inclusive committee process. The committees will also develop additional reforms to improve the efficiency and effectiveness of tax laws and to effectuate the goals of the framework. The Chairmen welcome and encourage bipartisan support and participation in the process.
Over the last decade too many hard-working Americans have struggled to find good-paying jobs, make ends meet, provide for their families and plan for their retirement. They are the focus of this framework. Strengthening and growing the middle class, and keeping more money in their pockets, is how we build a stronger America. By lowering the tax burden on the middle class, and creating a healthier economy, we can give American families greater confidence and help them get ahead. At the same time, taxpayers deserve a system that is simpler and fairer. America’s tax code should be working for, not against, middle- class families.
Under the framework, typical middle-class families will see less of their income subject to federal income tax.
The framework simplifies the tax code and provides tax relief by roughly doubling the standard deduction to:
- $24,000 for married taxpayers filing jointly, and
- $12,000 for single filers.
To simplify the tax rules, the additional standard deduction and personal exemptions for the taxpayer and spouse are consolidated into this larger standard deduction. This change is fundamental to a simpler, fairer system.
In combination, these changes simplify tax filing and effectively create a larger “zero tax bracket” by eliminating taxes on the first $24,000 of income earned by a married couple and $12,000 earned by a single individual.
Under current law, taxable income is subject to seven tax brackets. The framework aims to consolidate the current seven tax brackets into three brackets of 12%, 25% and 35%.
Typical families in the existing 10% bracket are expected to be better off under the framework due to the larger standard deduction, larger child tax credit and additional tax relief that will be included during the committee process.
An additional top rate may apply to the highest-income taxpayers to ensure that the reformed tax code is at least as progressive as the existing tax code and does not shift the tax burden from high-income to lower- and middle-income taxpayers.
The framework also envisions the use of a more accurate measure of inflation for purposes of indexing the tax brackets and other tax parameters.
To further simplify tax filing and provide tax relief for middle-income families, the framework repeals the personal exemptions for dependents and significantly increases the Child Tax Credit. The first $1,000 of the credit will be refundable as under current law.
In addition, the framework will increase the income levels at which the Child Tax Credit begins to phase out. The modified income limits will make the credit available to more middle-income families and eliminate the marriage penalty in the existing credit.
The framework also provides a non-refundable credit of $500 for non-child dependents to help defray the cost of caring for other dependents.
Finally, the committees will work on additional measures to meaningfully reduce the tax burden on the middle-class.
The nonpartisan Joint Committee on Taxation (JCT) and the Internal Revenue Service (IRS) Taxpayer Advocate have both recommended repealing the AMT because it no longer serves its intended purpose and creates significant complexity. This framework substantially simplifies the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice.
In order to simplify the tax code, the framework eliminates most itemized deductions, but retains tax incentives for home mortgage interest and charitable contributions. These tax benefits help accomplish important goals that strengthen civil society, as opposed to dependence on government: homeownership and charitable giving.
The framework retains tax benefits that encourage work, higher education and retirement security. The committees are encouraged to simplify these benefits to improve their efficiency and effectiveness. Tax reform will aim to maintain or raise retirement plan participation of workers and the resources available for retirement.
Numerous other exemptions, deductions and credits for individuals riddle the tax code. The framework envisions the repeal of many of these provisions to make the system simpler and fairer for all families and individuals, and allow for lower tax rates.
The framework repeals the death tax and the generation-skipping transfer tax.
Small businesses drive our economy and our communities, and they deserve a significant tax cut. This framework creates a new tax structure for small businesses so they can better compete. Furthermore, America’s outdated tax code has fallen behind the rest of the world – costing U.S. workers both jobs and higher wages. In response, the framework puts America’s corporate tax rate below the average of other industrialized countries and promotes greater investment in American manufacturing.
The framework limits the maximum tax rate applied to the business income of small and family- owned businesses conducted as sole proprietorships, partnerships and S corporations to 25%. The framework contemplates that the committees will adopt measures to prevent the recharacterization of personal income into business income to prevent wealthy individuals from avoiding the top personal tax rate.
The framework reduces the corporate tax rate to 20% – which is below the 22.5% average of the industrialized world. In addition, it aims to eliminate the corporate AMT, as recommended by the non-partisan JCT. The committees also may consider methods to reduce the double taxation of corporate earnings.
The framework allows businesses to immediately write off (or “expense”) the cost of new investments in depreciable assets other than structures made after September 27, 2017, for at least five years. This policy represents an unprecedented level of expensing with respect to the duration and scope of eligible assets. The committees may continue to work to enhance unprecedented expensing for business investments, especially to provide relief for small businesses.
The deduction for net interest expense incurred by C corporations will be partially limited. The committees will consider the appropriate treatment of interest paid by non-corporate taxpayers.
Because of the framework’s substantial rate reduction for all businesses, the current-law domestic production (“section 199”) deduction will no longer be necessary. Domestic manufacturers will see the lowest marginal rates in almost 80 years. In addition, numerous other special exclusions and deductions will be repealed or restricted.
The framework explicitly preserves business credits in two areas where tax incentives have proven to be effective in promoting policy goals important in the American economy: research and development (R&D) and low-income housing. While the framework envisions repeal of other business credits, the committees may decide to retain some other business credits to the extent budgetary limitations allow.
Special tax regimes exist to govern the tax treatment of certain industries and sectors. The framework will modernize these rules to ensure that the tax code better reflects economic reality and that such rules provide little opportunity for tax avoidance.
The framework puts America on a level international playing field and puts an end to the incentives for shipping jobs overseas.
The framework transforms our existing “offshoring” model to an American model. It ends the perverse incentive to keep foreign profits offshore by exempting them when they are repatriated to the United States. It will replace the existing, outdated worldwide tax system with a 100% exemption for dividends from foreign subsidiaries (in which the U.S. parent owns at least a 10% stake).
To transition to this new system, the framework treats foreign earnings that have accumulated overseas under the old system as repatriated. Accumulated foreign earnings held in illiquid assets will be subject to a lower tax rate than foreign earnings held in cash or cash equivalents. Payment of the tax liability will be spread out over several years.
To prevent companies from shifting profits to tax havens, the framework includes rules to protect the U.S. tax base by taxing at a reduced rate and on a global basis the foreign profits of U.S. multinational corporations. The committees will incorporate rules to level the playing field between U.S.-headquartered parent companies and foreign-headquartered parent companies.
Again, for those repeating the lies of the liberal media, here is the official tax plan. The previous post I made was Trump's goals for a tax plan which were lied about in the lamestream media and repeated here on FR.
I reformatted the PDF from the Whitehouse to conform to FR's display. Again, your welcome.
Thanks!
Thanks.
How will our negative ones respond to this reality!
They’ll continue to parrot the liberal talking points that are lies and not contained within this plan.
Much appreciated. Thank You
“This is the Whitehouse version of Trump’s tax plan.
Again, for those repeating the lies of the liberal media, here is the official tax plan. The previous post I made was Trump’s goals for a tax plan which were lied about in the lamestream media and repeated here on FR. “
It’s all in the details, as usual. Most of these simple statements can be twisted any way the swamp dwellers want them to.
Simple enough, what he wants and what he gets will not be the same thing. He isn't Barak after all. </s>
The real problem is Credit Money
Back in 1963, President John F. Kennedy signed Executive Order 11110 which authorized the U.S. Treasury to issue debt-free “United States Notes” which were not created by the Federal Reserve. These debt-free notes began to be issued, and you can still find them for sale on eBay today.
http://www.presidency.ucsb.edu/ws/?pid=59049
By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:
SECTION 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended —
(a) By adding at the end of paragraph 1 thereof the following subparagraph (j):
“(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821 (b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption,” and
(b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof.
SEC. 2. The amendment made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.
JOHN F. KENNEDY
THE WHITE HOUSE,
June 4, 1963
Seems well thought out to me.
Let’s see what objections Chuckie has this time.
This is good stuff!!!
Well when Congress passes their tax plan then we'll have to see just how close they came to the "official tax plan". If it's like health care then Congress' plan didn't look anything like the "official health care plan".
“Well when Congress passes their tax plan then we’ll have to see just how close they came to the “official tax plan”. If it’s like health care then Congress’ plan didn’t look anything like the “official health care plan”. “
i agree 100%.
So if you are middle class with no dependents.. increase for you. More people getting paid instead of paying in via the deductible increase and tax credit increase.
No wonder it’s a bill congress supports with chuck n Nancy... it’s more of the same for the middle class. Spenderiffic unless your middle class without dependents then it’s a burden.
I do like the simplification, but the math boils down to middle class supporting everyone with the most percent of their income.
“So if you are middle class with no dependents.. increase for you.”
Decrease. Where did you get an increase?
Current standard deduction: $6,300. New plan: $12,000.
Do you know how the standard deduction works? It means you do not need to itemize up to $6,300. You get that immediately. If you have more than that in deductions, then itemize beyond that.
“The real problem is Credit Money”
let’s keep this thread to the tax plan and no hijack it into fiat money discussions. Try to stay on topic.
We watched our 2 granddaughters all of last week, and I am admittedly out of the loop as to any news. But I noticed over the weekend that all of the MSM was saying that POTUS intends to eliminate 401(k) accounts, and that is how he will pay for the “tax cuts” that are forthcoming.
Is there any truth to this?
“This is good stuff!!!”
It is very good stuff. It’s a start to reducing our tax burdens from the money we pay to the paperwork we must endure.
Of course, we have to see what comes out of congress and gets signed by trump, but we haven’t seen ANY Republican or Democrat president support such things, only with Trump.
Five hours ago he tweeted:
"There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!"
If you want to know what Trump says, then all you have to do is read his tweets. No Twitter account needed.
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