The Truth about The Trump Tax Reform

Trump's tax plan doesn't look pro-growth to me, for the reasons you state. Either its a shifting of tax burden with no net reduction, or its debt financed which as you point out is simply another shift from one pocket to the other. It will be whatever comes out of Congress, so there is really no point in endlessly arguing over this, because Congress will write the legislation and they haven't written it yet. If it makes the compliance process easier, that would be helpful as the time spent preparing taxes could be directed to other pursuits.

 

You don't think rich people pay consumption taxes? What you are actually doing is changing the definition to fit your narrative. We are talking income taxes.

One more question. Can you define fair in the context of this this issue?

 

The deductions are to ensure that it is more like a consumption tax than an income tax.

 

The topic was income taxes, yes.
But your post said any Taxes.

And said as a % of income, more goes to consumption taxes.
And that is a true statement and why they pay less income tax.
Puts more of their money back to the economy.

 

How funny/ You admit that the GOP is digging a hole...and then deride the Dems for opposing that stupidity?

Really?

 

I said no taxes at all. Which is correct in the context of this thread, which is about income taxes.

Why are you talking consumption taxes when the topic is income taxes?

And you didn't define fair yet.

 

Fair enough. If you meant any income tax.

Fair in regards to what?

 

In the context of this thread.

 

Ya know, tsuke, I got to thinking about it some more, and I realized that there is going to be resistance to a lot of these proposals. Of course, I'm talking about the Republicans, because resistance from the Democrats is a given. Trump could propose a 50% tax on the rich, and the Democrats would oppose it because, well... Trump.

I suspect that this could go the way of the health care bill, as Republicans argue over the elimination of deductions for health care expenses and state income and property taxes, and the personal exemptions. And I thought to myself, "Why not just make this really simple?" Why not just eliminate most deductions but agree upon a minimum amount of money that is needed to get by for singles, marrieds, and marrieds with kids, and just start taxation above those amounts? For example, just exempt the first $30,000 for a single, the first $60,000 for marrieds, and an additional $10,000 for each child. The numbers I just used are just suggestions; it's the general idea I'm more interested in.

About the only deductions beyond this ought to be whatever one pays in state taxes (perhaps with a cap on the amount), so that you are not getting taxed on money that was taxed away from you (the double taxation problem). And there are charities that do incredibly good work, and so I would like to leave the tax deduction for charitable contributions intact. That is not motivated by personal selfishness, but out of a desire to see these charities continue to get supported robustly.

What do you think about the chances the Republicans will pass something?

What do you think about my ideas?

Seth

 

I don't mind a progressive type system.
2 or 3 levels.
But lower rates. A minimum income before any taxes. And very few deductions. It should be the average person sbould be able to do their own taxes.

 

We have a minimum income before any taxes, $24000.

We have far too many deductions at all income levels.

 

We can do this different. Our tax system is so complex it takes hundreds of billions to calculate and collect. Simplifying this is like a free tax break all in itself. Also our healthcare costs are crazy high. If we brought it down we could be saving 1 - 1.5 trillion per year if we got it down to levels in other countries and those savings get better when we factor in that healthcare costs are predicted to explode under our current system. The government is littered with numerous programs and it is sad to say that only very few are shown to actually have any impact. If we just simplified our laws, regulations, and programs that will save us a bundle too and make it easier for businesses to start and operate.

 

IMO, that is how the elite want it.
Complex.
And barriers to start up small businesses is less competition to large multinationals.

 

Truth about Tax Reform is slashing Medicare ,Medicaid and Obamacare .

The Estate Tax will save the Upper 1 %. Trump's and Walton's.

This Tax Reform is only for transferring the wealth from the middle class to the wealth even more.

 

Care to explain how eliminating the estate tax takes money from the middle class?

 

Big Bucket of Tax income pays for Federal spending. Taxes have been at 30 year Lows creating our Debt !

Eliminating estate tax will cost taxpayers $269 billion over a decade. Big Bucket will not be as full adding that to the USA Debt !

https://www.cbpp.org/research/federal-tax/ten-facts-you-should-know-about-the-federal-estate-tax

While the estate tax will generate less than 1 percent of federal revenue over the next decade, it is significantly more than the federal government will spend on the Food and Drug Administration, the Centers for Disease Control and Prevention, and the Environmental Protection Agency combined. Repealing the estate tax would cost $269 billion over a decade, the Joint Committee on Taxation estimates, before counting the interest costs of adding to the debt.

 

We don't tax too little, we spend too big on credit.

 

Roads and bridges crumbling,too many Long conflicts ( wars ) not being funded, being outpaced by other countries on technology, education.

All points toward the USA has succumbed to one too many carpet-baggers promising we'll do it all and Lower Taxes too.

We used to pay our bills. Now we just add it to the USA Credit Card

 

We don't have a balanced budget for the federal govt. so letting people keep more of their own money cost cost anyone anything.


You note that tax rates have dropped, but fail to mention to tax revenues have mostly increased year to year.

To put it in another context, if you choose to make dinner instead of going out for dinner, how much does that cost the waitress?

 

The Military budget has doubled since the 1990's. Government Budget is Larger now than in the past.

So yes revenue has increased but so is our budget and Far Flung military demands.

To remove the estate tax and increase the debt has nothing at all to do with Tax Reform that's goal is to raise wages and GDP.

All you're doing is increasing the wealth gap between Upper and Lower Americans by removing the estate tax and adding to the Debt.

Eliminating estate tax will cost taxpayers $269 billion over a decade. Big Bucket will not be as full and adding that to the USA Debt !

 

$27 billion a year isn't even a drop in the bucket. Be better off removing deductions.

Revenue keeps increasing and so does debt. Sounds like a spending problem, not a revenue problem. Maybe we should focus our efforts there instead of punishing people for good decision making and having the audacity to die.

The estate tax isn't making anyone poor. Bad decision making is what makes Americans poor.