The Brass Tax, The Tax Debate

I'd like to see taxes lowered, between State and Federal (N.Y. is pretty heavily taxed).  I do believe more money in pocket is more money eventually spent, generating additional tax revenue.  I believe more spending drives industry and that hires more people, once again, driving more tax revenue.  Currently the middle class is squeezed.

businessinsider

Meanwhile, taxpayers who still wouldn't take the standard deduction under the Republican plan — those who would instead deduct things like mortgage interest — would pay tax on more of their income than they do now.

Here's the important fine print: "To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction."

Here's how that math works. Let's say you are single with no dependents, and you have a moderate income. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds up to $10,400, or $11,650 if you're over 65.

The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That's a 15% increase — except for seniors, who get a 3% increase.

And then your first dollar of taxable income would be subjected to a 12% tax rate, instead of the current 10%. But don't worry — the framework says "additional tax relief," as yet unspecified, will emerge for you during the committee process.

For married couples, all the relevant amounts are doubled under the current tax code and under the Republican proposal, so the percent changes would be the same.

If you have children, your fate is uncertain. The plan would abolish the $4,050 exemption you get to take for each of your dependent children. But it would also increase the child tax credit — by an unspecified amount. Once that amount is specified, you'll be able to figure out whether you face a tax increase or a tax cut or what.

Meanwhile, taxpayers who itemize their tax deductions for things like mortgage interest and state and local taxes would pay tax on more of their income under the Republican plan. The proposal says "most" itemized deductions would be abolished anyway, but those for mortgage interest and charitable giving would be retained.

Currently, you get to take the personal exemption even if you also itemize deductions, but you get to take the standard deduction only if you forego itemized deductions. Combining these provisions into a single, standard deduction would mean itemizers lose their personal exemption and get nothing back — meaning they'll typically pay tax on an extra $4,050 of income if they're single, or $8,100 if they're married.

So far it doesn't sound to good to me and I still keep my adage that it is nothing but a tax break for corporations and wealthy. Of course it almost sounds like a 'pass it to see whats in it' kind of deal.

I have also heard that now they want four tax brackets instead of three, one for the very well off.

I guess we will all see soon enough as it will most likely pass.

Based on the information that is available, I would end up paying a higher amount in federal taxes. So I not in favor of this so called ''tax cut''.

Trump's shiny tax cut plan has a $1.5 trillion problem

Congress is speeding toward a budget plan that, in the name of cutting taxes, lets the government collect $1.5 trillion less revenue for the next 10 years.

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One big problem: The government needs more revenue as it is — a lot more. The biggest reason is as simple as it is inevitable: Millions more Americans retire each year to go on Social Security and Medicare.

"Federal spending and taxes will have to grow significantly," writes Paul Van be Water, an analyst at the Center on Budget and Policy Priorities. "This is not a statement of political values. It's a reflection of basic realities."

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Other priorities require more federal money, too. Donald Trump, many Republicans and some Democrats say the Pentagon needs more money to keep up with global threats.

The president, many Democrats and some Republicans insist America's decaying infrastructure needs an upgrade. Those priorities involve long-settled federal commitments, not new programs.

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Greg Mankiw of Harvard, a top economic advisor to President George W. Bush, once described those who say tax cuts will pay for themselves and more through growth as "charlatans and cranks." Glenn Hubbard of Columbia, another top Bush advisor, estimates that individual tax rate cuts might generate enough to cover 30 percent of lost revenue, corporate cuts around 50 percent.

The Senate last week voted to let tax cuts create higher deficits. If the House goes along, the GOP tax-and-budget framework will rely on highly speculative revenue projections to finance spending obligations that will keep growing as a matter of demographic certainty.

"This is wishful thinking replacing responsible budgeting," says Maya Macguineas, who directs the nonpartisan Committee for a Responsible Federal Budget. "It's going to end us up with a mountain of debt."

Relying on growth to cover lost revenue is a crock. It will never come to fruition.

You cannot increase spending and decrease taxes. It doesn't work, it never has and it never will. But here we are again with a republican president claiming that is exactly what we should do. Trump has proposed that we decrease the federal income by 60%, that's a BIG number and those of us wanting lower taxes, (and who doesn't), think that is great, but here is the rub....he also wants to INCREASE spending by 55%. Nukes, the military, his wall??? Those fund have to come from somewhere....but he wants to decrease the income by 60%.... Get it? 

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For the last 8 years, we have heard the fiscal conservatives whine and cry that Obama increased the debt.... Where are the fiscal conservatives now? Hey, if you thought Obama increased the debt? You ain't seen nothing yet... Historically republicans ALWAYS increase the debt more than dems do... 

Those who pay the most taxes are The Biggest Winners under our system. I wish I paid more taxes than Warren Buffett, T. Boone Pickens, Mark Zuckerberg and Bill Gates Combined. Not paying taxes means one is poor. The working poor pay a higher total percentage of their incomes in taxes than most really rich folks due including local, city and state taxes plus Social Security, Medicaid and other inbedded taxes. Any contention that the poor and middle classes are not paying their fair share of taxes is bunk. When the top 1% owns 99% of all our wealth things are already out of whack. Cutting taxes on corporations and the wealthy just means that more of our tax burden is shifted to the poor and middle classes. It you want to get rich you have got to pay your fair share, too...

For !!!!!!