Remember, Trumpcare was nothing but a tax cut bill masquerading as a Healthcare Bill. Now that it’s gone down to defeat for now, and they can’t use Reconciliation, they have to show their sociopathy in the open.
Hence, their next scam – ‘ TAX REFORM’.
I’m no tax expert, but, considering that they were willing to take away healthcare from MILLIONS for this ‘tax reform’, should tell you all you need to know about it.
So, I went around, in search of folks who had read it and understand the implications.
The Republican tax “plan” is a deficit-busting mess. And it would slash the president’s taxes.
Updated by Edward Kleinbard Sep 28, 2017, 7:23am EDT
Here is what you need to know about the Republican tax plan released Wednesday: It’s not a tax reform plan at all.
It is a sketch of an outline of a preliminary notion of a tax cut for some — and a tax hike for others. The components read like the jumble of ideas you might expect a table of slightly inebriated Chamber of Commerce types to shout out when polled for their tax reform suggestions.
The plan is sketchy, as I say, but this is the gist: Where individuals are concerned, the seven current individual income tax brackets will become three: 12 percent, 25 percent, and 35 percent. The standard deduction will be raised to $24,000 for couples and $12,000 for individuals. There will be a substantially bigger child tax credit.
It’s not just the nerdiest details that are missing: We don’t, for example, know what the top tax rate would actually be (the proposal dangles the possibility of a fourth tax bracket, for high earners, on top of that 35 percent rate). We don’t know where the new tax brackets begin and end, or the magnitude of the enlarged child tax credit. In many cases it is impossible for me or anyone else to tell you whether you will be better or worse off, given the lack of detail.
We know that some lower-income Americans will be worse off, because the skimpy document says so. The lowest tax bracket increases by fully 20 percent, from 10 to 12 percent. The larger standard deduction, the unspecified larger child tax credit, and “additional tax relief” to be named later will protect “typical” low-income families from a tax hike, we are told, but others will see their bills actually climb. And the aged and the elderly will lose their additional standard deduction, which under current law offers them up to $5,000 in additional deductions.
The “doubling” of the standard deduction (to $24,000 for married couples filing joint returns) is offset in part by disallowing personal exemptions. Today, taxpayers are entitled to one standard deduction per tax return, plus a personal exemption (a $4,050 additional deduction) for each family member. The proposal would take away these personal exemptions. This means that a family of four will go from $28,900 in these deductions (standard deduction plus four personal exemptions) to $24,000 (larger standard deduction but no personal exemptions). That’s a decrease, not a doubling.
Guess who benefits?
What does the Republican proposal do in this case? It eliminates the AMT. It subjects income derived from pass-through businesses like Donald Trump’s empire to a special 25 percent tax rate (rather than 35 percent or 39.6 percent, the individual rate), because owners of these businesses are special, in some indeterminate way. And the proposal repeals the estate tax.
Here you see the real agenda at work. When it matters, the proposal has more than enough detail to signal to President Trump and the Republican Party’s coterie of oligarch financial backers that their personal taxes will be slashed, not by a few hundred or thousands of dollars, but by millions and millions.
The 25 percent tax rate for pass-throughs is particularly galling, because it has no principle at all behind it, and will be the subject of widespread abuse, as taxpayers maneuver to squeeze their incomes into the pass-through business box. The proposal describes this as some sort of discounted rate for small business owners, but that is simply dishonest. It applies to all pass-through vehicles, including those owned by Trump and his counterparts.
Many Californians face a big financial hit under the Republican tax plan, which would eliminate a major tax break that benefits state residents more than those anywhere else in the U.S.
The federal deduction for state and local taxes allowed Californians to reduce their taxable income by $101 billion in 2014, according to an analysis by the nonpartisan Tax Foundation.
The tax outline released Wednesday by President Trump and top congressional Republicans would ax the break, which largely benefits residents in states that are Democratic strongholds
“Republicans in Washington have once again zeroed in on California to punish us and make our state the single biggest loser in their reckless tax scheme,” said Senate President Pro Tem Kevin de León (D-Los Angeles).
Sen. Dianne Feinstein (D-Calif.) said the elimination of the deduction was one reason the plan was a “non-starter” for her.
“I don’t believe California should suffer in order for President Trump to give tax cuts to the rich,” she said.
The plan also left open the possibility of another big hit: new limits on the deduction for home mortgage interest, which would have a greater effect on states with higher housing costs, such as California and New York.
Thread from Kurt Eichenwald
Kurt EichenwaldVerified account @kurteichenwald
I have read the Republican framework for tax reform. It is even more horrifying than I imagined. MASSIVE giveaway to rich. And poor pay more
8:28 AM – 27 Sep 2017
…it horrifies me this is what our country has become. There are things in this proposal that are worthwhile. But greed is the main goal…
…it also intentionally targets urban areas and blue states with higher taxes. It is an abomination.
…and we massively raise the deficit all to accomplish this. Seriously – how much is enough? I have sat in the home of a man with a house..
..that is so large it has 26 refrigerators. And he spent the entire conversation bitching about how taxes were breaking him.
..the bottom line: I have given up on America. No one really cares about the middle class as anything other than props. And they are…
…fooled by Fox etc that the GOP is out to save them. They dont know, the largest middle class tax cut in history was from Obama. But the..
.rich got nothing – in fact, they went up — so Fox and company fooled middle class ppl into believing their taxes were raised.
I would say a certain group of people. A certain kind of person was fooled by Fox.
Kay is one of my favorite posters at Balloon Juice. She has been on this for awhile, and I think her instincts are right on.
September 27, 2017 at 8:56 am
The Trump Administration are lying again this morning.
When they try to sell the huge tax cut for millionaires remember how many times they lied about their health care bill.
Don’t believe ONE WORD without seeing actual text of the proposed bill. Trump lies and all of his low quality hires lie, and they’re desperate to pass a huge tax cut. They don’t give a shit about health care. They care about getting a huge tax cut.
They are going to bury us in lies on this tax bill and taxes aren’t like healthcare- there won’t be a tv host riding to the rescue to call them out on something like preexisting conditions. This is Job One for Trump’s wealthy backers- they don’t care about anything else. Remember what they traded for this tax cut- they backed this corrupt moron. They’ll need to be compensated for that. If they don’t get a tax cut then they discredited themselves and sold the country out for nothing.
Remember the universal “Fix the Debt” propaganda campaign they used in 2010?
They’ll do it again as soon as they cut taxes and the magical bullshit revenue increases don’t appear because that is the plan.
These rich people all sold their country out and backed this clown for ONE reason- so they could stop paying taxes. They have to get it now. If they don’t they sold out for nothing. This is the POINT of hiring Donald Trump. All the rest is details.
It was an all or nothing bet and now it’s time to collect. They’ll so gut revenue you won’t recognize this country in a decade- I don’t care what you rely on- Medicare, Social Security, highways, courts- this is the Big Grab. They want all of it and they can get it all with a tax bill. Without funding it’s all bullshit and they know it. It’s Part Two to finish the job they started in 1980.