Trump Team propose $600 Billion Tax Cut

[SimpleDon]

He is now proposing to allow anyone who can arrange their income as a S class or a LLC corporation to be taxed at the 15% rate.

I read that as well, but it's not mentioned in his 12-bullet-point "plan"....

I have to admit that I haven't read the complete plan. I got distracted by a shiny object half way through the page.

 

[jonatha]

I read that as well, but it's not mentioned in his 12-bullet-point "plan"....

I have to admit that I haven't read the complete plan. I got distracted by a shiny object half way through the page.

I read the transcript of the press briefing as well. Here is the only relevant thing that was said:

SECRETARY MNUCHIN: Well, again, what we've said is that the business rate is going to be available for small and medium-size businesses as well as corporations. However, we will make sure that there are rules in place so that wealthy people can't create pass-throughs and use that as a mechanism to avoid paying the tax rate that they should be on the personal side.

This seems to suggest that at least some passthrough income will be taxed at the new lower corporate rate.

 

[Jimmy Higgins]

I have to admit that I haven't read the complete plan. I got distracted by a shiny object half way through the page.

I read the transcript of the press briefing as well. Here is the only relevant thing that was said:

SECRETARY MNUCHIN: Well, again, what we've said is that the business rate is going to be available for small and medium-size businesses as well as corporations. However, we will make sure that there are rules in place so that wealthy people can't create pass-throughs and use that as a mechanism to avoid paying the tax rate that they should be on the personal side.

This seems to suggest that at least some passthrough income will be taxed at the new lower corporate rate.

Maybe. They also want to get rid of the AMT, which help people like Trump pay almost nothing, percentage wise.

 

[Tom Sawyer]

Maybe. They also want to get rid of the AMT, which help people like Trump pay almost nothing, percentage wise.

Well, that's what congressional committees are for - to take things like that out before the final bill gets to the floor.

 

[Elixir]

They also want to get rid of the AMT, which help people like Trump pay almost nothing, percentage wise.

,,, and the estate tax. Don't forget how he wants to abolish the estate tax so his dynasty might perpetuate itself.

 

[Elixir]

Maybe. They also want to get rid of the AMT, which help people like Trump pay almost nothing, percentage wise.

Well, that's what congressional committees are for - to take things like that out before the final bill gets to the floor.

With the number of Repug zillionaires in congress that's not likely to happen.

 

[ideologyhunter]

Saw one of Trump's tax googamoogas on TV last night who actually said, "These cuts will pay for themselves by stimulating growth." Jethus Cwithe, to quote Mike Tyson, we're actually being served this dish again?????
BTW, anyone know how the forgotten man -- make that The Forgotten Man -- comes out in all this? I'm sure Trump has Him in mind. When will this soulless huckster be out of workable disguises? Answer, never -- Fox News is the most successful news broadcaster in history, so we're all on the slow train to Stupidville. People like me, progressives, are left making ironic comments and wondering how a movement that relies on piety and dirty politics gets to run the country.

 

[Jimmy Higgins]

The amount of growth required to make this tax neutral would cause inflation. That is $600 billion a year in tax receipts they need to make up. At an average 25% tax rate, that'd means adding $2.4 trillion to the GDP in a year (that'd be a 13% growth in GDP, in addition to whatever annual growth of GDP there would be)! How in the heck could that even be possible in the US?!

And that is assuming this sort of thing actually works, which it hasn't in the past.

 

[ZiprHead]

The amount of growth required to make this tax neutral would cause inflation. That is $600 billion a year in tax receipts they need to make up. At an average 25% tax rate, that'd means adding $2.4 trillion to the GDP in a year (that'd be a 13% growth in GDP, in addition to whatever annual growth of GDP there would be)! How in the heck could that even be possible in the US?!

And that is assuming this sort of thing actually works, which it hasn't in the past.

The administration said it would require 3% growth, analysts said it would require 4.5% growth. Neither figure is reasonable.

 

[Ford]

They also want to get rid of the AMT, which help people like Trump pay almost nothing, percentage wise.

,,, and the estate tax. Don't forget how he wants to abolish the estate tax so his dynasty might perpetuate itself.

You mean the Death Tax. They literally tax you for dying! What's wrong with these loony lefty libs wanting to tax people just for being dead?

 

[Elixir]

,,, and the estate tax. Don't forget how he wants to abolish the estate tax so his dynasty might perpetuate itself.

You mean the Death Tax. They literally tax you for dying! What's wrong with these loony lefty libs wanting to tax people just for being dead?

Dead people don't pay taxes. Their offspring/heirs do.
In a democracy, it is not a good thing to aid and abet the creation and maintenance of dynastic hordes of wealth and power. I have no objection to people inheriting enough wealth to ensure that they will never be impoverished (unless they squander it), but in a free society nobody deserves to be born into the kind of power wielded Kim Jon Un or Donald Trump, or to be downtrodden by their ilk.
</$0.02>

 

[Jimmy Higgins]

,,, and the estate tax. Don't forget how he wants to abolish the estate tax so his dynasty might perpetuate itself.

You mean the Death Tax. They literally tax you for dying! What's wrong with these loony lefty libs wanting to tax people just for being dead?

It's the price paid for being allowed to vote when you're dead.

 

[ZiprHead]

I just heard the tax plan is the "Kansasification" of the entire country.

 

[Loren Pechtel]

Dead people don't pay taxes. Their offspring/heirs do.
In a democracy, it is not a good thing to aid and abet the creation and maintenance of dynastic hordes of wealth and power. I have no objection to people inheriting enough wealth to ensure that they will never be impoverished (unless they squander it), but in a free society nobody deserves to be born into the kind of power wielded Kim Jon Un or Donald Trump, or to be downtrodden by their ilk.
</$0.02>

The problem is that it's not a choice between the offspring inherit or the government inherit. When you make the taxes too high you end up with the money being spent on luxuries instead.

 

[Elixir]

Dead people don't pay taxes. Their offspring/heirs do.
In a democracy, it is not a good thing to aid and abet the creation and maintenance of dynastic hordes of wealth and power. I have no objection to people inheriting enough wealth to ensure that they will never be impoverished (unless they squander it), but in a free society nobody deserves to be born into the kind of power wielded Kim Jon Un or Donald Trump, or to be downtrodden by their ilk.
</$0.02>

The problem is that it's not a choice between the offspring inherit or the government inherit. When you make the taxes too high you end up with the money being spent on luxuries instead.

Color me dumb, but I don't get your point. That Trump pays too high a tax rate? That his kids might not buy luxury items if a zero is taken off their inheritance? Please explain.

 

[ZiprHead]

Another example of Republicans not caring about deficits unless Democrats are in charge.

Even "trickle down" David Stockman says it won't work.
http://www.foxbusiness.com/politics/2017/04/25/stockman-trumps-tax-plan-dead-before-arrival.html

 

[Ford]

Another example of Republicans not caring about deficits unless Democrats are in charge.

Even "trickle down" David Stockman says it won't work.
http://www.foxbusiness.com/politics/2017/04/25/stockman-trumps-tax-plan-dead-before-arrival.html
View attachment 10865

The cartoon nails it. Hand a "job creator" a 15 percent tax cut, and they're just going to pocket the difference. Tax cuts don't drive investment. Demand does. Your local fast food franchise isn't going to hire 10 more people because their taxes went down. That factory down the street isn't going to add a third shift just because they got a tax cut.

 

[Loren Pechtel]

The problem is that it's not a choice between the offspring inherit or the government inherit. When you make the taxes too high you end up with the money being spent on luxuries instead.

Color me dumb, but I don't get your point. That Trump pays too high a tax rate? That his kids might not buy luxury items if a zero is taken off their inheritance? Please explain.

I'm talking about the inheritance tax, not the income tax.

 

[Loren Pechtel]

The cartoon nails it. Hand a "job creator" a 15 percent tax cut, and they're just going to pocket the difference. Tax cuts don't drive investment. Demand does. Your local fast food franchise isn't going to hire 10 more people because their taxes went down. That factory down the street isn't going to add a third shift just because they got a tax cut.

No. You need a balance between capital and demand.

That doesn't mean the Republicans have it right. They way overestimate the stimulus effects of tax cuts.

 

[Jimmy Higgins]

Another example of Republicans not caring about deficits unless Democrats are in charge.

Even "trickle down" David Stockman says it won't work.
http://www.foxbusiness.com/politics/2017/04/25/stockman-trumps-tax-plan-dead-before-arrival.html
View attachment 10865

The cartoon nails it. Hand a "job creator" a 15 percent tax cut, and they're just going to pocket the difference.

It is more complicated as well. A factory raises production when there is demand, not because they have more money in the bank. If the demand isn't there, no additional production. A law firm? They are making more money now with the same number of cases. Heck, they could afford to lay a couple people off!

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The cartoon nails it. Hand a "job creator" a 15 percent tax cut, and they're just going to pocket the difference. Tax cuts don't drive investment. Demand does. Your local fast food franchise isn't going to hire 10 more people because their taxes went down. That factory down the street isn't going to add a third shift just because they got a tax cut.

No. You need a balance between capital and demand.

That doesn't mean the Republicans have it right. They way overestimate the stimulus effects of tax cuts.

And voted against the Obama stimulus, when that was desperately what our economy needed. Yet, these fuckers keep getting elected!