Posted on 11/28/2017 8:45:01 AM PST by Oshkalaboomboom
We've written several pieces debunking unfair and inaccurate attacks on Congressional Republicans' reform package of tax cuts and simplification -- from confronting bogus claims about healthcare, to swatting down supposed sweetheart tax breaks for private jet owners, to exposing scare-mongering about fictional middle class tax hikes. In addition to dispelling false information, we've also tried to highlight bona fide selling points of the proposal, showcasing independent analyses projecting that reform would boost US economic growth and create close to a million new full-time jobs. Another crucial point is that the fact that those taxpayers who currently take the standard deduction (~70 percent of all filers, a number that will grow substantially) stand to be immediate winners under the bill, as that deduction would approximately double. Mitch McConnell addressed that element of the plan in a Monday floor speech, which set the stage for a highly-anticipated upper chamber vote in the coming days:
"Our plan doubles the child tax credit, preserves the adoption tax credit, and roughly doubles the standard deduction to reduce how much income is taxed in the first place. Put it all together, and a typical middle-class family of four making the median family income could see a tax break of around $2,200. As families sit around the table to balance their budgets and plan for their future, this money will make a significant impact."
It's worth pausing to acknowledge that it would be wrong for Republicans to adopt the Democrats' approach to Obamacare by lying to the American people about the impacts of their legislation. The Left mendaciously pretended that there would be no losers under their scheme, which was thoroughly refuted by reality in short order. It's true that a small percentage of households and taxpayers -- disproportionately high-income itemizers living in high-tax blue states -- will face higher bills under the GOP plan. But the overwhelming majority will see a tax cut, with multiple nonpartisan reviews determining that on average, every income group would see their tax burden decrease under the House-passed bill. So what to make of Democrats' go-to line about the Republican plan raising taxes on millions of middle class families in a few years? This claim (repeated by the press, of course) relies on analyses of the Senate bill, under which the new, flatter, lower individual rates would expire after 2025. Thus -- on paper, at least -- a large "tax increase" would be scheduled, barring additional Congressional action.
But it's essential to point out that the only way this potential "tax increase" would actually occur is if Democrats force it to. Republicans would be on board to renew the tax cuts, especially since they're geared toward middle-income households (millionaires' Obama-era marginal tax rate of nearly 40 percent remains untouched under the GOP proposal). Democrats would therefore be the only ones standing in the way of ensuring that those expiration-caused hikes never see the light of day. If they chose to block the renewal, they would be consigning millions of working families to the sort of tax increases they swear up-and-down that they oppose. Because of those exact same dynamics, more than 80 percent of the Bush tax cuts were made permanent under President Obama. That's a highly relevant historical data point in this debate.
Remember, the whole reason the Senate bill includes a tax cut sunset clause is to comply with "reconciliation" rules, as required to pass budget-related legislation with a simple majority. If Democrats truly wanted to give middle-income families permanent stability and certainty on tax rates, they could play ball and not filibuster tax reform. They could provide the votes to make the new middle class tax cuts permanent, vitiating the need for Republicans to play around with budget windows on procedural grounds. Instead, they're digging in their heels to oppose the entire Trump agenda (even opposing pro-competitiveness corporate tax cuts they once supported) -- then exploiting the limitations imposed by their own tactics to launch misleading attacks about the Republican bill "raising taxes" after 2025. That may be cynical (yes, this obviously isn't the broader tax bill they'd prefer, but they've lost a lot of elections), but it's also how politics works. It's up to the other side to challenge quick, scary soundbytes with facts and context. I'll leave you with an excerpt from a letter written to the Treasury Secretary by a group of respected economists and academics, which is quoted in a pro-reform Wall Street Journal editorial:
The present debate over tax reforms proposed by President Trump’s administration and embodied in bills that have passed the House of Representatives and the Senate Finance Committee has raised the basic question of whether the bills are “pro-growth”: Would the proposals raise current and future economic activity and generate federal tax revenue that would reduce the “static cost” of the reforms? This letter explains why we believe that the answer to these questions is “yes.”...You have consistently stressed that the objective of tax reform should be to enhance prospects for increased economic growth and household incomes. We agree with this objective, which is consistent with the traditional norms of public finance going back to Adam Smith. We believe that the reforms embodied in the House and Senate Finance bills would achieve this objective. The increased growth, in turn, would lead to greater taxable income and federal tax revenues, which would reduce the static cost of lost federal tax revenue from the reform. And here's John Thune, a member of the Senate GOP leadership team, predicting on Fox News Sunday that the Senate bill will pass:
It's crunch time.
I’ve already done that. What I want to do is have the video show up in the post so all you have to do is click on the play button.
There was an article yesterday about hedge fund managers in NYC who are doing just that! Going to Florida. They are going to save $20,000 per year or more!
“get some state income tax reform done”
Are you kidding? How would we pay the illegals here in CA the billions and billions of dollars we spend on them if we don’t collect enough state tax?
Not only is it NOT tax reform, the fu@#%kers yesterday said that, if they run a budget shortfall, that will AUTOMATICALLY trigger a tax hike!
What is should trigger is the automatic firing of every single azzhole who votes for this monstrosity.
I want my own personal trigger like that —> “Boss, we are running over our household budget this month. I want to invoke my automatic pay raise trigger to cover our shortfall.”
No argument here. The SIMPLE solution is for those GD bastards in Washington to shrink the stinking fed gov't. If it were back at 15% of GDP we wouldn't be having any of these discussions. We ought protesting outside the capitol with torches, pitchforks, tar, feathers and rails.
Between 1900 and 2012, federal government receipts increased from 3.0 percent of the economy’s output to 16.5 percent, and federal expenditures rose from 2.7 percent of economic output to 24.0 percent. State and local governments have also expanded relative to the rest of the economy, although not nearly as much as the federal government. Between 1930 and 2012, state and local government receipts grew from 8.0 percent to 13.0 percent of economic output, while their expenditures rose from 9.1 percent to 14.8 percent of output. For the overall government sector from 1930 to 2012, receipts increased from 11.1 to 26.4 percent of gross domestic product, (GDP) and expenditures rose from 12.1 to 35.6 percent of GDP.
Ditto here. I like that --> "never even PROPOSED such a hike!"
The thing that really PI$$ES me off is 45 years of work, scrimping, saving, and retirement financial planning under a set of rules that are thrown away the very year I retire! I wish a meteor would hit the capitol building and wipe them all out.
By switching to GEICO!..................
The problem with tax reform is it is not accompanied by a long list of budget cuts.
“They’ll all move to Florida!..............,No State Income Taxes!.......”
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Or states such as Pennsylvania which DOES NOT TAX RETIREMENT INCOME (e.g., pensions, IRA & 401K distributions, Social Security).
Trump has little actual control - the RINOs are the problem and there are enough who won't vote for it if it doesn't do enough or if it does too much...
Same situation here...my husband, a firefighter, is scheduled to retire next year. I have been a stay at home mom and we have lived UNDER our income and planned accordingly for the last two decades.
Now, because of the monstrosity that is Obamacare, along with the proposed massive changes in the tax laws, all of our plans are out the window! Losing personal exemptions and SALT deductions, here in Washington state where BOTH are high, means that we will take a huge hit!
How about the government doing what taxpayers have been forced to do over and over again? CUT YOUR BUDGET and live within your means! Neither plan, House of Senate, makes any significant reductions in government SPENDING!
Disagree. He should be knocking heads in Congress, fighting to shrink the GD government like Reagan did, and threatening to veto any tax "reform" that doesn't do that. He has a LOT of control, but hasn't learned (IMO) how to cajole, horsewhip, sweet-talk, and beat up Congress as needed.
As it stands today, all they are doing is changing the tax payers from business to individuals. Yesterday they predicted the government's TAKE will go up by $1.3 TRILLION because of a more robust economy! And they seemed to be bragging about that fact, too.
The only action that warrants bragging is the amount that they are shrinking the govt. But there is zero discussion of that by anybody in the uniparty. This whole stupid charade is going to make the government bigger than ever.
;)
Keep telling yourself that....the GOPe/RINOs will do anything they can to stop him and the tax bill crap proves that they cannot come together over anything - it’s always too much or too little with a divide among those who will vote no for their own reasons. If McConnell and Ryan were serious, they might be able to get something through but most of us won’t like it anyway.
“this tax bill crap proves that they cannot come together over anything”
No, they ARE coming together over a MONSTROUS tax HIKE!
I’m in Maryland...willretireto PA
I’m in Maryland...will retire to PA.
Not Florida?.............The weather’s better...................
Well, I am surprised Guy Benson is being so honest. I’d expect him to join the Dem mantra. Maybe he forgot to renew his NeverTrump membership card.
I remain hopeful that they will hold to a $10,000 cap on SALT. If not, I’m going to get killed.
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