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Donald Trump unveils his tax reform plan

September 27, 2017

  As America’s Watchtower reported would happen on Monday, Donald Trump released his tax reform plan today. On first glance, after sifting through articles on this proposal, there appears to be both good and bad in this proposal.

  I apologize for this post not having any real structure, I just threw a few thoughts together because I have not had enough time at this point to go through the details and I am going on the talking points most articles seem to be repeating.

  Here is some of what we know at this point:

The plan sets out three tax brackets for individuals — 12 percent, 25 percent and 35 percent, down from the existing seven rates, which top out at 39.6 percent. But that’s not firmly set, as congressional tax-writing committees will be given flexibility to add a fourth rate for the highest earners — an effort to prevent the overhaul from providing too much of a benefit for the wealthy.

  I like the idea of cutting down the tax brackets, although I would prefer one tax bracket–a flat tax on all income without loopholes to let people hide money–but the lowest tax bracket could be a problem because it is actually a 2% increase on the lowest wage earners. I have to believe when all is said and done the lowest tax bracket will remain the same.

  Democrats will not like the idea of cutting the top wage earners’ taxes but, as the block quote above states, there is “flexibility” to add a fourth bracket for the richest Americans and there is talk this will be a surcharge of some type on the wealthiest of the wealthy. And Democrats will not like this:

The rate on corporations would be set at 20 percent, down from the current 35 percent, and businesses would be allowed to immediately write off their capital spending for at least five years. Pass-through businesses would have their tax rate capped at 25 percent.

There is also this:

At the same time, though, the tax plan calls for repealing the alternative minimum tax, the estate tax and the generation-skipping estate tax, all of which would be a boon for higher earners and the wealthy.

  And the state and local tax deduction would be abolished. From what I can tell this would mean property taxes would no longer be deductible. Coming from a state with high property taxes I am not sure I approve of this. But with the standard deduction doubling to $24,000, and with the possibility of a lower tax rate, it might be beneficial for middle class taxpayers to take the standard deduction instead of itemizing deductions. This could be a win for the middle class but honestly I have not looked at the numbers yet. 

  It is going to be interesting to see how this plays out in the coming days and weeks, and it will be interesting to see what the final draft looks like. 

malo periculosam libertatem quam quietum servitium

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11 Comments leave one →
  1. Fergus permalink
    September 27, 2017 8:05 pm

    Eliminating the state and property taxes would be a disaster. First of all these taxes will go up, ask yourself how much they have increased in the past 20 years. On the other hand the personal deduction will remain static, when was the last time it was increased. Worse as the debt increases the government will inflate the economy forcing everyone into ever higher levels of taxation. Unless these are inflation adjusted by an independent source you are screwed.

    Make no mistake about it, we will hear the usual nonsense about social justice, income neutral tax reform, the poor suffering. But the average joe tax payer will take it where it hurts through hidden taxes, fees, and add ons. Who do you think pays for those free Obama phones?

    End the tax exempt status of Harvard and other universities and non-profit “charities” such as the red cross that pay their leaders over a million annually. Then you’d get real tax reform. Also tax churches on all assets over their church property of those dedicated to their function and an income of 4% of their asset values. Why shoud churches generate billions in non taxed income and engage in politics?

    Who do you suppose is behind the import of all the Muslims? Further why does the government provide subsidies to private enterprise. We have seen the jokes that Obama’s green subsidies caused.

    Liked by 1 person

    • September 27, 2017 9:08 pm

      Thanks for the input, I also have reservations about doing away with the state and local tax deductions.

      Like

      • September 27, 2017 11:07 pm

        Not allowing deductions for local taxes hurts small businesses. This will not help grow the economy.

        Add the NFL to your list of crony capital tax exempt organizations.

        Religious institions, churches, temples, mosque, need to pay local property taxes or user fees. They impact services provided by the local government.

        Liked by 1 person

      • September 28, 2017 5:31 am

        It seems strange this is on the table in the first place. I guess they are trying to simplify the tax code but it’s not a good idea to take away popular tax breaks without making sure this is not going to hurt the people they claim they are trying to help.

        Like

  2. September 27, 2017 8:43 pm

    Did you report this would happen on Monday? Or you did you report on Monday that this would happen? The very first clause in your post implies the former and not the latter. But if it is the latter, then it should be written as: “As America’s Watchtower reported on Monday would happen,…” Otherwise, why didn’t it happen this past Monday and why were you two days off?! lol

    Like

    • September 27, 2017 9:15 pm

      I admit the first sentence was poorly constructed but I did apologize for the lack of structure in the overall post. I am not a “nice poet” but we all are not given the gift of prose. I bow down to your superiority.
      Do you have anything to add in regards to the tax proposal?

      Like

  3. petermac3 permalink
    September 27, 2017 10:29 pm

    Let’s all lock arms in solidarity and bend over. Nuff said….

    Liked by 1 person

    • September 28, 2017 5:34 am

      That should do it!

      Like

  4. September 28, 2017 3:46 am

    Reblogged this on Brittius.

    Liked by 1 person

    • September 28, 2017 5:33 am

      Thank you.

      Like

      • September 28, 2017 7:02 am

        You’re welcome.

        Liked by 1 person

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