[ul]
[li]Corporate AMT is eliminated[/li][li]Personal AMT is eliminated[/li][li]Three tax brackets 12%, 25%, 35% [/li][li]Eliminates deductions that encourage “government dependency”[/li][li]Corporate Tax Rate of 20%[/li][li]Expensing of Capital Assets[/li][li]Elimination of Death Tax[/li][li]Ends offshoring tax practice[/li][li]Doubles the Standard Deduction [/li][li]Small business tax rates capped at 25% (With rules to prevent those with higher income to limit their income to 25%)[/li][li]An overall more simple, less loophole ridden tax code[/li][/ul]
Thoughts? I like the plan - but I see the GOP failing at life again and not getting anything to the President for signature.
In other news, I’m excited to make a thread on M4C GD that I can claim almost-SME status in
Eliminate the EITC and you’d make up quite a bit of revenue. I can see (maybe, but personally I think EVERYONE should pay something) having no federal income tax burden due to income being “low”, but getting a check and you didn’t even pay anything? Horsepuckey since Reagan signed it.
As of 2012 the EITC spent $56 billion of other taxpayer’s money. That’s not a small amount.
[/li]
People do not understand how US tax treatment of corporate profits outside the US (repatriation treatment) directly leads to offshoring. Actually, even enables offshoring.
Politicians make repatriation out to be a gift to corporations, when in fact not having a rational treatment incents corporations to move pretty much every job they can offshore.
cut staff in the US. Reduce US costs, profit up
hire them back offshore. Int’l costs go up
higher int’l costs used to offset Int’l profits, to the point of cancelling them out (local country and US)
avoid the double taxation on the int’l profits
Most Int’l corporations will offshore any position they can due to this. US, and to a certain extent, Canadian, companies are actively doing this.
All due to tax code. Without that, labor arbitrage is probably not worth the double bubble, inefficiencies, and cust sat hit.
I’m not sure how I feel about the EITC, other than I think that the rates need adjusting (down). Beyond that I see it as a safety net for folks who are working but can not get a decent enough job.
I’m more than willing to help out folks who are trying, and like to think I am generally protective of children.
I figure if they don’t get this passed I’ll use it as a good opportunity to get into some more stocks as the market will definitely take a hit, tax reform getting passed was priced in during the post election spike and if they can’t get healthcare done or tax reform there will likely be a correction. If it does get passed then I’ll enjoy some tax cuts. Sounds like a win win.
That’s more of that wealth re-distribution. Seems like people are getting a lot of money they didn’t earn and that needs to stop entirely. Times are tough for a lot of people but the person who actually earned that money should be the one to keep it.
If this is the same plan from a few months ago it wil punish a lot of “higher” income people like myself. Trump’s plan while he was running for office was much better than this, that plan would have saved me a bunch. This is a lot like Rubio’s proposed plan when he was running and I didn’t like that at the time. I’m all for simplifying, but not if I am going to be punished. I hope it doesn’t go through.
I work for an American “Mittelstand” company that competes with divisions of Fortune 500 companies. I can’t point to it directly, but since we have all of our production here in the US, but do supply globally (I’ve got 10 year VISAs for 3/4 of the BRIC)- I have always felt that our ‘native’ international competitors have been able to play with the books a bit- and that this small, but real advantage, compounded over years, is a significant part of their advantage.
I really want to get away from giving an exemption for state income taxes. We are subsidising these high tax states. They want to spend the money, don’t make me chip in for it. Plus, it will hit the coastal elites right in the nuts.
I take it that you are currently in between the proposed 25% tax bracket and the proposed 35% tax bracket and this new plan will push you into the higher bracket? That’s the only place I can see someone not liking this plan. I’d love to know the circumstance that punishes you.
As for me, as the sole shareholder in a small business corporation, it looks like a significant savings for me and my company. Getting rid of the death tax is also a huge plus since I am a second generation owner with the third generation coming aboard next year.
That’s another viewpoint, and a valid one, depending on your world view.
My view is that I’ve been pretty blessed, I don’t mind helping folks that are trying. As I said, I’d like them to lower the threshold for maximum earnings.
I don’t like getting into specifics of what I do but I am a physician and I’ve been out of residency training for 15 months. It took me a long time to get here, I do ok but (especially with student loans) I can assure you I am very much middle class. I hope this fails, the last thing I need is to be punished by paying even more in taxes. Give me the Reagan tax cut that drops the top rate to 28% and I’d be very happy about that.
No it doesn’t, so I’m not sure how anyone can get too worried yet. Not that I have any faith in government to fix anything but I doubt they are going to make 35% start at $200k.
It will be interesting to see how the Dems respond.
35% started around 150k with the plan proposed in the spring (which I believe this is), I crunched the numbers and my taxes would go up, similar to Rubio’s proposed garbage tax plan.
