Trump Tax Reform

March/30/2017 15:52PM
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Sorry, we had a delay in posting. I was hacked again. Pretty sure it was the Russian’s. They stole my stuff to steal the election from Hillary and now tried to shut me down to keep me from defending Trump against 98% of the media that is trying to attack him. It’s becoming ludicrous to try to watch news today.  Yesterday’s USA Today had at least 12 anti-Trump stories. Here’s what it is doing to the media.

media ratings

You can’t sell a product for long with these ratings. Even the Democrats seem to be catching on. These are trust numbers. The approval rating is 6%.

So, you can’t get an honest bit of news about Trump’s tax reform plan anywhere, but I got it from the usual source for news today. The Internet. If you don’t watch the news, you are uninformed and if you do, you are misinformed.

Here’s the Trump plan from his website.

For personal income taxes, Trump wants to cut taxes and simplify the tax structure by condensing the seven tax brackets we currently have into just three. The income thresholds for single taxpayers will be exactly half of those for married joint filers, thereby eliminating the marriage penalty. In addition, the head-of-household filing status would be eliminated.
Marginal Tax Rate
Taxable Income (Single)
Taxable Income (Married)
12%
$0-$37,500
$0-$75,000
25%
$37,500-$112,500
$75,000-$225,000
33%
$112,500 and above
$225,000 and above
Data source: Trump campaign website.
Note that just as the current tax brackets do, these income ranges are referring to taxable income, the calculation of it would change considerably if Trump’s plan were to be implemented. For one thing, Trump proposed that the standard deduction amounts more than double to $15,000 (single) and $30,000 (married), from the current levels of $6,350 and $12,700, respectively. However, the personal exemption would be eliminated.
Also, Trump wants to expand tax benefits for families, including a larger allowable deduction for child care expenses that could be taken whether a taxpayer itemizes or not, and would also be allowed for up to four children (the current law only allows two). Also, Trump wants to offer further child care tax breaks for lower-income parents.
For the wealthy, Trump wants to get rid of the estate tax, a move that has been on the Republican wish list for some time now. Currently, the tax is only applied to estates worth more than $5.45 million, but the argument is that inherited money was already taxed once, when it was originally earned, so therefore taxing it again upon death is excessive and unfair.
Finally, Trump wants to trim the top corporate tax rate from 35% to 15%, as well as allow companies with massive overseas stockpiles of cash to repatriate that money at a one-time discounted tax rate.
Here’s the Republican plan:

The GOP Platform

Basically, congressional Republicans agree that the tax system has become too complex. In the tax policy paper titled “A Better Way,” a road map was laid out to simplify and cut taxes, which included the following points:
  • Elimination of the alternative minimum tax (AMT)
  • Elimination of the estate tax
  • The same three income tax rates as Trump’s plan (12%, 25%, and 33%)
  • Deduction of 50% of capital gains, which leads to effective capital gains and dividend tax rates of 6%, 12.5%, and 16.5%
  • Elimination of itemized deductions except mortgage interest and charitable contributions
  • Standard deductions of $12,000 for singles, $18,000 for singles with children, and $24,000 for married couples filing jointly
  • Elimination of the personal exemption
  • An increased child tax credit of $1,500, $1,000 of which is refundable
  • Elimination of the marriage penalty
  • Continuation of the earned income tax credit (EITC)
  • Simplification of higher education tax benefits
  • Continued tax incentives for retirement savings
  • Flat corporate tax rate of 20% and immediate write-off of business investments

So, unlike the contentious repeal of ObamaCare, both sides are very close. Most people, Trump included, seem to think the Freedom Caucus is a problem. I, for one, believe they more closely represent the platform Trump was elected by and he needs to work with them and drain the swamp of Ryan and McConnell. They, and their followers are locked to the old school of pay to play. Ryan’s wife is a wealthy lobbyist and Ryan may be voting based on her clients rather than Trump. McConnell is just an example of term limits like McCain and Graham. Dead brain cells are prevalent in Congress.

Tax reform will happen and fairly soon. The economy will turn on a dime and jobs will open and debt will continue down.

 

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Comment (1)

  1. Ronald Gonshorowski says:
    March 31, 2017 at 12:29 pm

    Wow, I was just a little concerned about your viewpoint for a period of time, but your statement today gives you fantastic credibility.
    Getting rid of Ryan and McConnell are absolutely imperative. It was a mistake to make Ryan Speaker and McConnell should have retired along with the all the group of Reid sycophants.
    The biggest mistake in the last 8 years was getting government involved in healthcare and now trying to divorce both groups is almost impossible. This should never have occurred.
    Have great day.

    Reply

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