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Trump's tax plans
Quote:President Donald Trump said during his campaign that he would close a tax loophole for fund managers. "The hedge fund guys didn't build this country," he told John Dickerson on CBS's "Face the Nation" in August 2015. "These are guys that shift paper around and they get lucky." "Half of them, look, they're energetic, they're very smart, but a lot of them, it's like they're paper pushers. They make a fortune, they pay no tax. It's ridiculous, OK?" But that loophole — the carried interest provision — remains in the Republicans' final version of the tax bill, which the House and Senate are scheduled to vote on Tuesday. With the carried  interest provision, investment fund managers can pay a lower capital gains tax rate on their share of their fund's profit. Usually it's around 20%, below the current top income tax rate of 39.6%.
The Republicans' massive tax bill keeps a loophole that benefits fund managers — even though Trump slammed it during the campaign

Quote:The Republican tax-overhaul plan will send about 10% of a net $1.5 trillion tax cut directly to middle-income households, according to an analysis released late Monday by Congress’s Joint Committee on Taxation. Households that earn $20,000 to $100,000 a year in wages, dividends and benefits will get $144 billion in tax cuts in all over a decade, with most of those cuts coming in the early years of the decade and then petering out or reversing as tax cuts expire, according to the analysis. Those households account for about half of all U.S. tax filers, with nearly a quarter making more and a quarter making less.
Only 10% of Republican tax cut goes to middle class, congressional monitor says - MarketWatch

Quote:Sen. Elizabeth Warren (D-Mass.) targeted the Treasury Department’s analysis of the GOP tax plan in a series of tweets Monday, saying officials “made up the numbers” to fit their claims. Warren bashed the one-page analysis released earlier Monday, in which the department said that economic policies passed under President Trump would raise enough revenue to cover the tax cuts in the GOP bill, which directly contradicts several independent analyses, including one from the Joint Committee on Taxation (JCT) Monday evening. The senator, who has been a fierce critic of the tax measure, claimed that the figures used in the analysis didn’t make sense. She wrote that instead of using economic models, Treasury officials “just made up the numbers.”
Warren shreds Treasury analysis of GOP tax plan: They 'made up the numbers' | TheHill

A one page analysis. LOL. This was cobbled together because Mnuchin claimed there was an analysis that supported his claim that the tax cuts would pay for themselves while the Treasury dept. denied they had done such a study..
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Quote:The U.S. tax bill signed into law in December will have a limited effect on the U.S. economy, as companies are unlikely to spend their tax savings on growth initiatives while the tax cut for the wealthy will not trickle down. That’s according to Moody’s Investors Service in a FAQ on the credit impact of the tax bill published Thursday, which warns of a number of negative consequences for federal debt, local governments, utilities and homeowners.

More than three-quarters of the $1.1 trillion in individual tax cuts will go to people who earn more than $200,000 a year in taxable income, who constitute only about 5% of all taxpayers, said Karnovitz. The tax bill will significantly reduce the tax intake of the federal government in the next 10 years in the scope of 1% of GDP on average, Moody’s estimates.
Tax overhaul will have a limited effect on U.S. economy, Moody’s says - MarketWatch
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Quote:The Republicans are increasing wealth and income inequality in America by playing bait-and-switch with the middle classThe bait: The new tax law gives them immediate bonuses, higher wagesand more take-home pay now. The switch begins next year, when the bottom income quartile receives the lowest benefit from the tax cuts and the top 5 percent receive the highest. 

Middle-class incomes will immediately increase, though higher income households will see higher increases — almost 30 percent higher — according to the Tax Policy Center. After-tax income in the 20-80 percent income range will rise 1.7 percent, while those in 95-99 percent income range will rise 2.2 percent.

But in 2019 the bottom 90 percent of earners will have lower after-tax income as a result of tax reform, while the top 5 percent will take home more. By 2027, the two lowest income quartiles will receive no benefit from the tax changes, while the top 0.1 percent receive the biggest.  A decade from now, two thirds of middle-class taxpayers will experience a tax hike. Meanwhile, the corporate tax rate reduction to 21 percent is permanent... 

The new tax law also continues a huge, controversial tax break for participation in profits, or "carried interest,” paid to hedge fund managers. They’ll pay a 23.8 percent tax on carried interest for assets held for one year, instead of the normal 39.5 percent rate. Although the amount of revenue lost is small, the break exposes Republicans’ contempt for the middle class, reflecting a belief that it is so uninformed, they can get away with such an in-your-face tax cut for the wealthiest Americans.

Even more egregious, the GOP repealed the Affordable Care Act’s individual mandate to pay for the tax cuts, which will lead to millions being uninsured, and then announced their intent to cut Medicare and Social Security. Trump then released his $4.4 trillion budget proposal, projecting next year’s deficit at double last year’s. Although it may have little impact on the budget Congress passes, it shows Trump’s disregard for economic prudence.
GOP's tax reform bait-and-switch will widen inequality | TheHill
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Quote:Much of the tax benefit from the new tax law's deduction for pass-through businesses will go to wealthy individuals, according to a Joint Committee on Taxation report released Monday. About 44.3 percent of the tax benefit from the deduction will go to those with income of $1 million or more in 2018, and 52.4 percent of the benefit will go to those with income in that range in 2024, the congressional tax scorekeeper estimated. The new tax law provides a new 20-percent deduction for income from pass-through businesses, which are businesses taxed through the individual code on their owners' returns. Pass-throughs can include many small businesses, as well as larger firms such as real-estate companies.
Tax committee report: Much of tax law's pass-through benefit goes to the wealthy | TheHill

No surprises here, whatever you might have heard..
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We have to give Rubio marks for honesty here, these soundbites rarely come out of the Voodoo party:

Quote:In an interview with The Economist published Monday, the Florida Republican admitted what Democrats, analysts and nonpartisan experts had claimed from the beginning — that the bulk of the corporate tax cuts would benefit the wealthy. “We couldn’t have said it any better ourselves,” said Matt House, spokesman for Sen. Chuck Schumer, D-N.Y. Last fall, Rubio had been publicly wary of reducing the corporate tax rate from 35% to 21%, but ended up voting for the bill after it included an expansion of the child tax credit.

“As he said when the tax law passed, cutting the corporate tax rate will make America a more competitive place to do business, but he tried to balance that with an even larger child tax credit for working Americans,” Rubio’s spokeswoman said in a statement Monday. The White House had claimed at the time that the tax cuts would spur companies to create more jobs and that American workers would benefit from increased corporate coffers, with incomes getting a $4,000 boost, on average. In October, Jared Bernstein, who was chief economist to former Vice President Joe Biden, dismissed those forecasts as “trickle-down fairy dust.”
Marco Rubio just undercut the Republicans’ main argument for corporate tax cuts - MarketWatch

Quote:There is still a lot of thinking on the right that if big corporations are happy, they’re going to take the money they’re saving and reinvest it in American workers,” Rubio said in a recent interview with the Economist. “In fact they bought back shares, a few gave out bonuses; there’s no evidence whatsoever that money’s been massively poured back into the American worker.” Rubio — once a rising star in the GOP who is now struggling to figure out where he fits in — spoke with the Economist about his plan for a “reform conservative movement,” the details of which are unclear. The publication says his program is devoted to addressing “economic disruption and social disaffection.”
Marco Rubio says Republican tax cuts aren’t helping American workers - Vox
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What did the Trump tax plans do? Not all that much..

Quote:the slow and steady recovery that President Barack Obama kick-started with the stimulus has continued under Trump — just a little slower and a little steadier than before. Indeed, as you can see below, the economy added almost 3.5 million jobs in Obama's last 16 months in office, compared with just under 3 million jobs in Trump's first 16 months.
For the last time: Trump inherited a good economy, and he hasn’t made it better - The Washington Post

Here is Rex Nutting with a wide ranging comparison between the Obama and the Trump economy:

Quote:In fact, you only need to go back four years to 2014 to find an economy that was as good as (or better than) the one we are enjoying today. If real growth does reach 4.5% in the second quarter, that would be terrific. Just as terrific as the 4.6% growth in the second quarter of 2014, and almost as good as the 5.2% growth in the third quarter of 2014. In the middle of 2014, Trump didn’t think the economy was the best ever. Instead, he was complaining that Obamacare and Obama’s “war on coal” were killing jobs and our economy. They weren’t, of course. The economy was OK, with the strongest job growth since 1999 and falling energy prices that put more purchasing power in the pocket of almost every American.
Today’s economy is good! Almost as good as it was in 2014 - MarketWatch
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Quote:Not a wealthy member of Congress? Too bad. More than half of all Americans will pay more in taxes by 2027 as a result of the tax law, according to the Tax Policy Center, while 83% of the tax breaks will go to the 1% by that same year.
The Trump tax scam had a very bad week - MarketWatch
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