Skip to main content

TR Memescape

  • Talkrational: in the name of the father and the fuzzi ghost

Topic: Tax Cut effort thread (Read 208 times) previous topic - next topic

0 Members and 1 Guest are viewing this topic.
  • MikeS
Tax Cut effort thread
So the WH has proposed the following summary.

Tax Brackets:  Drop from 7 to 3 (12%, 25%, 35%)
Individual Deduction:  Double to Single = $12k Married = $24k
Corporate Tax:  Drop from 35% to 20%
No more Alternative Min Tax
No more Estate Tax

As usual these are just bullet points and no real backup numbers or analysis has been done.  Initial 10 year cost is estimated at over $5.0 Trillion (depending on income ranges for the tax brackets).

The GOP, in both the house and senate, are trying to push this through without Democratic help so they need the numbers to be net neutral on cost over 10 years (less than $1 Trillion over ten years or something like that).  The Republicans and White House are claiming that dynamic scoring by claiming increased growth above 3% would pay for these cuts; except that dynamic scoring is NOT ALLOWED in calculating cost when considering a reconciliation package.  This was why the GOP needed health care repeal/replace to give enough savings to pay for the tax cuts.

I predict another shit storm in both houses until the House comes up with a kludge enough to please AllBut20 reps.  The Senate, not so much and another failure is in the works.

  • Bilirubin
  • Ain't nothing ta fuck wit'

  • JonF
Re: Tax Cut effort thread
Reply #2
Does the GOP Tax Plan Double the Standard Deduction? Not Really - Here's Why

Quote
Here's the important fine print: "To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction."

Here's how that math works. Let's say you are single with no dependents, and you have a moderate income. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds up to $10,400, or $11,650 if you're over 65.

The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That's a 15% increase -- except for seniors, who get a 3% increase.

And then your first dollar of taxable income would be subjected to a 12% tax rate, instead of the current 10%. But don't worry -- the framework says "additional tax relief," as yet unspecified, will emerge for you during the committee process.

For married couples, all the relevant amounts are doubled under the current tax code and under the Republican proposal, so the percent changes would be the same.

If you have children, your fate is uncertain. The plan would abolish the $4,050 exemption you get to take for each of your dependent children. But it would also increase the child tax credit -- by an unspecified amount. Once that amount is specified, you'll be able to figure out whether you face a tax increase or a tax cut or what.

Meanwhile, taxpayers who itemize their tax deductions for things like mortgage interest and state and local taxes would pay tax on more of their income under the Republican plan. The proposal says "most" itemized deductions would be abolished anyway, but those for mortgage interest and charitable giving would be retained. 
"I would never consider my evaluation of his work to be fair minded unless I had actually read his own words." - Dave Hawkins

Re: Tax Cut effort thread
Reply #3




How is Cohn so terrible at this? How did they not have a big strategy session before hand and lay out their answers and their consistent messaging?

  • ksen
Re: Tax Cut effort thread
Reply #4
Cohn's answers were probably the result of a big strategy session.

It's just that those thinking up White House strategy are a bunch of dummies.

Re: Tax Cut effort thread
Reply #5
It's hard to imagine a worse dumpster fire than this administration.
Love is like a magic penny
 if you hold it tight you won't have any
if you give it away you'll have so many
they'll be rolling all over the floor

  • MikeS
Re: Tax Cut effort thread
Reply #6
The messaging is mixed and somewhat incoherent.  Interviews this afternoon from the Freedom Caucus (Mark Meadows) to the Democrats are finding no coherent or cogent plan to move forward.  Which means every GOP hack will push forward their own agenda and their own interpretation of what's been already published.

And Trump will sit in the background either cheerleading or lambasting depending on his mood or the situation at hand without knowing what or where the negotiations are at on the tax plan at the moment (and which plan since the House and Senate will be moving in different directions anyway).

The press is already comparing the start of this bill with the start of Obamacare Repeal/Replace, so expectations are high for another shit show.

Re: Tax Cut effort thread
Reply #7
I guess we should give the GOP some credit. They've been saying for decades that government is the problem, not the solution. I guess they keep wanting to get elected to prove that they're correct. 

  • ravenscape
  • Administrator
  • Triggered
Re: Tax Cut effort thread
Reply #8

  • meepmeep
  • Administrator
  • zombiecat queen
Re: Tax Cut effort thread
Reply #9
I guess we should give the GOP some credit. They've been saying for decades that government is the problem, not the solution. I guess they keep wanting to get elected to prove that they're correct. 

- hey man I think there's something wrong with your windshield
- what? no, it's fine, no cracks in it or anything
- no, but, really, *smashes windshield with a tire iron*, see, look, i think it's pretty broken, buddy, and by the way *sets car on fire, murders entire family*. see what i mean? we should really do something about this problem, *steals other guy's wallet and walks away whistling*

hope you enjoyed my delightful mini-play

  • el jefe
  • asleep till 2020 or 2024
Re: Tax Cut effort thread
Reply #10
that's a point Jon Stewart made a while back.  conservatism, at least as it is conceived and operates today, is too easy.  they say government is terrible, then they use whatever power they have to sabotage it as best they can, and say "see?  told you so."

  • el jefe
  • asleep till 2020 or 2024
Re: Tax Cut effort thread
Reply #11
several republicans, including now-retiring senator corker, are opposing the plan because it adds to the deficit.  they are actually sticking to their stated principles rather than the usual republican game of screaming about the deficit when democrats are in power and then saying fuck all that when they're in power.  also, while they are taking dynamic scoring into account, they are being realistic about it, rather than just assuming fairy tale growth to make up the lost revenue.

http://thehill.com/policy/finance/353969-deficit-hawks-voice-worry-over-direction-of-tax-plan

Re: Tax Cut effort thread
Reply #12
I guess we should give the GOP some credit. They've been saying for decades that government is the problem, not the solution. I guess they keep wanting to get elected to prove that they're correct. 

- hey man I think there's something wrong with your windshield
- what? no, it's fine, no cracks in it or anything
- no, but, really, *smashes windshield with a tire iron*, see, look, i think it's pretty broken, buddy, and by the way *sets car on fire, murders entire family*. see what i mean? we should really do something about this problem, *steals other guy's wallet and walks away whistling*

hope you enjoyed my delightful mini-play