President Trump’s Tax Plan – The good, the bad, and the ugly.

Readability

President Trump’s Tax Plan – The good, the bad, and the ugly.

Here is a link to the full text of Pres­i­dent Trump’s tax plan.

The Good

No busi­ness of any size, from a For­tune 500 to a mom and pop shop to a free­lancer liv­ing job to job, will pay more than 15% of their busi­ness income in taxes. This lower rate makes cor­po­rate inver­sions unnec­es­sary by mak­ing America’s tax rate one of the best in the world.

That is a huge improve­ment over the cur­rent cor­po­rate tax brack­ets which tops out at 35%. That should spur much needed job growth.

No fam­ily will have to pay the death tax. You earned and saved that money for your fam­ily, not the gov­ern­ment. You paid taxes on it when you earned it.

With the death tax so out­ra­geously high, so many busi­nesses are liq­ui­dated to pay off the taxes rather that pass on the busi­ness to the next gen­er­a­tion. With this pro­posal busi­nesses will more likely be passed down gen­er­a­tion to generation.

Reduc­ing or elim­i­nat­ing cor­po­rate loop­holes that cater to spe­cial inter­ests, as well as deduc­tions made unnec­es­sary or redun­dant by the new lower tax rate on cor­po­ra­tions and busi­ness income.

Lob­by­ists from large cor­po­ra­tions spend tremen­dous amounts of money to buy mem­bers of con­gress so they can write tax breaks into the tax codes. These tax breaks favor the large cor­po­ra­tions which then makes it more dif­fi­cult for small com­pa­nies to com­pete. This reduces that problem.

A one-​time deemed repa­tri­a­tion of cor­po­rate cash held over­seas at a sig­nif­i­cantly dis­counted 10% tax rate.

How many bil­lions of dol­lars are horded over­seas by US cor­po­ra­tions? Reduc­ing this rate will allow this money to flow back here. This rate should be kept at ten per­cent instead of rais­ing it back up.

The Bad

If you are sin­gle and earn less than $25,000, or mar­ried and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 mil­lion house­holds – Over 50% –from the income tax rolls.

Already 47 per­cent pay no fed­eral income taxes while so many of them col­lect fed­eral ben­e­fits such as wel­fare and food stamps. This will only exac­er­bate that sit­u­a­tion. Every­one should pay some income taxes so they feel the pain of hav­ing to pay for enti­tle­ment. With much needed eco­nomic growth there will be a greatly reduced need for entitlements.

The Trump tax cuts are fully paid for by…Reducing or elim­i­nat­ing deduc­tions and loop­holes avail­able to the very rich, start­ing by steep­en­ing the curve of the Per­sonal Exemp­tion Phase-​out and the Pease Lim­i­ta­tion on item­ized deductions.

Tax cuts never have to be paid for. They even­tu­ally pay for them­selves by increased rev­enue result­ing from greatly increased eco­nomic growth. Increas­ing the bur­den on the rich will only wipe out any pos­i­tive ben­e­fits of a reduced busi­ness tax rate. Three cheers for soak­ing the rich!!! What do they con­tribute to soci­ety? Maybe they cre­ate most of the jobs, cre­ate new busi­nesses, and invest in businesses.

With this huge reduc­tion in rates, many of the cur­rent exemp­tions and deduc­tions will become unnec­es­sary or redun­dant. Those within the 10% bracket will keep all or most of their cur­rent deduc­tions. Those within the 20% bracket will keep more than half of their cur­rent deduc­tions. Those within the 25% bracket will keep fewer deduc­tions. Char­i­ta­ble giv­ing and mort­gage inter­est deduc­tions will remain unchanged for all taxpayers.

Once again, shift­ing more of the tax bur­den on the rich will only nul­lify any pos­i­tive benefits.

Since we are mak­ing America’s cor­po­rate tax rate glob­ally com­pet­i­tive, it is only fair that cor­po­ra­tions help make that move fis­cally responsible.

The whole pur­pose of this tax plan is to increase eco­nomic growth which will result in more jobs. Increas­ing the bur­den on cor­po­ra­tions, who cre­ate lots of jobs, to pay for tax breaks on mid­dle and lower income indi­vid­u­als is yugely counterproductive.

The Ugly

The spine­less Repub­li­cans in the Sen­ate will most likely not pass this or any other tax reform.

We need a flat tax and reduced spending.

An across the board 10 per­cent tax rate on every indi­vid­ual and busi­ness will unleash tremen­dous eco­nomic growth. All fed­eral spend­ing will need to be slashed to a level that will result in sur­pluses large enough to elim­i­nate the debt in a gen­er­a­tion. That is the only way to restore the United States to eco­nomic great­ness. Sadly the indi­vid­u­als we keep elect­ing to con­gress do not have the courage to carry out such a bold plan. We the peo­ple must elect bet­ter people.

Here is a link to the full text of President Trump’s tax plan.

The Good

No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes.  This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.

That is a huge improvement over the current corporate tax brackets which tops out at 35%.  That should spur much needed job growth.

No family will have to pay the death tax. You earned and saved that money for your family, not the government. You paid taxes on it when you earned it.

With the death tax so outrageously high, so many businesses are liquidated to pay off the taxes rather that pass on the business to the next generation.  With this proposal businesses will more likely be passed down generation to generation.

Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income.

Lobbyists from large corporations spend tremendous amounts of money to buy members of congress so they can write tax breaks into the tax codes.  These tax breaks favor the large corporations which then makes it more difficult for small companies to compete.  This reduces that problem.

A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate.

How many billions of dollars are horded overseas by US corporations?  Reducing this rate will allow this money to flow back here.  This rate should be kept at ten percent instead of raising it back up.

The Bad

If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – Over 50% –from the income tax rolls.

Already 47 percent pay no federal income taxes while so many of them collect federal benefits such as welfare and food stamps.  This will only exacerbate that situation.  Everyone should pay some income taxes so they feel the pain of having to pay for entitlement.  With much needed economic growth there will be a greatly reduced need for entitlements.

The Trump tax cuts are fully paid for by…Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phase-out and the Pease Limitation on itemized deductions.

Tax cuts never have to be paid for. They eventually pay for themselves by increased revenue resulting from greatly increased economic growth. Increasing the burden on the rich will only wipe out any positive benefits of a reduced business tax rate.  Three cheers for soaking the rich!!! What do they contribute to society?  Maybe they create most of the jobs, create new businesses, and invest in businesses.

With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant. Those within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions. Those within the 25% bracket will keep fewer deductions.  Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers.

Once again, shifting more of the tax burden on the rich will only nullify any positive benefits.

Since we are making America’s corporate tax rate globally competitive, it is only fair that corporations help make that move fiscally responsible.

The whole purpose of this tax plan is to increase economic growth which will result in more jobs.  Increasing the burden on corporations, who create lots of jobs, to pay for tax breaks on middle and lower income individuals is yugely counterproductive.

The Ugly

The spineless Republicans in the Senate will most likely not pass this or any other tax reform.

We need a flat tax and reduced spending.

An across the board 10 percent tax rate on every individual and business will unleash tremendous economic growth.   All federal spending will need to be slashed to a level that will result in surpluses large enough to eliminate the debt in a generation.  That is the only way to restore the United States to economic greatness.  Sadly the individuals we keep electing to congress do not have the courage to carry out such a bold plan.  We the people must elect better people.