Trump's plan calls for slashing taxes on businesses, the wealthy
- Author: Leroy Wright Sep 27, 2017,
Sep 27, 2017, 19:14
Schlapp and others also said Trump, who has been dealt multiple defeats on the health-care front, wants to be done with tax legislation by the end of the year. "This is a plan for the middle class and for companies so they can bring back jobs".
House Republicans plan to hold a conference meeting Wednesday, and public information about the plan is expected shortly afterward.
The tax reform plan being unveiled Wednesday cuts the top individual income tax rate from 39.6 to 35 percent, although lawmakers received the green light to add a higher fourth rate to respond to pushback, according to a source familiar with the discussions.
Trump has been highly vocal about his determination to slash the corporate tax rate from 35 percent to 15 percent, even though many fiscal conservatives are pushing for a rate of 20 percent or higher to avoid adding to the deficit.
Ways and Means GOP members were meeting again Monday to discuss taxes. Each of the 74,000 pages we all must comply with every year is a destructive force in the economy.
But that's not the only way that Trump's tax plan would rig the tax code for Trump.
Democrats argue that a drop in the individual top rate would be a tax cut for the wealthy. That our moron billionaire leader might take an action that would help the sort of people who make up his entire cabinet and social circle and family!
U.S. Rep. Peter King, R-Long Island, the dean of the Republican delegation in NY, told Bloomberg News that he won't support any bill that repeals the state and local tax deduction.
Democrats, however, warned the GOP plan would provide a windfall for the wealthy.
Still, that's chump change in comparison to the tax windfall he hopes to bestow upon himself by cutting the top tax rate on the bulk of his income by more than half, from almost 40 percent to 15.
Mr. Neal said he favored keeping the top rate at 39.6% and wanted to see distribution tables, or estimates of how each income group would fare in the plan.
"The current plan - for many, many people, it will not reduce taxes on the high end", Mnuchin said. Republicans know taxes are a cost imposed on American families. Republicans won't tell you how they are going to pay for the cuts, because the money is coming out of education, Social Security, Medicare, and Medicaid.
Republicans are viewed as the preferred party to get something done on tax reform, with 41 percent saying they think congressional Republicans can be trusted to handle tax reform and 35 percent saying they trust congressional Democrats more. In theory this means that companies would not be taxed on their overseas earnings, but to prevent erosion of the tax base, Republicans plan to impose some form of tax on foreign profits at a rate that has yet to be determined. "Some recognize that debt is important, but it's too many who have spent a long time railing about debt, than tax reform comes along and they're 'Sorry, I like that'".
Many individual deductions also would be eliminated in an effort to simplify the tax code.
The administration said it was eliminating most individual credits and deductions, and touted the near-doubling the standard deduction from $6,350 as of 2017 to $12,000 for a single person, and from $12,700 as of 2017 to $24,000 for a married couple. Fortunately there are many fine journalists working to explain the actual salient features of the forthcoming Republican tax proposal.
While closing tax loopholes would offset some of the lost revenue from lowering rates, the proposed tax plan could still balloon the federal deficit.
Despite holding the majority, Republican lawmakers will still face a series of challenges in their attempt to overhaul the tax code for the first time since 1986.
Top White House negotiators and key GOP leaders have agreed on those targets, but apparently President Trump has not.
Why? Because they still believe in the self-serving fantasy that tax cuts stimulate economic growth and create jobs.