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Trump's Tax Plan

ime
Fuck Joe Biden
Friday, February 10, 2017 7:40 PM
I try not to get into the political but this is pretty interesting. Where sanjoselloyd wants to destroy families and the middle class and have everyone taxed and put into a nanny state where everyone is poor and has to rely on the government looks like the Donald disagrees. [view link] TAX REFORM THAT WILL MAKE AMERICA GREAT AGAIN The Goals Of Donald J. Trump’s Tax Plan Too few Americans are working, too many jobs have been shipped overseas, and too many middle class families cannot make ends meet. This tax plan directly meets these challenges with four simple goals: 1. Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages. 2. Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money. 3. Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again. 4. Doesn’t add to our debt and deficit, which are already too large. The Trump Tax Plan Achieves These Goals 1. If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – over 50% – from the income tax rolls. They get a new one page form to send the IRS saying, “I win,” those who would otherwise owe income taxes will save an average of nearly $1,000 each. 2. All other Americans will get a simpler tax code with four brackets – 0%, 10%, 20% and 25% – instead of the current seven. This new tax code eliminates the marriage penalty and the Alternative Minimum Tax (AMT) while providing the lowest tax rate since before World War II. 3. No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world. 4. No family will have to pay the death tax. You earned and saved that money for your family, not the government. You paid taxes on it when you earned it. The Trump Tax Plan Is Revenue Neutral The Trump tax cuts are fully paid for by: 1. Reducing or eliminating most deductions and loopholes available to the very rich. 2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate, followed by an end to the deferral of taxes on corporate income earned abroad. 3. Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses. DETAILS OF DONALD J. TRUMP’S TAX PLAN America needs a bold, simple and achievable plan based on conservative economic principles. This plan does that with needed tax relief for all Americans, especially the working poor and middle class, pro-growth tax reform for all sizes of businesses, and fiscally responsible steps to ensure this plan does not add to our enormous debt and deficit. This plan simplifies the tax code by taking nearly 50% of current filers off the income tax rolls entirely and reducing the number of tax brackets from seven to four for everyone else. This plan also reduces or eliminates loopholes used by the very rich and special interests made unnecessary or redundant by the new lower tax rates on individuals and companies. The Trump Tax Plan: A Simpler Tax Code For All Americans When the income tax was first introduced, just one percent of Americans had to pay it. It was never intended as a tax most Americans would pay. The Trump plan eliminates the income tax for over 73 million households. 42 million households that currently file complex forms to determine they don’t owe any income taxes will now file a one page form saving them time, stress, uncertainty and an average of $110 in preparation costs. Over 31 million households get the same simplification and keep on average nearly $1,000 of their hard-earned money. For those Americans who will still pay the income tax, the tax rates will go from the current seven brackets to four simpler, fairer brackets that eliminate the marriage penalty and the AMT while providing the lowest tax rate since before World War II: Income Tax Rate Long Term Cap Gains/ Dividends Rate Single Filers Married Filers Heads of Household 0% 0% $0 to $25,000 $0 to $50,000 $0 to $37,500 10% 0% $25,001 to $50,000 $50,001 to $100,000 $37,501 to $75,000 20% 15% $50,001 to $150,000 $100,001 to $300,000 $75,001 to $225,000 25% 20% $150,001 and up $300,001 and up $225,001 and up With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant. Those within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions. Those within the 25% bracket will keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers. Simplifying the tax code and cutting every American’s taxes will boost consumer spending, encourage savings and investment, and maximize economic growth. Business Tax Reform To Encourage Jobs And Spur Economic Growth Too many companies – from great American brands to innovative startups – are leaving America, either directly or through corporate inversions. The Democrats want to outlaw inversions, but that will never work. Companies leaving is not the disease, it is the symptom. Politicians in Washington have let America fall from the best corporate tax rate in the industrialized world in the 1980’s (thanks to Ronald Reagan) to the worst rate in the industrialized world. That is unacceptable. Under the Trump plan, America will compete with the world and win by cutting the corporate tax rate to 15%, taking our rate from one of the worst to one of the best. This lower tax rate cannot be for big business alone; it needs to help the small businesses that are the true engine of our economy. Right now, freelancers, sole proprietors, unincorporated small businesses and pass-through entities are taxed at the high personal income tax rates. This treatment stifles small businesses. It also stifles tax reform because efforts to reduce loopholes and deductions available to the very rich and special interests end up hitting small businesses and job creators as well. The Trump plan addresses this challenge head on with a new business income tax rate within the personal income tax code that matches the 15% corporate tax rate to help these businesses, entrepreneurs and freelancers grow and prosper. These lower rates will provide a tremendous stimulus for the economy – significant GDP growth, a huge number of new jobs and an increase in after-tax wages for workers. The Trump Tax Plan Ends The Unfair Death Tax The death tax punishes families for achieving the American dream. Therefore, the Trump plan eliminates the death tax. The Trump Tax Plan Is Fiscally Responsible The Trump tax cuts are fully paid for by: 1. Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. The Trump plan also phases out the tax exemption on life insurance interest for high-income earners, ends the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and are not risking their own capital, and reduces or eliminates other loopholes for the very rich and special interests. These reductions and eliminations will not harm the economy or hurt the middle class. Because the Trump plan introduces a new business income rate within the personal income tax code, they will not harm small businesses either. 2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate. Since we are making America’s corporate tax rate globally competitive, it is only fair that corporations help make that move fiscally responsible. U.S.-owned corporations have as much as $2.5 trillion in cash sitting overseas. Some companies have been leaving cash overseas as a tax maneuver. Under this plan, they can bring their cash home and put it to work in America while benefitting from the newly-lowered corporate tax rate that is globally competitive and no longer requires parking cash overseas. Other companies have cash overseas for specific business units or activities. They can leave that cash overseas, but they will still have to pay the one-time repatriation fee. 3. An end to the deferral of taxes on corporate income earned abroad. Corporations will no longer be allowed to defer taxes on income earned abroad, but the foreign tax credit will remain in place because no company should face double taxation. 4. Reducing or eliminating some corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.

20 comments

  • ime
    7 years ago
    the part of this i like is the people making the least amount of money get more to live off of, maybe it is a little less fair to those making more money but I don't have a real problem with that
  • Dougster
    7 years ago
    Yeah, would be a bit better for me. One thing that's interesting is that in the upper bracket there is not much difference between dividend/long term capital gains and ordinary income anymore. So it does encourage short term speculation. I think SJG is going to be livid and call Trump a Nazi now!
  • Dougster
    7 years ago
    How about corporations and trusts? Is he going to get rid of the ridiculous 35% brackets there? (Which kicks in around $10k of income for trusts!)
  • Mate27
    7 years ago
    This is a libertarian' dream!
  • Mate27
    7 years ago
    And we all can dream big! This is far reaching but as with anything in politics and government it must in order to negotiate and compromise. Good luck Trump, but even if we get 25% of the proposals we are headed in the right direction. I paid over $40k in taxes last year, excluding sales and gasoline. That means I basically housed 1 and 1/2 prisoners. Smh!
  • Dougster
    7 years ago
    Think there might be a little problem if the corporate rate is lower than the top income tax rate, that would allow people to keep their money in corporations and save a bit rather than allocate to themselves. Same will presumably be true about trusts. So it looks like people should be able to engineer their way down to 15% now.
  • Lone_Wolf
    7 years ago
    Oh hell yes! Lower taxes and increase spending. What could go wrong? It's always worked in the past right?
  • Dougster
    7 years ago
    It's not as ridiculous as it sounds. If it can turbo charge the economy the revenue can pick up enough to make it a net surplus longer term. I think his timing is good too and then he'll look like a genius.
  • Dominic77
    7 years ago
    Meh. I'll go from 15% (married filing jointly) to I guess 10%. Not that much dollars difference but then again I already had tax cuts from prior administrations. So I don't have as far to go as the rest of you in higher brackets. I'm sort of disappointing in the reduction in estate taxes. I get the libertarian aspect of "you earned it keep it" helps those born into the right families. Seems like the creation of a "landed aristocracy" which this nation was historically against (at least the European model). I think a 90% or 99 % estate tax is about right. But maybe I'm thinking about it wrong. The reduction in small business taxes to 15% is awesome.
  • ime
    7 years ago
    So you think it's better for someone to inherit $50k instead of $100k because they would become part of the "landed aristocracy". There are a lot of far from rich families that worked hard, saved, and invested to leave their children with something that might help them. Oh wait you think they shoukd get $1k and government take the rest, get the fuck out of here.
  • Dominic77
    7 years ago
    I'd prefer the personal saving rate increase (rather than personal spending). Businesses sitting on hordes of cash (or so I'm lead to believe) or doing non productive activities like M&A when they should be doing R&D.
  • Dominic77
    7 years ago
    Well they keep pushing the limits up and use the emotional tactics / heartstrings that liberal tend to use about "family farms." What the current limit $2.5MM or $5MM these days? The $100K is lunch money values in terms of estates. Given that gift ceilings are what $14K/yr and $2MM lifetime, right, then those are reasonable limits. But kids like Trump getting $1MM or $4MM or whatever it was from his father, is absurd. My mother and grandmother passed that there estates were worth zero or less. So you will get no sympathy from me. You get the fuck out of here. Make everyone start from zero. That's fair.
  • Dominic77
    7 years ago
    The children frankly enjoy and used plenty of advantages while the parent(s) or other family was still alive. So it not like they got nothing. But free estate money. No. You didn't earn that.
  • ime
    7 years ago
    Piss off with that shit, you just want to penalize people for being succesful.
  • ime
    7 years ago
    And some children don't see a penny of it while parent's were alive.
  • ime
    7 years ago
    It's also not something that is going to effect me because i won't inherit anything, but i ain't mad or jealous of those who might. Fuck just giving it to the government who would just waste it.
  • Dominic77
    7 years ago
    I'd prefer it to to a charity or anything else than a govt. I'm with you there. I'm just concerned a little about concentration of wealth and nonproductive uses of capital (like people sitting on their asses and not working). If anything I live successful people. I am trying to become one myself. I just didn't understand how important connections and networking was or I didn't give it as much stock 20 yrs ago as I should have so now I have a lot of ground to catch up. Jealous of successful people? No. I want to be one! So what if some parents don't share while they are still alive. Live isn't fair. Doesn't entitle you to it she they are gone either. Work for that shit. I though this was the "hard work" and "personal responsibility" group. Any money I have is going to charity after my wife and I are gone.
  • Mate27
    7 years ago
    The estate tax was phased away briefly in 2010, before the Obama administration reinstated it. It now sits around $5 MM singles and $10 MM for married. Most won't hit those marks, but for those that do they could end up paying 40% tax for Amounts above the $5 MM to $10 MM marks. That's a lot already! I'm for some sort of estate tax, but estate attorneys can find the loopholes to avoid much of it with a little planning. I told a younger guy in his 50's who had some large assets to gift them to his father who was likely going to pass away in a few years. Once his father passed away, his son inherited them back in order to get a step up in basis and avoid a huge capital gains tax! The reverse gifting is a loophole that creative planners can use to avoid capital gains and highly appreciated assets.
  • Dougster
    7 years ago
    If you try and tax or eliminate inheritance you can bet your ass that people will just find ways to pass it along to their heirs during their lifetime. That's from a practical stand point. Ethically the question, as ime, points out is why shouldn't people be allowed to decide that the reason they are working hard is to pass some along to their children? If eliminate that possibility you take a way a big (maybe the biggest?) incentive people have to work hard.
  • Mate27
    7 years ago
    The inheriting generation usually just piss it away. Actually it's the 3rd generation that isn't motivated. First generation starts the assets, 2nd generation continues with pride, 3rd generation blows it away.
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