11-29-2017, 01:28 PM
(11-29-2017, 12:59 PM)JustWinBaby Wrote: The most unbelievable thing to me is that one Senator said they could keep the state tax deduction if the corporate rate was only lowered to 22% instead of 20%.
That's just mind-boggling. The corporate rate is going to be a good bit lower than 20%, anyway, because a lot of deductions still remain. The marginal corporate rate DOES matter, and I believe the average effective rate close to 27% is fairly uncompetitive....but cutting to 22% (with the effective rate a good bit lower) would be extremely competitive.
Or - it's crazy I know - since the wealthy are going to benefit from a significant cut in corporate taxes, you could INSTEAD offset that with a higher top bracket for personal income tax (or cap gains).
There was one Senator, I forget which one, that put forward the idea of making corporations pass-through entities. It was an interesting idea that I'd like to read more about.
As to the last bit, that is what would make sense. Sensible policy is a thing of the past. But I also fully believe that this bill is intended to give them ammunition to gut programs in a couple of years when they face significant revenue shortfalls. They are creating a reason to kill government programs.