jonny5
DP Veteran
- Joined
- Mar 4, 2012
- Messages
- 27,581
- Reaction score
- 4,664
- Location
- Republic of Florida
- Gender
- Male
- Political Leaning
- Libertarian
This is actually a plan theyve had for about a year.
-reduce tax brackets to 3
-tax cap gains at ordinary income rate with a 50% exclusion
-increase standard deduction
-increase child tax credit
-eliminate all deductions except mortgage and charity
-eliminate AMT
-eliminate estate and gift taxes
-lower corp taxes
I think its a step in the right direction, but still too complicated. Multiple brackets, multiple deductions (and others will creep back in), too many credits that will take people off tax rolls all together. Tax Foundation says it will reduce revenue by 2 trillion over 10 years without factoring in stimulus effect. -200 Billion when estimating stimulus effect (higher income tax, lower corp taxes). More jobs, investment, wages, tax savings, though.
The biggest problem will be political. Liberals will not accept any tax plan that reduces taxes for corporations or the rich, even if it helps everyone else as well, and the economy as a whole. And of course the media will run with the 2 trillion dollar 'cost' as if nothing else is happening.
https://taxfoundation.org/details-and-analysis-2016-house-republican-tax-reform-plan/
-reduce tax brackets to 3
-tax cap gains at ordinary income rate with a 50% exclusion
-increase standard deduction
-increase child tax credit
-eliminate all deductions except mortgage and charity
-eliminate AMT
-eliminate estate and gift taxes
-lower corp taxes
I think its a step in the right direction, but still too complicated. Multiple brackets, multiple deductions (and others will creep back in), too many credits that will take people off tax rolls all together. Tax Foundation says it will reduce revenue by 2 trillion over 10 years without factoring in stimulus effect. -200 Billion when estimating stimulus effect (higher income tax, lower corp taxes). More jobs, investment, wages, tax savings, though.
The biggest problem will be political. Liberals will not accept any tax plan that reduces taxes for corporations or the rich, even if it helps everyone else as well, and the economy as a whole. And of course the media will run with the 2 trillion dollar 'cost' as if nothing else is happening.
https://taxfoundation.org/details-and-analysis-2016-house-republican-tax-reform-plan/