Posted on 11/03/2017 9:40:15 AM PDT by mtrott
House Republicans claim the tax plan they introduced Thursday keeps the top individual rate unchanged at 39.6 percent—the level at which it’s been capped for much of the past quarter-century. But a little-noticed provision effectively creates a new band in which income is taxed at over 45 percent.
(Excerpt) Read more at politico.com ...
We can’t have it both ways, folks. We elected a president who was very much a populist, not a conservative — and who would probably sign half of the items in the Democrat Party’s platform from the 1970s into law.
Keep the 20%, should be 20% for all, and scrap the rest.
Not line item veto but almost every part of the tax reform should be a separate bill.
The GOPe want their corporate tax cuts and need to “pay for” them.
Amen. But didn’t we say this during the campaign?
The tax bill is ok, and great in some respects ( business tax). It needs to be passed.
Here’s how it would work: After the first $1 million in taxable income, the government would impose a 6 percent surcharge on every dollar earned, until it made up for the tax benefits that the rich receive from the low tax rate on that first $45,000. That surcharge remains until the government has clawed back the full $12,420 [the new standard deduction], which would occur at about $1.2 million in taxable income.
They're basically reducing/eliminating the standard deduction on taxpayers who earn more than $1 million.
The impact of this change is likely to be negligible. I suspect most people in this income range are smart enough to figure out how to avoid paying even the 39.6% tax, let along the "effective" 45%.
“The GOPe want their corporate tax cuts and need to “pay for” them.”
It HAS to be revenue neutral to the joke of an almost budget they passed last week.
That way they can pass the “tax cut” (LOL) via reconciliation with 50 votes plus Pence in the Senate.
“It needs to be passed.”
Would you be as anxious for its passage if YOUR taxes were going up by several thousand dollars per year?
That’s what is going to happen to several million middle class taxpayers on the coasts. You know, the people that are already supporting the federal government.
My taxes will go up. I live in CA and pay substantial state taxes.
But good policy is good policy. There is no reason why the rest of American should subsidize CA.
You mean all those people with government jobs that create the appearance of blue states paying more in taxes than red states?
“There is no reason why the rest of American should subsidize CA.”
That’s Stockholm Syndrome.
CA Taxpayers pay more federal income tax than any other state, both in total and per capita.
Additionally, the CA taxpayer sends more money to DC than comes back from DC in Federal expenditures of any and every kind. The same can be said of New York and New Jersey.
These three states subsidize most of the other, red states.
Edify yourself. And quit feeling guilty for getting raped.
Terribly unfair and destructive. Many small business owners are targeted with this bracket. These people create jobs, yet this high tax rate, combined with Obamacare, legal liabilities, enormous state and local taxes, plus normal economic risk remove any incentive to invest, grow and hire.
Taxes are very high in CA. Trust me. They are high because CA is a failed state. Why should the rest of you pay for it?
If Blue state voters want to be governed by Dems, let them pay for it.
The people elected him, not the Chamber of Commerce. There’s nothing left to conserve, the baby boomers gave it all away.
Now it’s time for a strong does of pragmatic nationalism.
As a strict purist, Rush is of course correct. But how about we get the tax code onto first base before we start railing against it and hope the follow-up tax bill is smaller and makes philosophical changes as well.
This tax plan isn’t great, but it is workable in the sense that there will be modifications made. My fear is that, like repeal of Obamcare, everyone will get all knotted up and nothing will happen — again.
CA is already a huge net payor of federal taxes. This just increases the amount we subsidize everyone else.
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