This "Plan"
Like ACA (Obama-care) "Repeal Plan" – DOA
(Hopefully)
Praise the Lord for this “Tax Plan”
(Now I can afford my own jet and not use Uncle Sam's)
The post for today is based on the
so-called “Trump Tax Plan.” It is what I call “T-3: Trump’s Tax Tribute” (to his rich
pals), and a tribulation for the rest of us down the road, cite:
The main story
comes from The AP – my emphasis on this “plan” comes from
that piece. I call it: “The good, the bad, and the ugly” (not original, I know,
but catchy nevertheless).
Sadly, it is
mostly or solely designed and modeled by and strictly for “Trump Empire, Inc.” more
in layman’s terms.
Highlights:
·
It
nearly doubles the standard deduction to $12,000 for individuals and $24,000
for families (i.e., not taxed from income).
·
Reduces
total number of personal tax brackets from the current 7 to just 3 – GOP claims
as years ago: Most Americans will be able to file their taxes on a postcard.
·
Individual
tax rates would be 12, 25, and 35 percent.
It recommends (Note: does not mandate): A surcharge
for the very wealthy but, it does not set the income levels at which the rates
would apply either. Thus, it's not clear how much of a tax cut would go to a
typical rich family.
·
It
helps families by increasing the child tax credit and
opening it to families with higher incomes (Note: why they can’t afford a nanny). Currently that
credit is $1,000 per child.
·
It
would limit the “marriage penalty” on the joint income of couples who both
work.
·
It
proposes a new tax credit of $500 to help pay for the care of the elderly and
the sick who are claimed as dependents by the taxpayer.
·
It
keeps deductions for mortgage interest and charitable giving in place, but the plan seeks to end most itemized deductions that
can reduce how much affluent families pay.
·
It
retains existing tax benefits for college and retirement savings such as 401k contribution
plans.
I call this last
part, the boxed off part for we the 98% of public,
the “Trump
de Grâce.” Rather than cutting taxes equally across the board that
would make sense and serve us all, he whacks off our heads. Tough words I know,
but a crappy plan,
1. The
estate tax — which is levied on millionaires — would be eliminated, a likely
boon for wealthy individuals who inherit businesses, investments and real
estate.
IMPACT OF ESTATE TAX ELIMINATION SEEN HERE - neat um?
2. Companies
would find themselves paying substantially lower tax rates, part of an effort
to make U.S. businesses more competitive globally.
3. Corporations
would see their top tax rate cut from 35 percent to 20 percent.
4. For a
period of five years, companies could further reduce how much they pay by
immediately writing off their investments.
5. New
benefits would be given to firms in which the profits double as the owners'
personal income. They would pay at a 25 percent rate, down 39.6 percent.
Note: All that creates a possible loophole
for rich investors, lawyers, doctors, and others, but Trump administration
officials say they will design measures to prevent any abuses.
Another guffaw
now authorized if you believe that, coupled with this with them also saying the
tax plan is focused on helping middle class families.
The kicker:
Despite six months of talks with congressional leaders — the outline above still
lacks vital details about how middle class families would fare.
There are signs,
however, (and no surprise here) that the wealthiest sliver of Americans could
still reap tremendous benefits from the proposed changes, even
though Trump has suggested that rich will not be better off.
I note: Trump is a serial lying con-artist,
so what else would we expect him to do?
Yep that’s
right:
He will do the exact opposite
of what he says. Then he turns right around and says he didn’t say what the
heard him say.
How ironic is that? Wait and see. This T-3 plan is in
short no plan at all except for greater wealth for the top 1% plus a few more at
the top who are already ultra-wealthy.
Thanks for stopping by.
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