Trump's Tax Plan

[Benton]

(09-28-2017, 12:33 PM)Luvnit2 Wrote: Really, the proposal is to increase zero tax for an individual to $12,000 and a family $24,000. That is all for the lower income group and could beneift some in the middle class as well. They are keeping the home mortgage deduction, but eliminating a lot of deductions the rich can take as well.

The small business owners are being killed (middle class by the way) with the current tax structure so hopefully this will give t hem some relief as well.

It confuses me when citizens take the bait to keep being the one of the highest taxed nations in the world versus attempting to lower taxes and curb wasteful spending like 135 billion a year on illegal immigration.

From what I've seen, estimates are it will have a $2 trillion deficit impact over 10 years. That's not good. It's got $6 trillion in tax cuts over the same period, without enough offsetting spending reductions.

That, to me, is unacceptable.

I'd love lower taxes, too. But we either have to reduce spending enough to lower taxes, or increase taxes enough to cover spending. Both sides have a good argument for their approach, and I'm not getting into which is better. I'm just tired of seeing budgets that try to make everyone happy by increasing our debt and lowering how much we have to pay to be in debt.

As far as deductions for the rich, if you've got any info I would like to read it. Most of what I've read is directly or indirectly cuts for the rich. Like the tax cut where profits are income, allowing business owners to go from a rate currently at 39% down to 25% (if they're a high income earner). Or doing away with the etate tax (which I'm in favor of, but it greatly benefits higher income earners more than lower income earners).

This budget — at least on the surface — seems like the same thing we've had since the 80s. Lower earners get a break. Higher earners get a break. Middle earners (those of us in the $40,000-$200,000 area) get the shaft. Again.


edit:
http://abcnews.go.com/Politics/wireStory/trump-gop-roll-tax-plan-cuts-rates-doubles-50121627

Deductions for mortgage interest and charitable giving would remain, but the plan seeks to end most other itemized deductions that can reduce how much affluent families pay.

A battle is already brewing among Republicans over a move to eliminate the deduction for state and local taxes, which is especially valuable to people in high-tax states such as New York, New Jersey and California. Republicans from those states are vowing to fight it.

The plan also would:

—Retain existing tax benefits for college and retirement savings such as 401(k) contribution plans.

—Seek to help families by calling for an increased child tax credit and opening it to families with higher incomes. The credit currently is $1,000 per child. Also proposed is a new tax credit of $500 to help pay for the care of the elderly and the sick who are claimed as dependents by a taxpayer.

—Eliminate the estate tax — paid by those with multimillion-inheritances, a boon for wealthy individuals who inherit businesses, investments and real estate. Also slated for elimination is the alternative minimum tax, a supplemental tax for certain individuals, corporations and estates that enjoy exemptions that lower their income tax bills.

—Allow companies to pay substantially lower tax rates, part of an effort to make U.S. businesses more competitive globally. The plan would impose a new, lower tax on corporate profits stashed overseas, and create a new tax structure for overseas business operations of U.S. companies.

—Give new benefits to firms in which the profits double as the owners' personal income. They would pay at a 25 percent rate, down from 39.6 percent. This creates a possible loophole for rich investors, lawyers, doctors and others; administration officials say they will design measures to prevent any abuses.