Trump wants to cut taxes for the rich, higher rate for the poor.

[mark kennedy]

Republicans plan to collapse the number of brackets from seven to three. The standard deduction would almost double to $12,000 for a single filer and $24,000 for married couples, meaning Trump can accurately argue that many more low income earners would pay no tax under his plan. As we previously reported, the top tax bracket would fall from 39.6% to 35%. (Republicans agree to raise bottom tax rate, double standard deduction)
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Is anyone tracking this, I mean it's awesome in it's audacity. It's only going to raise the deficit by a couple of trillion dollars over time and you really get to put it to the poor. Sounds like a GOP dream come true.

 

[samir]

Republicans plan to collapse the number of brackets from seven to three. The standard deduction would almost double to $12,000 for a single filer and $24,000 for married couples, meaning Trump can accurately argue that many more low income earners would pay no tax under his plan. As we previously reported, the top tax bracket would fall from 39.6% to 35%. (Republicans agree to raise bottom tax rate, double standard deduction)
​

Is anyone tracking this, I mean it's awesome in it's audacity. It's only going to raise the deficit by a couple of trillion dollars over time and you really get to put it to the poor. Sounds like a GOP dream come true.

Great news!

Personal exemptions are being removed which is great because for poor people with more than one child the additional standard deduction will be less than the exemption for each of their children so they will have to pay taxes on more income.

 

[mark kennedy]

Great news!

Personal exemptions are being removed which is great because for poor people with more than one child the additional standard deduction will be less than the exemption for each of their children so they will have to pay taxes on more income.

Wow, that really just happened, the tax rate on the poor is raised and you are happy about it. The tax rate on the rich is cut and estate tax removed in order to open the door for perpetuities and you do a happy dance.

 

[samir]

Wow, that really just happened, the tax rate on the poor is raised and you are happy about it. The tax rate on the rich is cut and estate tax removed in order to open the door for perpetuities and you do a happy dance.

It's about time the poor start paying their fair share although I'd prefer a flat tax of $10,000 per person regardless of income (those who earn less can do community service to make up the difference). That way it is fair and equitable for everyone.

 

[samir]

Whether the rich and poor should pay more or less depends on how much they are paying now.

The top 3% pay more income taxes than the bottom 97% so perhaps they're paying too much.
The bottom 70% only pay around 5% of income taxes so perhaps they should start paying more.

 

[mark kennedy]

It's about time the poor start paying their fair share although I'd prefer a flat tax of $10,000 per person regardless of income (those who earn less can do community service to make up the difference). That way it is fair and equitable for everyone.

Explode the deficit by 2 trillion dollars, reduce the tax rate from 39% to 35% for the rich and a few middle class, for business owners it drops to 25%. Then we can consign the poor to forced labor through community service because that's your idea of fair.

 

[samir]

Explode the deficit by 2 trillion dollars, reduce the tax rate from 39% to 35% for the rich and a few middle class, for business owners it drops to 25%. Then we can consign the poor to forced labor through community service because that's your idea of fair.

Is it really fair that the top 3% who earn over $250,000/year should have to pay more income taxes than everyone else combined? Is it fair that 70% of Americans only have to pay about 5% of total income taxes?

I watched a protest of "poor" people fighting to keep their food stamps and every one of them was a glutton so none of them were actually poor by historical standards when only kings could afford to eat like pigs.

 

[tadoflamb]

Whether the rich and poor should pay more or less depends on how much they are paying now.

The top 3% pay more income taxes than the bottom 97% so perhaps they're paying too much.
The bottom 70% only pay around 5% of income taxes so perhaps they should start paying more.

According to that chart, with your flat tax of $10,000, the lowest bracket, 24.3% of all filers, would be taxed at about a 66% rate.

 

[tadoflamb]

Is it really fair that the top 3% who earn over $250,000/year should have to pay more income taxes than everyone else combined? Is it fair that 70% of Americans only have to pay about 5% of total income taxes?

I watched a protest of "poor" people fighting to keep their food stamps and every one of them was a glutton so none of them were actually poor by historical standards when only kings could afford to eat like pigs.

Absolutely. Those people who benefit most from living in this great country should be cheerfully be paying the most for that benefit.

 

[samir]

According to that chart, with your flat tax of $10,000, the lowest bracket, 24.3% of all filers, would be taxed at about a 66% rate.

Yeah and they'd also pay a higher percentage of their income for bread, a cell phone, a car, and everything else. What's your point? Do you think car dealerships should charge people based on a percentage of income instead of charging the same amount for everyone? Why should paying for education, fire fighting services, and libraries through taxes be any different?

If we get rid of welfare we could probably knock it down to $3,000/year.

 

[mark kennedy]

Whether the rich and poor should pay more or less depends on how much they are paying now.

The top 3% pay more income taxes than the bottom 97% so perhaps they're paying too much.
The bottom 70% only pay around 5% of income taxes so perhaps they should start paying more.

Almost half of all federal revenue (47 percent) comes from individual income taxes. The income tax is generally progressive: higher-income households pay a larger share of their income in income taxes than lower-income households do.

Another 34 percent of revenue comes from payroll taxes, which are assessed on the wage or salary paychecks of almost all workers and are used to fund Social Security, Medicare Hospital Insurance, and unemployment insurance. By law, employers and employees split the cost of payroll taxes, but research has shown that employers pass their portion of the cost on to workers in the form of lower wages.
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(Policy Basics: Where Do Federal Tax Revenues Come From?)

The richest 1% of families controlled a record-high 38.6% of the country's wealth in 2016, according to a Federal Reserve report published on Wednesday. That's nearly twice as much as the bottom 90%, which has seen its slice of the pie continue to shrink. The bottom 90% of families now hold just 22.8% of the wealth, down from about one-third in 1989 when the Fed started tracking this measure. (Record inequality: The top 1% controls 38.6% of America's wealth. CNN Money)
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The top 1% don't pay income tax, their wealth does.

 

[samir]

Absolutely. Those people who benefit most from living in this great country should be cheerfully be paying the most for that benefit.

The top 3% are mostly business owners and are the reason why our country and economy are great. They earned their money. We're benefiting from them.

How do you determine how much the top 3% should pay? They currently pay 52% of all income taxes. Is that too much or not enough?

 

[samir]

Almost half of all federal revenue (47 percent) comes from individual income taxes. The income tax is generally progressive: higher-income households pay a larger share of their income in income taxes than lower-income households do.

Another 34 percent of revenue comes from payroll taxes, which are assessed on the wage or salary paychecks of almost all workers and are used to fund Social Security, Medicare Hospital Insurance, and unemployment insurance. By law, employers and employees split the cost of payroll taxes, but research has shown that employers pass their portion of the cost on to workers in the form of lower wages.​

​

Payroll taxes don't really count as each person is paying for their own benefit. In other words, paying for social security taxes is similar to putting the money in a retirement account.

The richest 1% of families controlled a record-high 38.6% of the country's wealth in 2016, according to a Federal Reserve report published on Wednesday. That's nearly twice as much as the bottom 90%, which has seen its slice of the pie continue to shrink. The bottom 90% of families now hold just 22.8% of the wealth, down from about one-third in 1989 when the Fed started tracking this measure. (Record inequality: The top 1% controls 38.6% of America's wealth. CNN Money)
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The top 1% don't pay income tax, their wealth does.

Wealth isn't subject to income taxes. The top 1% pay income taxes based on the money they earned during the year.

 

[mark kennedy]

The top 3% are mostly business owners and are the reason why our country and economy are great. They earned their money. We're benefiting from them.

How do you determine how much the top 3% should pay? They currently pay 52% of all income taxes. Is that too much or not enough?

The richest 1% control 38% of the wealth, the bottom 90% just 22.8% as of 2016. But you want them to flip the bill for government 50/50 and make the poor do community service. That sounds fair.

 

[samir]

The richest 1% control 38% of the wealth

They control 38% of the wealth because they worked hard to earn it.

But you want them to flip the bill for government 50/50 and make the poor do community service. That sounds fair.

It already works that way for some taxes like driver's license and car registration fees and some local taxes. Everyone pays the same amount per gallon for the federal and state gas tax. Do you think we should tax the rich $20/gallon for gas and not charge the poor anything?

 

[mark kennedy]

They control 38% of the wealth because they worked hard to earn it.

We all have opinions and we all use our own.

It already works that way for some taxes like driver's license and car registration fees and some local taxes. Everyone pays the same amount per gallon for the federal and state gas tax. Do you think we should tax the rich $20/gallon for gas and not charge the poor anything?

I think if you had your way modern America would be medieval Europe. I'm not so sure it's not.

 

[Hank77]

Republicans plan to collapse the number of brackets from seven to three. The standard deduction would almost double to $12,000 for a single filer and $24,000 for married couples, meaning Trump can accurately argue that many more low income earners would pay no tax under his plan. As we previously reported, the top tax bracket would fall from 39.6% to 35%. (Republicans agree to raise bottom tax rate, double standard deduction)
​

Is anyone tracking this, I mean it's awesome in it's audacity. It's only going to raise the deficit by a couple of trillion dollars over time and you really get to put it to the poor. Sounds like a GOP dream come true.

Where is the standard deduction for single parent families? What will they file under? The two parent family get 24,000, the single parent get 12,000???

Are there still personal exemptions for the number of dependents in a family? If not many families will have a higher taxable income than they do now.

The married couple filing jointly for 2017 standard deduction is 12,700 and the personal exemption is 4,050.

2017 For a family of four making $50,000 - 12,700 - 16,200 [4,050 *4] = $21,100 taxable income.
New Plan -family of four making $50,000 - 24,000 = $26,000 taxable income

 

[cow451]

Tax cuts for the wealthy. Color me surprised.

 

[mark kennedy]

Where is the standard deduction for single parent families? What will they file under? The two parent family get 24,000, the single parent get 12,000???

Are there still personal exemptions for the number of dependents in a family? If not many families will have a higher taxable income than they do now.

The married couple filing jointly for 2017 standard deduction is 12,700 and the personal exemption is 4,050.

2017 For a family of four making $50,000 - 12,700 - 16,200 [4,050 *4] = $21,100 taxable income.
New Plan -family of four making $50,000 - 24,000 = $26,000 taxable income

I'm not getting the math here:

The package, the T.P.C. finds, would overwhelmingly help the wealthy. Including the tax hikes (like doing away with personal exemptions and other common deductions), the overall plan would give the average family earning under $25,000 per year a $40 tax cut, or a 0.3 percent boost in after-tax income. The top 0.1 percent, earning above $3.4 million a year, would get an average tax cut of $937,700, or a 13.3 percent boost in after-tax income. (Trump’s Tax Plan Would Be 23,500 Times Better for the Ultra-Rich Than the Poor. Vanity Fair)
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It's an unfunded tax cut for the rich:

According to the Tax Policy Center, the cuts that Team Trump included in their bullet-point outline last April could result in a loss of revenue between $3.4 trillion and $7.8 trillion over 10 years.
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​

 

[Hank77]

I'm not getting the math here:

I don't know how to figure the average top .01 taxable income because there are so many variables.

But I don't get their $40 tax savings for the average family making under $25,000 a year. With the standard deduction and the personal exemptions they have now they wouldn't have any taxable income. So they must be figuring in the tax credit for working families? I'd have to look but I think that credit tops out at around $3,900? So maybe that is where the $40 increase is coming from.

But the middle income families are going to get the shaft and so are the single parent families. For every family member they lose $4,050 in exemptions that the $24,000 standard deduction will not make up for.
As your article says, this is tax increase for many families.

Including the tax hikes (like doing away with personal exemptions and other common deductions),