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 ...
Because their joy over this closed deduction surely cannot be related to their hatred for CA and NY commies.
The only plausible explanation is their resentment and hatred of those that make enough money to itemize.
See the chart in the article.
Moron.
IMO < anything that cuts off former tax credits, is a mistake.
We want to add to former deductions, not subtract them.
The idea is to put as much money as possible into the private sector to jump start the economy.
Investments, increased sales, increased work force, massive new tax revenues for the federal government, that is the goal.
Whittling little parts of the increased private sector money, does not serve us well reaching the desired goal.
This shouldn’t be an us against them situation folks. We want everyone to get tax cuts. That way the economy will get the maximum boost.
I am of the opinion that the states should decide for themselves how best to collect tax revenue to pay their federal tax bill.
Use representative apportionment - divide the previous year’s spending by the number of senator and representatives to get to a per senator and per representative cost. That cost is then calculated by the number of senators and representatives for an individual state. That tax bill for the state must be paid from state tax revenues before the state can spend money on state salaries or other state programs.
States are then free to decide for themselves how to collect taxes.
That’s crap. Get rid of all the deductions. Get a flat tax and I’ll file on a single page.
I’ve believed for many years any benefit provided by your employer or your business be included as income including heath benefits, gym, golf clubs etc etc
No deductions except standard and single or family and a flat tax, maybe progressive with 3 levels.
All income including capital gains should be income.
I want my tax return 1 page front only and legible enough that normal people can fill it out themselves.
You guys just have trouble with the truth.
As all social justice warriors do.
I’m baffled as to how you have survived here as long as you have.
A journalist for Yahoo with no known credentials except he worked in DC reporting on defense.....you bet that’s my go to guy
“All income including capital gains should be income.”
That’s because you’re a commie with deep resentment toward those who have earned enough to be comfortable.
“A journalist for Yahoo with no known credentials except he worked in DC reporting on defense.....you bet that’s my go to guy”
It’s apparent you didn’t read the article nor view the chart.
Actually, I earned more than enough to retire at 46, 15 years ago and still being blessed with an outstanding life and am very comfortable.
Trust me each night as I ask God to forgive me for my sins I always thank gracefully for the life I’ve been given. Especially having grown up in a large inner city Irish Family.
God truly is fabulous I assure you, you 20 year troll.
First the Communists slap high tax rates on high incomes. Forever after, all attempts to reduce those exorbitant rates are “tax cuts for the rich.”
And the Commies always discuss tax reductions entirely in terms of how much the government is “giving” people by reducing tax rates.
Heck, I LIKE subsidizing everyone- including the rich!
“My money belongs to everyone.” That’s my motto.
For you to call me a troll is prima facie evidence you are stupid.
Complications in the tax code cost billions of dollars in effort, documentation, calculations, and just plain money. And the idea is NOT to “put money into the economy.” You could do that with helicopters. What produces more wealth-production is low marginal tax rates.
The tax code should require the absolute minimum in record-keeping and every other kind of cost.
Tax rates should be low, lower, and lowest.
Trump should be demanding a maximum income tax rate of 20% or even less.
Why can’t Trump bring back the 9/9/9 plan?
“Morons with no core principals if they are on favor of double taxation because they think it hits democrat and those making over $100k the most.”
I don’t believe them to be morons, necessarily.
Mostly I believe them smart and calculated in their pursuit of Social Justice.
yea OK, Mom says after all these years you need to move.
Moving will not solve my tax problem.
Ending this talk of ending SALT will.
Assets sold need to be adjusted for the (actual, real) inflation (tax) provided by the Feds over the period the asset was held. Anything else is THEFT!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.