Republican Tax Plan Revealed

[Vyuvarax]

The idea behind supply side economics is a farce, plain and simple.

You aren't saving one middle class family $800, you are saving every middle class family $800. Those middle class families immediately spend that $800 on something they wanted but couldn't afford. The businesses where the middle class families made purchases now have additional money to hire new workers, expand to new locations, invest in other businesses, or deposit money in the bank (where it can then be loaned out).

A tax break geared towards individuals immediately gives those individuals more spending power, which boosts the economy. A tax break geared towards corporations has the potential to boost the economy in the future, depending on how the corporation decides to use the money.

Which, as with every example of corporate tax cuts, that money does not go here because the growth potential in the U.S. is not as high or lucrative as other places.

[Antiganon]

Which, as with every example of corporate tax cuts, that money does not go here because the growth potential in the U.S. is not as high or lucrative as other places.

Irrelevant. Even if the growth potential was the same, you would have to assume that the companies who receive the windfall would opt for growth, rather than a stock buyback, CEO bonus, larger dividend disbursement, etc.

Some (smaller) companies would opt for growth, sure. Larger companies who are already at high % market share? Probably not. Companies where the owners don't have a strong controlling interest? Probably not. Closely-held companies where the owners are greedy bastards? Probably not there either.

[Zan15]

All exemptions should go. Not just some. All. And the rate should be cut significantly, coupled with a proportional rise in state taxes, as federal government services and responsibilities (particularly for entitlement programs) are transferred to State Government hands. You either do basically what we're doing already (and have for decades), or you do a State-centric alternative.

s.

Cute you want entitlement programs transferred to state govt.

And how pray tell will they afford it?

You already have the few rich states providing all the extra funding for other states entitlement programs, do away with this and you will have a huge string of bankruptcies or a flood of huge tax increases that will cripple these states (mostly red). They will never do it because of which states would be the loser.

You can just look at Medicaid funding to see which states in the biggest entitlement program get money and which are the funding states.

https://aspe.hhs.gov/basic-report/fy...ce-percentages

There is a reason why states like CA, NY, TX get back less then 1 dollar for every dollar they send the feds and there is not enough state income to raise taxes enough to cover the difference.


Though i fully support the idea that funding to the states should be equalized, far too long has 20 or so states been welfare queens off just a handful of rich states.

[Vyuvarax]

Irrelevant. Even if the growth potential was the same, you would have to assume that the companies who receive the windfall would opt for growth, rather than a stock buyback, CEO bonus, larger dividend disbursement, etc.

Some (smaller) companies would opt for growth, sure. Larger companies who are already at high % market share? Probably not. Companies where the owners don't have a strong controlling interest? Probably not. Closely-held companies where the owners are greedy bastards? Probably not there either.

That’s fair. I suppose my point was that companies without high market shares already would not be inclined to invest here as the return is not as good. There are other reasons the theory falls apart, as you’ve pointed out.

[Edge-]

http://www.newsweek.com/tax-cuts-rep...s-trump-701094

REPUBLICAN HOUSE MEMBERS THINK A $450K SALARY IS MIDDLE CLASS

That's rich! Republicans suddenly believe that one percenters are barely struggling to be in the middle class, party officials revealed.

On Thursday, House Republicans issued a fact sheet about their new tax cut plan that referred to Americans earning $450,000 a year as “low- and middle-income” — even though that income level would put those taxpayers in the top 0.05% of all individual Americans.

The median household income in the United States is $59,039, after all.

The GOP made the announcement as part of the rollout of the tax cut plan, saying they would cut tax rates from 39.6 percent to 35 percent for those $450,000-earning middle class members — but the announcement was quickly overshadowed by the Republicans' bizarre understanding of wealth.



"Did somebody make a mistake?" laughed AFL-CIO Policy Director Damon Silvers when told of the income classifications by the GOP. "[Republicans] think that the income level of the top one percent is lower- and middle-class. This is a world where if you make less than $500,000, you don't exist."

There is no formal definition of the American middle class, but the Tax Policy Center puts its “middle quintile” between $48,300 and $85,600 a year.

Sixty percent of Americans say that the tax plan favors the wealthy, according to a new poll. Democrats are calling the bill a “Trojan Horse,” that helps the rich under the guise of aiding the middle class.

“This is a middle-class con job,” said Senator Ron Wyden of Oregon, a democrat.

It’s a bill that will “benefit the wealthy and the powerful to the exclusion of the middle class,” according to Senator Chuck Schumer of New York.

Republicans are also concerned. 63 percent of Republicans believe that deficit reduction is more important than tax cuts for corporations, and 75 percent said it was more important than tax cuts for the wealthy, according to a survey.

“The optics don’t look very good...with 39.6 going to 35,” said GOP Senator David Perdue of Georgia.

Republican strategist John Weaver agreed. This “does not reflect the hopes and aspirations of Main Street Republicans around the country,” he said.

Some GOP Senators don’t mind the implications. Senator Richard Shelby of Alabama took a trickle-down approach. “People with money save money, create jobs, create risk," he said. "People with no money — I’ve been there — create nothing. You’re trying to live, to survive.”

It should be pointed out that Shelby, who has been in government since 1970 and has been a U.S. senator since 1986, has an estimated net worth of $4.2 million, according to data from Roll Call.

[Zan15]

hahahah
ahaha
hahahahahaha


only took them 1 day to fix the screws...


WASHINGTON (AP) — House Republicans on Friday quietly made changes to their far-reaching tax overhaul: Now its tax cuts would be less generous for many Americans.

A day after the GOP unveiled its plan promising middle-class relief, the House’s top tax-writer, Rep. Kevin Brady, released a revised version of the bill that would impose a new, lower-inflation “chained CPI” adjustment for tax brackets immediately instead of in 2023. That means more income would be taxed at higher rates over time — and less generous tax cuts for individuals and families.

The change, posted on the website of the Ways and Means Committee, reduces the value of the tax cuts for ordinary Americans by $89 billion over 10 years compared with the legislation released with fanfare Thursday.

As wages rise, middle-class taxpayers would have more of their income taxed at the 25 percent rate instead of at 12 percent, for instance.

[Xeones]

hahahah
ahaha
hahahahahaha


only took them 1 day to fix the screws...


WASHINGTON (AP) — House Republicans on Friday quietly made changes to their far-reaching tax overhaul: Now its tax cuts would be less generous for many Americans.

A day after the GOP unveiled its plan promising middle-class relief, the House’s top tax-writer, Rep. Kevin Brady, released a revised version of the bill that would impose a new, lower-inflation “chained CPI” adjustment for tax brackets immediately instead of in 2023. That means more income would be taxed at higher rates over time — and less generous tax cuts for individuals and families.

The change, posted on the website of the Ways and Means Committee, reduces the value of the tax cuts for ordinary Americans by $89 billion over 10 years compared with the legislation released with fanfare Thursday.

As wages rise, middle-class taxpayers would have more of their income taxed at the 25 percent rate instead of at 12 percent, for instance.

Did they just raise taxes even higher on the middle class than they initially did?

[Blur4stuff]

well, republicans thinking $450k is middle class explains a lot

[Rukh]

See it helps all those middle-class people struggling to get by on 450k a year. They really need a hand.

[Xeones]

well, republicans thinking $450k is middle class explains a lot

Don't you know the difference between people and peasants?

[Zan15]

HAHAHAH. fox news has the tax plan buried. there is exactly 2 stories on it on the entire front page about 90% of the way down

Man when you cannot even get Fox news to print positive news about your tax plan, it must really suck

[Grapemask]

HAHAHAH. fox news has the tax plan buried. there is exactly 2 stories on it on the entire front page about 90% of the way down

Man when you cannot even get Fox news to print positive news about your tax plan, it must really suck

Unfortunately, even liberal-friendly outlets are not giving this bill nearly the attention it deserves. It's semi-buried or missing altogether even on the far lefts like MSNBC and HuffPo, because that's the beauty of pro-corporation and pro-wealthy tax reform. The media is a wealthy corporate entity, even on the left.

[Breccia]

Don't you know the difference between people and peasants?

Dude, they don't even know the difference between peasants and game fowl.

[Adam Jensen]

Oddly enough, the bill was supposed to be tax relief for the middle class. For someone who's defending it, this is an interesting admission to make. But, hey, you're not a Senator or Rep. Not your job to defend it 100% to the death.

Yeah, but Republicans have a different definition of "Middle Class" than the rest of us:

http://www.newsweek.com/tax-cuts-rep...s-trump-701094

[Breccia]

Yeah, but Republicans have

Yeah, yeah, I saw it. Jeez.

[Poopymonster]

You're looking at it from the wrong angle.

You see, if you try trickle down enough it's bound to have a positive correlation to growth one of these times. They just haven't tried it enough times yet, give them a few chances.

They haven't been given enough tax breaks for it to work yet. I'm sure if we give them another break, maybe 2 or 3 more.....fine. 12 more. Dammit, fine. 20 more and that's final. THEN it'll trickle down. It'll totally work. Just like #thoughtsandprayers.

[PC2]

They haven't been given enough tax breaks for it to work yet. I'm sure if we give them another break, maybe 2 or 3 more.....fine. 12 more. Dammit, fine. 20 more and that's final. THEN it'll trickle down. It'll totally work. Just like #thoughtsandprayers.

$19 trillion GDP economy, capitalism is working pretty dang good.

[Vyuvarax]

$19 trillion GDP economy, capitalism is working pretty dang good.

For rich people it’s working better than ever. For middle class it hasn’t gotten better in decades. Oops, by your conservative standards I mean extremely poor people making 50k a year.

[SirBeef]

You know there's probably something in the Bible that tells Christians and other religious people to not do this stuff, just like there's probably something in the Bible telling people to stop enriching the already wealthy at the expense of the poor and sick. Too bad we can't go into detail about religion on these forums, it would make for some interesting discussions to see if the most religious political party in the United States is being a bunch of hypocrites in regards to their precious religion.

Christ himself said in the bible give to the Lord what is his and give to Cesar what is his. Basically he told his people to pay their taxes.

[PC2]

For rich people it’s working better than ever. For middle class it hasn’t gotten better in decades. Oops, by your conservative standards I mean extremely poor people making 50k a year.

That's why everybody has to up their skill level and become more valuable in the marketplace. Expecting a middle class lifestyle with low skills is not reasonable.