If you cut the corporate rate from 35% to 20%, the share of government revenue from individual income tax is going to go up.
You know, I would normally agree with this. But these are not normal times. I think Trump would simply attack some more black athletes, perhaps the NBA this time, and his base would eat it up. By pushing all these Repeal-and-Replace bills, he has tried to throw millions of people off of medical coverage. and yet his supporters seem to be hanging in like lemmings. He is using culture war as a diversionary tactic, while trying to pass all the cuts in benefits for the poor and middle class.
I would love to see a chart that presented the growth or decline of the percentage of Americans actually in the middle class in relation to tax cuts, starting in 1980. Some people love to bring up the Jack Kennedy tax cuts and then crow about the growth of the middle class. Sorry, but that was an entirely different situation than what we are seeing today. A true measure would be tracking Reagan's tax cuts, and those coming after, with the growth or decline of the middle class, from 1980 to the end of President Obama's last term in office.
Federal Taxes don't fund government spending they control inflation. The government prints its own currency. But I agree with your sentiment. If the economy is 'the best' and 'doing great' the incentive for tax cuts for the wealthy don't seem to be there.
I'd imagine it's very hard to truly separate the noise as technology and geopolitical factors play a strong role in middle class growth and decline. However, I am very much pro- demand and anti-supply side with how the 21st century is shaping up.
Keep it simple. Add new brackets for taxable income over $1M/$2M at 55% and over $10M at 65%. Tax long term capital gains at regular income rate less 10%. Eliminate all welfare programs and replace with UBI (no means testing). You could get into the loopholes but I dont trust congress to do this.
A simple tax code in which eliminates a lot of deductions would be ideal. Americans spend so much time on accountants and trying to game the system and its not productive work. Not sure why the government is using tax incentives to change behavior as i don't feel thats the role of the government. I like the doubling of the standard deductions but i would eliminate all the deductions on: state and local taxes (in trump plan) mortgage interest deduction (reducing to $500k from $1 million in trump plan) charitable contributions deduction (too much bs with this if people want to be charitable pay taxes and do so afterwards) 0 taxes on first $25,000 in income and then three simple brackets. I love the idea that Trump is pushing of a simplified tax code. The only people that benefit from a highly complicated code are the ones that are paid to decipher it and the ones with a huge money advantage to pay for the advice.
Fine, but the burden of controlling that inflation still falls to taxpayers and manifests itself as cash leaving their bank accounts. And the question still stands on how much should each be responsible for funding to control that inflation.
All you need to know about this plan, which is basically a big message to all of non super-rich america to ****-off:
This thread is super informative if you have two seconds. Before you say FAKE NEWS...keep in mind this is the WSJ which is owned by Rupert Murdoch. Most eyebrow raising point -
Why is 50% of the proposed tax cuts going to the top 1%? That's outrageous. I am all in favor of tax cuts, but only if ALL taxpayers receive equitable relief. This is sounding more like the ultra rich will get richer scheme.
Because that's who pay the most taxes. Hell, almost half the country don't pay any income tax at all as it stands, and about 30% of workers have a negative tax burden meaning that they receive back more than they ever paid in. Given those things, there's no way to give them cuts because they don't pay anything as is and in many cases income tax is just a payday for them. If Guy A pays 500K in income tax a year Guy B pays 100 bucks in income tax a year Guy C pays nothing in income tax a year and guy D pays nothing and gets back 400 bucks that he didn't pay in How do you give tax relief without benefiting Guy A more than the rest?
50% of taxable income over $1M. Everyone is taxed the same on the first 10k, 50k, etc. so if you're getting to that rate you are just fine.
