Jeb's Tax Plan

[g5000]

BACKGROUNDER: Jeb Bush’s Tax Reform Plan | Jeb 2016

The convoluted and contradictory nature of the U.S. tax code demands reform. It has been almost 30 years since we overhauled the tax code. During that time, special loopholes and deductions have skyrocketed, tax rates have risen and the tax code has become even more complex.

The tax code’s deductions, credits, and exclusions mean similarly situated taxpayers may have vastly different tax liabilities.

No shit. How many times have you guys heard me say the exact same thing?

These tax expenditures require higher marginal tax rates and distort economic behavior.

Yep. I have said tax expenditures are a massive government behavioral control program.

Jeb's made a pictorial for us. Notice how he caps all deductions to 2 percent of AGI:

 

[g5000]

Today, the tax code is a labyrinth littered with thousands of special-interest giveaways, subsidies and other breaks written to favor Washington insiders. The code is rigged with multiple carve-outs for favored industries. It penalizes people for moving up the economic ladder.

Itemizing deductions leads to more complicated tax returns, requiring more time and effort to file. These deductions often result in taxpayers with similar incomes incurring dramatically different tax liabilities.

In the aggregate, the proposal would reduce the number of itemizers by almost 80 percent (from 47 million to 13 million). This reform will simplify taxes dramatically for these 34 million taxpayers.

Outstanding.

 

[occupied]

No tax reform will ever pass congress that raises taxes on the "job creators" in any way.

 

[g5000]

No tax reform will ever pass congress that raises taxes on the "job creators" in any way.

Jeb's tax plan would lower taxes on the rich, not raise them.

I have noticed that every Republican tax plan involves eliminating some tax expenditures.

When you eliminate tax expenditures, you can lower tax rates. Every tax deduction/exemption/credit comes is coming out of other people's pockets. A deduction is other people's money.

It's great the GOP is finally, finally, finally catching on to just how crooked a system we have.

 

[g5000]

I think tax reform is more important than any other issue we need to address.

 

[occupied]

No tax reform will ever pass congress that raises taxes on the "job creators" in any way.

Jeb's tax plan would lower taxes on the rich, not raise them.

I have noticed that every Republican tax plan involves eliminating some tax expenditures.

When you eliminate tax expenditures, you can lower tax rates. Every tax deduction/exemption/credit comes is coming out of other people's pockets. A deduction is other people's money.

It's great the GOP is finally, finally, finally catching on to just how crooked a system we have.

OK what am I missing here? If eliminating loopholes and deductions would actually lower taxes on the wealthy and the standard deductions are substantially raised on everyone else would this not blow a hole in revenue and raise the deficit?

 

[g5000]

No tax reform will ever pass congress that raises taxes on the "job creators" in any way.

Jeb's tax plan would lower taxes on the rich, not raise them.

I have noticed that every Republican tax plan involves eliminating some tax expenditures.

When you eliminate tax expenditures, you can lower tax rates. Every tax deduction/exemption/credit comes is coming out of other people's pockets. A deduction is other people's money.

It's great the GOP is finally, finally, finally catching on to just how crooked a system we have.

OK what am I missing here? If eliminating loopholes and deductions would actually lower taxes on the wealthy and the standard deductions are substantially raised on everyone else would this not blow a hole in revenue and raise the deficit?

Eliminating tax expenditures (deductions/credits/exemptions) would enable the lowering of tax rates on everyone, not just the rich.

I don't know where you got the idea Jeb's plan raises deductions on the non-rich. It actually puts a cap on everyone's deductions.

 

[occupied]

No tax reform will ever pass congress that raises taxes on the "job creators" in any way.

Jeb's tax plan would lower taxes on the rich, not raise them.

I have noticed that every Republican tax plan involves eliminating some tax expenditures.

When you eliminate tax expenditures, you can lower tax rates. Every tax deduction/exemption/credit comes is coming out of other people's pockets. A deduction is other people's money.

It's great the GOP is finally, finally, finally catching on to just how crooked a system we have.

OK what am I missing here? If eliminating loopholes and deductions would actually lower taxes on the wealthy and the standard deductions are substantially raised on everyone else would this not blow a hole in revenue and raise the deficit?

Eliminating tax expenditures (deductions/credits/exemptions) would enable the lowering of tax rates on everyone, not just the rich.

I don't know where you got the idea Jeb's plan raises deductions on the non-rich. It actually puts a cap on everyone's deductions.

I'm asking what this plan does to overall revenue. There is nothing I could find in the plan to address this. You say everyone's taxes are reduced, that's clear, but the last time a Bush had a tax plan it substantially raised the deficit and the expected surge of economic activity to make up for the shortfall never really materialized.

 

[g5000]

No tax reform will ever pass congress that raises taxes on the "job creators" in any way.

Jeb's tax plan would lower taxes on the rich, not raise them.

I have noticed that every Republican tax plan involves eliminating some tax expenditures.

When you eliminate tax expenditures, you can lower tax rates. Every tax deduction/exemption/credit comes is coming out of other people's pockets. A deduction is other people's money.

It's great the GOP is finally, finally, finally catching on to just how crooked a system we have.

OK what am I missing here? If eliminating loopholes and deductions would actually lower taxes on the wealthy and the standard deductions are substantially raised on everyone else would this not blow a hole in revenue and raise the deficit?

Eliminating tax expenditures (deductions/credits/exemptions) would enable the lowering of tax rates on everyone, not just the rich.

I don't know where you got the idea Jeb's plan raises deductions on the non-rich. It actually puts a cap on everyone's deductions.

I'm asking what this plan does to overall revenue. There is nothing I could find in the plan to address this.

Reducing/eliminating tax expenditures increases revenue.

If we eliminated all tax expenditures, revenues would increase $1.2 trillion a year. That's your baseline.

It is very clear that Jeb's plan reduces/eliminates tax expenditures quit a bit. Not totally, but substantially. Therefore, his plan increases revenues.

Increased revenues allow for lower tax rates.

 

[TyroneSlothrop]

 

[occupied]

No tax reform will ever pass congress that raises taxes on the "job creators" in any way.

Jeb's tax plan would lower taxes on the rich, not raise them.

I have noticed that every Republican tax plan involves eliminating some tax expenditures.

When you eliminate tax expenditures, you can lower tax rates. Every tax deduction/exemption/credit comes is coming out of other people's pockets. A deduction is other people's money.

It's great the GOP is finally, finally, finally catching on to just how crooked a system we have.

OK what am I missing here? If eliminating loopholes and deductions would actually lower taxes on the wealthy and the standard deductions are substantially raised on everyone else would this not blow a hole in revenue and raise the deficit?

Eliminating tax expenditures (deductions/credits/exemptions) would enable the lowering of tax rates on everyone, not just the rich.

I don't know where you got the idea Jeb's plan raises deductions on the non-rich. It actually puts a cap on everyone's deductions.

I'm asking what this plan does to overall revenue. There is nothing I could find in the plan to address this.

Reducing/eliminating tax expenditures increases revenue.

If we eliminated all tax expenditures, revenues would increase $1.2 trillion a year. That's your baseline.

It is very clear that Jeb's plan reduces/eliminates tax expenditures quit a bit. Not totally, but substantially. Therefore, his plan increases revenues.

Increased revenues allow for lower tax rates.

So who ends up paying more then? Jeb makes no claims regarding overall revenue in this plan. It seems to me the last paragraph should rightly address this point as it is the point of taxation to begin with. Without the bottom line I can't believe this is serious. Perhaps in the coming days an independent analysis will be forthcoming that will answer this question definitively but my first gut feeling here is that it will have a negative impact on revenue and balloon the deficit.

 

[bendog]

Still a supply sider
Jeb Bush Falls Apart After Getting Trapped In A Tax Cuts For The Rich Lie

When we have abundant supply and insufficient demand. Run him outta town on a rail.