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 ...
Manufacturing and agriculture create wealth also. Importing and retailing, not so much,
Just for Californians. Guess I just like the idea of seeing traitors and secessionists being brought to heel...
Still dodging the issue. Rental property, S corporations, expenses for businesses and stock transactions make a one page return impossible. Maybe you think the IRS is going to just take your word for it.
Tariff can’t fund the military.
I said a tariff plus a sales tax. I would also keep the payroll deduction as they are until social security and medicare can be addressed separately.
Those who serve the market create wealth. The Division of Labor creates wealth all along the way. In fact, every new division in the labor change creates wealth because it makes the market more efficient.
You really believe that retailing creates no value? Of course it does since a wholesaler with a warehouse full of a commodity sells it to a specialist, the retailer, who sells it for far more than if he tried to own his own. The difference between what the wholesaler could sell and the sale of the retailer.
How does imposition of a massive sales tax not collapse the economy?
Which is why I don’t understand the thinking behind eliminating exemptions for dependents.
I’m going to have to cut way back to afford the extra tax burden.
As a Conservative stuck living in a Blue State (Illinois) I fully support a FLAT TAX that EVERYONE pays.
Stop this nonsense that anyone below a certain dollar amount a year pay NOTHING. Either EVERYONE has skin in the game or NO ONE has skin in the game.
Everyone pays, no exceptions.
They could just stop trying to tax all of that way more complicated investor stuff....
“You don’t think reducing the corporate taxes will result in increased returns to (the itemizing) investors?”
It should.
That’s why I support 0% corporate tax.
But that has nothing to do with individual deductions nor net taxes paid by individuals.
And yet they raise the lowest bracket from 10% to 12%.
Some “tax relief”
Income tax is partial slavery. Many hours of your labor ech year are due the Feds. If peeps are not earning money, they should have to put in 0.4 x 40 hr/wk = 16 hours of their labor per week for the benefit of the gov't. That would be fair.
Here it does. The loss of deductions is tied to reducing the corporate tax.
“Just for Californians. “
North Carolina has a higher percentage of people claiming these deductions than either CA or NY.
It’s apparent you did not read the article.
State percentages really don’t tell the whole story. The total amount of revenue to the Feds counts way more.
I would not touch SS and MC, that is the biggest part of the budget so they would be funded by a parole tax. So the tariff and sales tax would have to add up to $1.5 trillion, not hard at all.
The issues of SS and MC would be separated from the general revenue which is another great by product of ditching the income tax.
Deny, Accuse, Reverse Victim and Offender.
“The total amount of revenue to the Feds counts way more.”
Counts, for what? Social Justice?
For your prurient pleasure in who gets hurt? Vengeance?
For the individual taxpayer what really counts is their net tax.
Oh, an they count as their mortal enemies those who advocate for and enable an increase in their taxes.
“The loss of deductions is tied to reducing the corporate tax.”
Only because the Social Justice Warriors WANT to link them.
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