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 ...
Sounds like you will be an angry looser tax slave if this goes through.
Trump does need to be careful to not loose too much voter support though.
Get back to us when you are prepared to make a cogent argument.
+1
Sounds like you will be an angry looser[sic] tax slave if this goes through.
Trump does need to be careful to not lose too much voter support though.
Don’t be silly, not about money anyway.
A grand in lost deductions may mean an extra 10 grand in investment profits. (Not likely!)
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?
Xxxxxxxxxxxxxxxxxxxxx
Hard to swallow a “tax cut “ program that raises the bottom rate from 10 to 12%.
Lotta tax payers won’t understand increasing the exemption & eliminating tbe deductions
Optics for pelosi & co. easy to sell: 12 > 10
Good point.
It will be a test for Trump—getting millions of people to understand that their tax rate is not rising to 12, but dropping to zero.
But people will not pay more, because the standard deduction, etc., will be doubled. The marginal tax rate will increase, but the amount paid will drop.
You never once paid a single penny on my behalf and neither has anyone else the the country or the world.
I have paid more than $20k in Federal Income Taxes every year for over 30 years.
I likely support your freeloading, retired ass.
You’re trying to invent a plausible reality, but everyone here knows exactly where you are coming from and what your intent is.
Vengeance against those who have.
Enjoying the ministrations of our lovely Mariner, are you?
Oh, I don’t want this thing as written. My hope is that Trump structures the elimination of exemptions in a way that disproportionately impacts CA. Find a characteristic that applies only to or primarily to CA taxpayers and make the elimination of exemptions hinge on that.
This is not your fathers Russia
Russia Personal Income Tax Rate 2004-2017
The Personal Income Tax Rate in Russia stands at 13 percent.
Personal Income Tax Rate in Russia averaged 13.00 percent from 2004 until 2016, reaching an all time high of 13.00 percent in 2005 and a record low of 13.00 percent in 2005.
Far too many independent variables involved for me to buy into that fabrication.
I wasn’t talking about Russia. I was talking about the Communist government of the United States.
Yes!
The individual citizen should never see a “federal form” or talk to a “federal employee.” Or pay a penny to the federal government.
I’ll pay more because 7 personal exemptions would be eliminated - and they want to raise the rate on the bottom bracket.
I do believe the standard deduction and child deduction will be doubled.
Same way they do now--it is a business expense and is deducted from gross business income. Somehow, I don't see that changing, and if it does, I predict tenants across the country howling because their rents will go up to pay for increased taxes.
Way too many swamp-dwellers own rental property for that to happen.
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