As the GOP Now Moves to Tax Reform, Lets Remember Trump's Promises:

candycorn

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Aug 25, 2009
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Deep State Plant.
From the campaign; the promise was that Individuals making $25,000 or less and couples making $50K or less will pay $0.00 in Taxes:

"
New York (CNN)Donald Trump is vowing to drastically cut income taxes for millions of Americans across the wealth spectrum while casting aside loopholes popular on Wall Street.

"It will provide major tax relief for middle income and for most other Americans. There will be a major tax reduction," Trump said Monday at a press conference at Trump Tower in New York as he unveiled his plan to revamp the tax code. "It'll simplify the tax code, it'll grow the American economy at a level that it hasn't seen for decades."
The highly anticipated tax plan comes as Trump is being pressed to provide more details about how his administration would govern.
One of the biggest beneficiaries appears to be families that draw the smallest paychecks. Individuals that make less than $25,000 (and $50,000 for married couples) would pay no income taxes under Trump's plan."

Along with $0.00 in dividend and cap gains:

"In terms of long-term capital gains and qualified dividends, Trump wants to attempt to encourage investment, which is no surprise since his fortune was made through investments in real estate. Single and married filers could earn up to $50,000 and $100,000, respectively, without paying a cent in dividend and capital gains taxes. From there, as you can see above, capital gains taxes would grow to 15% or top out at 20%, depending on which income category you and your household fall into."

Donald Trump's Income Tax Brackets: How Much Would You Owe? -- The Motley Fool

Should be interesting to see how they spin when they come up short.
 
I'm surprised that the tax flight issue due to state and local taxes was not mentioned in your link. That will be the major effect and that will drive most of the blue wall into chapter 3 rather quickly. Like the pipeline authorizations that will adversely affect Iran and Russia far more than it help the US Trump does like the indirect approach to defeating his opponents.
 
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It is apparent from Trump's 2005 Federal tax return as leaked that he would like to undo the 1979 alt min tax since he paid $31 million in taxes for it on his $151 million of annual gross income that year. Those are approximate numbers according to my memory of the news flash.

I think this kind of self interest could torpedo the individual tax reform.

On the corporate side, in order to compete with Ireland, the US corporate tax rate should come down to 15% like Trump himself has proposed. The DEM's have proposed 25% and the GOP 20%. So Trump is the leader here.

The other Trump and Ryan proposals so far that are being mulled over are a bit more radical:

- no interest deduction for corporations anymore

- no COGS deduction for imported goods

- no tax on revenues from exports (this proposal is probably illegal under the GATT)

- no corp alt min tax except for the NOL limitation

- a catch-up tax on cumulative foreign earnings of overseas affiliates

- current taxation on all overseas earnings of any affiliate

- a 10% one-time tax on repatriations of funds back to the USA, same as W's 5% tax back in 2005.

These are radical proposals. Apple, Google, and Walmart will all fight them hard because their tax bills are going to become astronomical since they have been packing away income into foreign tax havens like Ireland, Singapore, Switzerland, Israel, and Caymans.

Generally I favor all of them except the removal of the individual alt min tax and also the corp export subsidy and 10% repatriation.
 
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Ryan and Trump can easily blow this the same way they blew Trumpcare.

Too many tax benefits for the rich.

Too much cost for the Fed Govt.

When the OMB runs the projections on this, everyone will see huge deficits resulting.

So it is a big Reagan-esque tax give back.

But the Feds cannot afford it. The far right will therefore be up in arms because it does not balance the budget -- it just makes it worse.
 
I'm surprised that the tax flight issue due to state and local taxes was not mentioned in your link. That will be the major effect and that will drive most of the blue wall into chapter 3 rather quickly. Like the pipeline authorizations that will adversely affect Iran and Russia far more than it help the US Trump does like the indirect approach to defeating his opponents.
What is Chapter 3?
 
The main problem that the USA has is that it/she is funding all the expense of policing the 7 seas and continents of the Earth. So the USA is still on a war footing while the rest of the world is getting a huge peace dividend (in Reagans own gobblygook for his military RIF).

So US spending is high.

But even so, 75% of Federal spending is nondiscretionary. It consists of interest and social payments. So only 25% of it is related to operations of the Govt.

That's why the GOP always calls attention to Medicare, since this is an expensive program. This is why ACA is self funding with its mandates.

The national debt could be paid off by printing money and monetizing it. That might trigger inflation however as rich people take their Treasury redemptions and flood the real estate markets with it. It could also drive down the stock market as they pour money into it.

If you monetize and pay off the national debt, you get rid of the interest burden however. But the inflation risk might hurt everybody. Rich people given more money is hazardous to everybody's financial health.

W and his brother Jeb both proposed OASDI privatization, but that is a really dumb idea according to most commentators and I agree with them.
 
In view of all this burden on the Fed Govt, the far right is not going to be happy about approving tax cuts.

And that could torpedo Trump tax reform just as it torpedoed Trumpcare.

So the outlook is not brilliant for the Mudville White House today.
 
I'm surprised that the tax flight issue due to state and local taxes was not mentioned in your link. That will be the major effect and that will drive most of the blue wall into chapter 3 rather quickly. Like the pipeline authorizations that will adversely affect Iran and Russia far more than it help the US Trump does like the indirect approach to defeating his opponents.
What is Chapter 3?
bankruptcy
 
In view of all this burden on the Fed Govt, the far right is not going to be happy about approving tax cuts.

And that could torpedo Trump tax reform just as it torpedoed Trumpcare.

So the outlook is not brilliant for the Mudville White House today.
You have moderates on one side and far right ideologues on the other. I dont think there is any legislation that they will both agree on
 
I'm surprised that the tax flight issue due to state and local taxes was not mentioned in your link. That will be the major effect and that will drive most of the blue wall into chapter 3 rather quickly. Like the pipeline authorizations that will adversely affect Iran and Russia far more than it help the US Trump does like the indirect approach to defeating his opponents.
What is Chapter 3?
bankruptcy
Look far and wide, but I dont think you will ever find a chapter 3 bankruptcy, anywhere
 
In view of all this burden on the Fed Govt, the far right is not going to be happy about approving tax cuts.

And that could torpedo Trump tax reform just as it torpedoed Trumpcare.

So the outlook is not brilliant for the Mudville White House today.

Well, as we have record numbers of people (after his pledge is fulfilled of course *giggle*) paying $0 in taxes, we're going to be spending $1T on infrastructure at the same time and another $300B for the wall to nowhere.
 
This border equalization tax would hurt the lower middle class and poor by raising prices. The higher taxes will be at least partially passed onto consumers. It is also a anathema to tax reform. as it means that companies that export will pay little or no taxes while companies that import have high tax bills. Totally wrongheaded.
 
This border equalization tax would hurt the lower middle class and poor by raising prices. The higher taxes will be at least partially passed onto consumers. It is also a anathema to tax reform. as it means that companies that export will pay little or no taxes while companies that import have high tax bills. Totally wrongheaded.
Its simply a renamed Value added tax to turn X-M positive like in Germany. Speaking of which, there are only four markets worth being in: The EU, The US, China and India. BAT plus gutting Dodd-Frank drops the EU to second place.
 
Donald Trump is vowing to drastically cut income taxes for millions of Americans across the wealth spectrum while casting aside loopholes popular on Wall Street.
I'll believe he's going to do so when I see it happen. Trump's word is worth nothing in my book.
 
Like I said, I fully expect Ryan to fokk up tax reform the same way he fokked up Trumpcare.

And I fully expect Trump to put his brand on Ryans fokked up tax bill the same way he did with Trumpcare.

And then these two clowns will look like Keystone Cops on TV.

And Schumer on ABC's "This Week" explained why Trump-Tax will probably fail. Good show yesterday.
 
I fully expect Ryan to fokk up tax reform the same way he fokked up Trumpcare.
If Trump were any good as a collaborative leader, he'd cultivate an an arbor in which "bad seeds" of "bad grapes" aren't given the chance to grow into defeat. Frankly, I don't think the man has a clue of how to do that the field of public and tax policymaking. To date in his presidency, there's certainly been not so much as the most meager indication that he has.
 

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