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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..
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
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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