Posted on 10/02/2017 5:57:59 PM PDT by Mariner
To cut taxes on businesses, middle-class families and the wealthy, President Donald Trump’s tax plan relies on the elimination of key deductions that cost the federal Treasury many billions of dollars each year. Getting rid of those giveaways, in theory, will provide new federal revenue that will help offset the revenue loss that will come from lowering rates.
In principle, tax experts support the idea of a cleaner tax code with lower rates and fewer ways for people to reduce what they owe. But tax breaks tend to be popular and notoriously hard to roll back once they’re in place. And the biggest tax break Trump wants to kill — the deduction for state and local taxes, known as the SALT deduction — might just be impossible to kill.
Republicans have targeted the SALT deduction for elimination for a couple key reasons. First, it costs Washington roughly $100 billion per year in foregone revenue — a large sum that would provide a lot of headroom for other tax cuts if captured. Second, the SALT deduction disproportionately benefits residents of blue states that tend to vote Democrat. So taking it away would affect Dems more than Republicans. That supposedly makes it one of the safest ways Republicans who control Congress and the White House can effectively raise taxes on some voters, while suffering minimal electoral harm.
This is lousy logic, however, and a closer look at the numbers reveals a giant flaw in the strategy of placing the burden of tax reform disproportionately on residents of Democratic states. The SALT deduction doesn’t benefit Democratic states more just because they’re blue. It’s simply more popular in states with higher incomes ...
(Excerpt) Read more at yahoo.com ...
They need just the 9 plan. Hate to see accountants and tax prepairers lose their jobs but oh well. They don’t produce anything anyway.
What we produce is what is extracted from the ground (petroleum, minerals, sun power and water). Everything else is just passing money around.
This is a negotiable item I am sure. I do not think Trump ever thought that this would survive.
Those so gleeful at the prospect of soaking the Blue States.
The pain will not be in the Moocher class (the Democrat voters) but on the more conservative filers, people like those here. They, for the most part, have not voted these taxes in. That is almost entirely the work of the Moocher class (non-taxpayers) always ready to vote for higher taxes to be paid by others.
Arthur, what is on the table is what we get. It can be tweaked, and I believer there are several places this should be tweaked.
None the less, if those tweaks take place, we’re okay.
It may not be the plan either of us wants, but it is a plan and it could be implemented in months.
I will accomplish pumping more money into the private sector, will spark economic activity, and will approach the doubling of the federal government’s tax receipts over a few short years.
My big concern right now is the federal debt. We have to start paying that down. This can get us to where we can.
I believe there is a tax form credit card being considered along with this.
BTW: I have advocated for small businesses to get the same 20% ceiling that corporations will be getting, if reports are accurate.
I have no problem that 20% going across the board.
Nope, Your time = value (assuming your are actually productive)
“provided” should be “CAUSED”.
Why should I pay for all your local and state taxes AND your interest deduction on your bloated mortgage.
Seems like you are the SJW.
Nope, Your time = value (assuming you are actually productive)
Anyone with any degree of complexity will not be able to put it all on one page. It would be good for the average tax-payer.
Those with rental property could not possibly use one page. Nor could those with stock purchases and sales and carryovers.
When you speak of one page just how many lines will that be?
Removing the property tax and interest deductions would collapse the Real Estate market just for starters.
Doc, I worked real hard getting my family in PA to go Trump. The fact is and I continuously tell them all you watch is negative news. Trump is doing all he can do.
Trust me Congress will fail on this tax issue I assure you.
The R house and Senate is failing our President monumentally and intentionally.
Or me for your kids, or wife. If what you say is true, you have claimed many 10s of thousands in deductions over the years.
How would thing be now if you could not?
There are hundreds of deductions for individual filers.
Eliminate them all and the tax increase would be the highest in history.
Is that what you want? Higher taxes?
One sector does not an economy make. Certainly raw materials don’t or even come close.
Why should taxes be taxed? There is no justice in that.
Simple. I’m not a defeatist troll like you.
I don’t doubt it.
By rights, the long term party members in Congress should be sending something incredibly good up to Trump. Instead we get these Leftist pipe dreams.
They say they believe in tax cuts for the same reason Trump does, but then they toss in things to pay for them.
Tax cuts pay for themselves. These helpless boobs don’t know squat.
It might just re-collapse the speculative housing market. You know, those 3% interest rates (where I heard radio ads of a company allowing (ahem) 1% DOWN PAYMENT on a home.
you making it more complicated than you think. The stock co sends u a paper about at this tou bought and at this u sold at this. Yep, that is your profit. The management co send u a paper u spent X, this is your return, there is your profit/income. You wish to play all the deduction games. I wish to do away with them all. This is a free market capitalistic economy isn’t it, or do u wish communist to tell you u what, where, and what to buy or sell. Which is it.
Yahoo is left leaning and anti-Trump.
You don’t think reducing the corporate taxes will result in increased returns to (the itemizing) investors?
If your view is that corporate taxes don’t hurt investment returns then tax companies 100% and give deductions to everyone else for everything.
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