Trump's tax plans

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After promising that every American would receive a tax cut under their tax reform proposal, Republican leaders are struggling to explain away the fact that their own analysis reveals that on average, families earning between $20,000 and $40,000 a year from 2023 onward will see a tax increase. On Monday, Fox News host Sandra Smith asked House Majority Whip Steve Scalise (R-TX) about the apparent contradiction. He responded by pretending the tax increases did not exist, since people would no longer have to do the things that provided them with tax credits. “If you look at every different income range, you’re gonna see everybody in those income ranges get a tax cut. What one person does versus another, as the Speaker said, we’re closing a lot of special interest loopholes. That doesn’t mean somebody will no longer be able to pay less in taxes, it means they just don’t have to alter their behavior. They are gonna be paying less in taxes because every rate will go down and we simplify the code.”

House GOP Whip says bill’s tax increases won’t actually increase taxes – ThinkProgress

Unfortunately, the proposal on offer by House Republicans may well retard growth, reward the wealthy, add complexity to the code and cheat the future, even as it raises burdens on the middle class and the poor. There are three aspects of the proposal that I find almost inexplicable, except as an expression of the power of entrenched interests. First, what is the rationale for passing tax cuts that increase the deficit by $1.5 trillion in this decade and potentially more in the future, instead of pursuing the kind revenue-neutral reform adopted in 1986? There is no present need for fiscal stimulus. The national debt is already on an explosive path, even without taking into account large spending needs that are almost certain to arise in areas ranging from national security to infrastructure to the addressing those left behind by globalization and technology.

Three (almost) inexplicable parts of the Republican tax plan | Larry Summers

A report published Wednesday found that the Republican tax bill, the Tax Cuts and Jobs Act (TCJA), would lead to higher taxes for many Americans over the next 10 years if enacted into law. The new analysis from the Urban Institute's and Brookings Institution's Tax Policy Center found that by 2027, 28% of Americans would see an increase in their tax burden due to the tax code overhaul proposed in the TCJA. According to the TPC, the expiration of a number of provisions designed to ease the burden on individuals over the first 10 years of the House bill would lead to an eventual increase for many taxpayers. "Overall, the tax cut would be smaller in 2027, because of the expiration of certain provisions in 2023 (including the new $300 family credit and 100 percent bonus depreciation), the effect of indexing tax parameters to a slower-growing measure of inflation, and the substitution of a child credit that is not indexed for inflation for personal exemptions that are indexed," the report said.

Trump, GOP tax plan effects for middle class: TPC analysis - Business Insider