Tax Reform Framework

[StarTrekDoc]

What, you can't make final calculations on tax burden on the comprehensive, complete 7 -page proposal on tax reform? 

I do agree - for the vast majority this shuffling the deck chairs.  If it simplifies, I'm all for it.   I do hope that the LLC for our business will lower -- that would definitely probusiness move for many middle America to level field against big corporate America (and a giant loophole too so have to be careful when fluffing out that 7 page executive summary).

[hightower]

I wasn't referring to anything you said, sorry. It's just a common thing that rebulicans have campaigned on for years. I was pointing out the irony of their current plan in light of what they claimed they would do.

[ScientistPhysician]

According to the Tax Policy Center, 60% of individuals making $150,000-$300,000 will see a tax increase. On average, people in that income group will pay $800 more in taxes with the Trump plan.

 

http://www.taxpolicycenter.org/publications/preliminary-analysis-unified-framework/full

 

This is a huge middle finger to doctors, the most heavily taxed group in America with no relief.

[q-school]

thanks for posting the link

to my mind, this is not a huge middle finger to doctors, with all due respect.  i surmise there are a fair number of doctors in this group who are 1%ers who would apparently get a significant increase.  depending on your personal beliefs this may or may not be unfortunate.  yes the 1/3 making between 150k and 300k may pay more but it doesn't look like a huge amount more.  i do feel for those who work hard and are in HCOL areas where 150k may not be that much, but for 1-2k differences, it is not enough to make me meaningfully change behaviors.

i'm pretty sure i accidentally pay that much extra by not being super tax efficient like most of you guys.

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from the taxpolicycenter link

(--the formatting is all messed up  it was a cut and paste, my apologies)

In 2018, taxes would decline by nearly $1,600 on average, increasing after-tax incomes by 2.1 percent (table 2). Tax payer groups in the bottom 95 percent of the income distribution would see modest tax cuts, averaging 1.2 percent of after-tax income or less. The benefit would be largest for tax payers in the top 1 percent(those making more than $730,000), who would see their after-tax income increase 8.5 percent.

In 2018, about 12 percent of taxpayers would face a tax increase of roughly $1,800 on average. More than a third of taxpayers making between

about $150,000 and $300,000 would pay more, mainly because most itemized deductions would be repealed.

[GXA]

I am all for more money in my pocket with tax cuts, however I am not convinced that these cuts "will pay for themselves" - even with dynamic scoring methods.  The libertarian in me cheers for a smaller and less involved government, but cutting taxes without also reducing spending will just further add to our deficit and debt.

Either we need to cut spending and cut taxes (ideal but impossible for our elected officials), or simply acknowledge our spending cannot be reduced and come up with a simplified tax structure to support what we need.

That being said, once an entitlement is added, it becomes cruel and unusual to try to take it away, thus the natural inertia of government and programs is to forever grow...  Maybe we cut taxes to starve the government, eventually programs may shrink as we cannot afford them...