White House Proposes Slashing Tax Rates for Individuals and Businesses

[DonViejo]

Source: New York Times



By ALAN RAPPEPORT and JULIE HIRSCHFELD DAVIS APRIL 26, 2017

WASHINGTON — President Trump on Wednesday proposed sharp reductions in both individual and corporate income tax rates, reducing the number of individual income tax brackets to three — 10 percent, 25 percent and 35 percent — and easing the tax burden on most Americans, including the rich.

The Trump administration would double the standard deduction, essentially eliminating taxes on the first $24,000 of a couple’s earnings. It also called for the elimination of most itemized tax deductions but would leave in place the popular deductions for mortgage interest and charitable contributions. The estate tax and the alternative minimum tax, which Mr. Trump has railed against for years, would be repealed under his plan.

As expected, the White House did not include in its plan the border adjustment tax on imports that was prized by House Republicans. However, it did express broad support for switching to a so-called territorial tax system that would exempt company earnings abroad from taxation but would encourage companies to maintain their headquarters in the United States.

The plan would include a special one-time tax to entice companies to repatriate cash that they are parking overseas.


Read more: https://www.nytimes.com/2017/04/26/us/politics/trump-tax-cut-plan.html?emc=edit_na_20170426&nl=breaking-news&nlid=57435284&ref=headline&_r=0

[asiliveandbreathe]

1. Hooray for trump and hooray for corporations..American taxpayers -

not so much...

[Cryptoad]

11. WTF is a person living in poverty ,,,

having to pay income tax?

[hibbing]

2. Any Democrats who vote for this should leave the party

They are going to push and push and push these tax cuts for the ruling class, same failed policies for decades now.

Peace

[yallerdawg]

3. "Welcome to Fantasy Island."

Trillions in deficits - not even Republicans will go along with this mindless stupidity.

[Bengus81]

4. So...if your in a 15% bracket in 2016 you JUMP

to a 25% bracket in 2017 if this nut job plan goes through. And if your in a 28% bracket you JUMP to a 35% bracket in 2017. Meanwhile Limbaugh and others in the top bracket get a 5% tax CUT.

Gosh...I am soooo shocked it worked out like this! This is basically a flat tax which will NEVER help the lower and middle class who bust their asses all year for not much money.

"The Federal income tax has 7 brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your income level and filing status."

[underpants]

5. Great post

[JudyM]

6. This shows how ugly their plan is. Yech.

Hopefully it'll crash and burn once a cost assessment comes out.

[iluvtennis]

8. Thanks, makes it clear that middle class is taking the hit on this.

[WinkyDink]

14. Yep. My taxes take a yuuuge leap.

[Amishman]

20. Did they announce exactly where the new brackets would fall?

Trying to see how this impacts me. Doubling the standard deduction would be a big deal on my taxes. Trying to find the catch.

[WinkyDink]

23. "Doubling the standard deduction"--Where is this? There's mortgages, charities, and estates. ALSO:

SEE POST #4 FOR BRACKETS.

[Amishman]

32. It's being reported several places

Here is one article that says it
http://thehill.com/policy/finance/330696-trump-proposes-sweeping-tax-reform

Post #4 reads like someone's guess and doesn't say the dollar amount breaks. I'm looking for something concrete

[WinkyDink]

36. Post #4 used sources. Here's one. Also, it doesn't seem to me that AN INDIVIDUAL would benefit AT

ALL from any increased "standard deduction," which is written in several places as for married couples.
https://www.nytimes.com/2017/04/26/us/politics/trump-tax-cut-plan.html?_r=0

"President Trump on Wednesday proposed sharp reductions in both individual and corporate income tax rates, reducing the number of individual income tax brackets to three — 10 percent, 25 percent and 35 percent — and easing the tax burden on most Americans, including the rich.

The Trump administration would double the standard deduction, essentially eliminating taxes on the first $24,000 of a couple’s earnings. It also called for the elimination of most itemized tax deductions but would leave in place the popular deductions for mortgage interest and charitable contributions. The estate tax and the alternative minimum tax, which Mr. Trump has railed against for years, would be repealed under his plan."

[no_hypocrisy]

7. Great. Now the government and I can go bankrupt together.

[Cryptoad]

9. Geez,,,,,,,

if lower taxes promotes growth... hell let do away with all taxes, Is that not the logical conclusion of the GOP economic policy?. Fuck Gubermint ,,, who needs it, anyway! We can start by asking all Gubermint employees and elected officals to work for nuttin, we will then see who is really a public servant.

[Tess49]

10. It eliminates all deductions except mortage, and charitable giving for the individual. Saw

discussion on CNN or Msnbc. Can't remember which.

[WinkyDink]

15. Middle-class parents are gonna LOVE this. NOT.

[Tess49]

18. Exactly! n/t

[enid602]

35. EIC?

Does it talk about getting rid of the EIC credit? This is a very important credit for low income people with children.

[WinkyDink]

37. No deductions but for two: mortgage and charity. Oh, and allegedly a doubled standard deduction.

Nothing else was mentioned or written about: "Details later."

[Skittles]

12. how exactly will he pay for all his wars

typical repuke bullshit

[JustABozoOnThisBus]

22. Borrow. Increasing the deficit to support war is perfectly ok.

That was President Cheney's philosophy.

[WinkyDink]

13. Sing it with me! "Good-bye, Middle Class. Thought I'd never lose you at all. ---

You had the guts to hold a job,
While those above you trawled.
They ruined all your hard work,
As they whispered into your brain.
They set you on the treadmill,
As they ran their money game.

And it seems to me you lived your life
Like a good American,
Always knowing you could cling to
The American Dream.

And I would have liked to have saved you,
But I was just one vote.
Life, liberty, and happiness
Are on a sinking boat."

(Apologies to Elton John/Bernie Taupin)

[stuffmatters]

16. An insult to working Americans, and always,always Estate Tax Repeal(already 10 Million is exempted)

There is nothing in this except trillions removed from tax revenue and our national treasury and put in the accounts of huge corporations and multimillionaires.

I cannot understand what in the world Trump's 'feed the insatiable rich" tax plan holds for his base voters.

This is like prescribing pure sugar to cure diabetes.

[Lanius]

17. Repealing the estate and alternative minimum taxes are clear giveaways to the rich at the expense of

everyone else. People like Drumpf will benefit greatly without the alternative minimum tax. Can we stop calling the Orange Turd a populist now?

Of course the rubes will support this because Drumpf is also cutting taxes for the Middle Class, but the real meat of the plan is going to the top 1%.

[WinkyDink]

19. "Drumpf is also cutting taxes for the Middle Class"----WHERE?!

[Bengus81]

30. Tax cut for middle class??

He's doing a Reagan and DUMPING tax brackets that keep hard working people from being bumped up and paying hundreds or thousands more. His plan is to DUMP the 15% and 28% tax brackets. Doubling the standard deduction might help (another 6k) but that would remain to be seen.

If your now in one of those your not getting a tax cut,your getting a tax SHAFT. Plus all deductions except for homes and charity (meaning mainly for Jesus) would be history.

[ffr]

21. All of this benifits him personally. WTF!!!

NO!

[WinkyDink]

24. He paid $38 million via the Alternative Tax. Without it, well, .......

[riversedge]

25. Pelosi Statement: Trumps tax plan is short on details and does little for the middle class and thos

Nancy Pelosi? Verified account @NancyPelosi 3h3 hours ago

.@realDonaldTrump’s tax plan is short on details and does little for the middle class and those trying to get there. https://goo.gl/8hFNiR

Link to tweet

[Yonnie3]

26. Medical deductions saved me financially

When I was underemployed and ill, my medical insurance and medical expenses spoke for 100% of my earned income. Not being able to deduct them would have meant I did not get cancer treatments. Why on earth is a mortgage interest deduction more important than a medical deduction? Never mind it's the GOP.

[WinkyDink]

29. Because Trumps and Kushners are in real estate, not medicine. NOT KIDDING.

[Warpy]

27. Yes, and then they follow a rainbow so they can catch a leprechaun and take his pot of gold

to pay for the bloated military that helps them sleep at night.

I think the proper phrase is not "tax cut for individuals," it's "bend over, suckers!" Our taxes are going up. His taxes will go down.

[mathematic]

28. higher standard deduction plus fewer itemized are great

Itemized deductions are welfare for the rich.

I'd love to see the standard deduction quadrupled and mortgage and charitable giving eliminated too.

Of course most of the rest of the plan is garbage, but the reform on itemized deductions are badly needed.

[WinkyDink]

31. No, "itemized deductions" aren't for the rich, who gain wealth via dividends. They benefit the

Middle Class.

[mathematic]

33. Wow the rich really got you fooled.

Kinda sad you'd support loaves to the rich as long as you get your crumbs.

Here's a hint: In 2014, 30% of filers use itemized deductions. 92% of filers making over $500k per year used itemized deductions.

This is all easily checkable via the irs published data. Go ahead and check it.

Also, it's kinda funny that you put itemized deductions in quotes, as if it's something I just made up.

[stuffmatters]

34. This NYT headline extreme journalistic malpractice. Correctly "slashes taxes for 1%, soaks 99%"

Do Trump voters realize that the estate tax exempts wealth under 10million dollars? Why in the world do they want that? Don't they understand Trump's tax cuts are engineered to gift Trump himself billions...just in eliminating the estate tax alone.

I remember with Bush's tax cut, Cheney got a 225,000 refund and Bush 50,000. Ordinary people got $300 and fture decades of deficit
propaganda, menacing of essential govt services and our safety net, accelerated crumbling infrastructure, and the managed cruelty of Republican austerity economics.

The sum total of tax cuts/loopholes for the wealthiest and multinational corps since Bush already total exactly our national debt.
But that's the Republican long game...create crisis then privatize, sell off our taxpayer owned commons to their
increasinly undertaxed and enriched overlords to "SOLVE' it.

[nitpicker]

38. More from the BBC

http://www.bbc.com/news/world-us-canada-39721344