US Federal Income Tax Reform

[Johnnie Trump]

[Johnnie Trump]

[Johnnie Trump]

[KingsX]

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Democrats have been saying the GOP is only interested in tax cuts for the rich...
and Republicans have been busy making it a self-fulfilling prophecy.

[KingsX]

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Another "bait and switch."

Tomorrow [Wednesday] is NOT the "big reveal" day after all...
GOP cowards are only releasing the carrots not the sticks.


" President Trump and top Republicans will promise a package of far-reaching tax cuts for companies and individuals, people briefed on the planning said, but the GOP leaders will stop short of labeling many of the tax breaks they hope to strip away, putting off controversial decisions that threaten to sink the party's tax effort.

Republicans' "unified" framework, which they will release and promote Wednesday during speeches and meetings, aims to cut taxes by more than $5 trillion over 10 years and recoup more than half of that lost revenue by eliminating numerous tax breaks.

By refusing to specify on Wednesday which tax breaks could be jettisoned, GOP leaders make a calculated effort to try to postpone any backlash while they try to build a coalition, said the people, who spoke on the condition of anonymity because they were not authorized to discuss the internal negotiations. "



These are similar to the three tax rates in the GOP's 2016 "Blueprint - A Better Way"
[which had 12%, 25% and 33%.] Notice the lowest tax rate for the poorest people
INCREASES from 10% to 12%. If the GOP also does away with personal exemptions
as they planned to do in 2016, a mere doubling of the standard deduction will
NOT make up for the shortfall and will be a tax INCREASE for many families.


" There are currently seven individual income tax brackets, and the GOP plan would collapse those into three tax brackets; one at 12 percent of income, one at 25 percent of income, and one at 35 percent of income. "


more at link

https://www.washingtonpost.com/news/...ugh-decisions/

[KingsX]

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Trump reportedly plans to raise bottom tax rate to offset tax cuts for wealthy

" As President Donald Trump prepares to announce his plan to "cut taxes tremendously for the middle-class" tomorrow, details about the tax reform plan, which was largely constructed in secrecy by former Goldman Sachs employees now in the administration, are beginning to make their way to the public. On Tuesday, Axios reported Republicans have agreed on a plan to raise the bottom tax rate from 10 percent to 12 percent, while also doubling the standard deduction.

This increase in the bottom tax rate is one of the ways the Trump administration is planning on paying for the massive tax cut for the rich. Trumps plan is expected to slash the top individual tax rate from 39.5 percent to 35 percent.

[...]

While those measures, a raise in the bottom tax rate combined with a doubling of the standard deduction, in isolation could benefit low and middle income families, there are still major moving parts that have yet to be identified. For example, what will become of the personal exemption? Earlier Trump and Republican plans have proposed cutting it, which, if implemented would actually raise taxes on middle-income families. Bloomberg reports that a middle-income family with three kids would have to add $20,250 to their taxable income with the personal exemption gone, nearly doubling the new "benefit" they'd get from a standard deduction increase. The Trump administration has also proposed gutting the head of household filing status, which would cause a tax increase to 51 percent of single-parent households, about 5.8 million households."

more at link

https://thinkprogress.org/trump-repo...-55f07ec0b470/