The Brady/Ryan Tax Reform Plan

[LoneLaugher]

Not enough smears or logical fallacies? Requires too much thinking? What?

What would you like? A theoretical argument? This is a summary of a plan which does not include revenue projections.

Actually, it does. Did you read the entire OP?

No. I stopped before the second link. mea culpa.

 

[g5000]

Enough with the monkeys running the zoo around here, and their shit slinging. Let's talk turkey.

Kevin Brady and Paul Ryan will be holding the fiscal reins going forward, and will thus be the real power in Washington.

Here is a summary of their tax reform plan: Forbes: Speaker Paul Ryan And Chairman Kevin Brady Produce A Tax Blueprint To Make America Great Again

• Increases the standard deduction from $6,300 to $12,000 for singles, from $12,600 to $24,000 for married couples filing jointly, and from $9,300 to $18,000 for heads of household.
• Eliminates the personal exemption and creates a $500 non-refundable credit for dependents who are not children.
• Increases the Child Tax Credit to $1,500 per child, limits the refundability of the credit to $1,000, and raises the phaseout threshold for the Child Tax Credit for married households from $110,000 to $150,000.
• Eliminates all itemized deductions besides the mortgage interest deduction and the charitable contribution deduction.
• Eliminates the individual alternative minimum tax.
• Reduces the corporate income tax rate from 35% to 20%.
• Eliminates the corporate alternative minimum tax.
• Taxes income derived from pass-through businesses at a maximum rate of 25%.
• Allows the cost of capital investment to be fully and immediately deductible.
• Eliminates the deductibility of net interest expenses on future loans.
• Restricts the deduction for net operating losses to 90% of net taxable income and allows net operating losses to be carried forward indefinitely, and increased by a factor reflecting inflation and the real return to capital. Does not allow net operating losses to be carried back.
• Eliminates the domestic production activities deduction (section 199) and all other business credits, except for the research and development credit.
• Creates a fully territorial tax system, exempting from U.S. tax 100% of dividends from foreign subsidiaries.
• Enacts a deemed repatriation of currently deferred foreign profits, at a tax rate of 8.75% for cash and cash-equivalent profits and 3.5% on other profits.
• Modifies all business income taxes to be border-adjustable, disallowing the deduction for purchases from nonresidents and exempting export profits and foreign-derived profits from taxation.

Here is their tax plan from their own pen: http://abetterway.speaker.gov/_assets/pdf/ABetterWay-Tax-PolicyPaper.pdf

Here is the analysis by the independent Tax Foundation: Details and Analysis of the 2016 House Republican Tax Reform Plan

• The House Republican tax reform plan would reform the individual income tax and would move towards destination-based cash flow taxation of businesses.
• According to the Tax Foundation’s Taxes and Growth Model, the plan would significantly reduce marginal tax rates and the cost of capital, which would lead to 9.1 percent higher GDP over the long term, 7.7 percent higher wages, and an additional 1.7 million full-time equivalent jobs.
• The plan would reduce federal revenue by $2.4 trillion over the first decade on a static basis. However, due to the larger economy and the broader tax base, the plan would reduce revenue by $191 billion over the first decade.
• Although the plan would reduce federal revenue by $2.4 trillion on a static basis in the first decade, much of the revenue loss is one-time. As a result, the plan will cost much less in subsequent decades.
• On a static basis, the plan would lead to 0.7 percent higher after-tax income for all taxpayers and 5.3 percent higher after-tax income for the top 1 percent. When accounting for the increased GDP, after-tax incomes of all taxpayers would increase by at least 8.4 percent.

At first glance it appears certain that their plan would leave even MORE American households paying no federal income tax.

You need some glasses. Glance again.

This plan WIDENS the tax base.

If you're a family of four on moderately low income and took $1000 tax credit per child and ended up paying $1000 in federal income tax,

Let's stop right there for a second.

The reason you are paying only $1000 in federal income tax is because of all the other deductions, exemptions and credits you are claiming.

raising that credit to 1500 amounts to another $1000 off your taxes, and all else being equal,

you're now down to zero. And that's without even considering the increased deductions/exemptions.

See what you did there? You showed your innumeracy.

This plan has LESS deductions and exemptions. All those ones which used to knock your tax bill down to $1000 are gone. Now you have one standard deduction, an MID, and that's it.

WIDER tax base.

 

[LoneLaugher]

The analysis of the Ryan/Brady tax plan states that this tax reform plan will still result in annual deficits.

It will not reduce our debt, and will in fact keep adding to it.

That's the price of deductions.

The one main cog inthat thinking is not assuming job growth and more tax payers paying in! More capital, more jobs, more tax payers and less welfare payments

He's a lib.. they haven't even the most basic understanding of basic economics.

I see you are still lying about me being a liberal, despite massive evidence to the contrary, such as this topic. Fascinating.

And I have more understanding about economics than all you tards put together. I've been schooling you for a long time.

Yeah. You are schooling us on the benefits of a "fair tax". Short lesson plan.

 

[g5000]

The analysis of the Ryan/Brady tax plan states that this tax reform plan will still result in annual deficits.

It will not reduce our debt, and will in fact keep adding to it.

That's the price of deductions.

The one main cog inthat thinking is not assuming job growth and more tax payers paying in! More capital, more jobs, more tax payers and less welfare payments

He's a lib.. they haven't even the most basic understanding of basic economics.

I see you are still lying about me being a liberal, despite massive evidence to the contrary, such as this topic. Fascinating.

And I have more understanding about economics than all you tards put together. I've been schooling you for a long time.

Yeah. You are schooling us on the benefits of a "fair tax". Short lesson plan.

I've been trying to train the pseudocons on tax expenditures for years. They don't recognize a basic conservative principle when it smacks them in the face.

Eliminating tax expenditures is core fiscal conservative doctrine.

That's what THIS topic is about, among the other reforms proposed by Brady and Ryan.

The Fair Tax, which I am always happy to discuss, is a separate topic.

 

[buckeye45_73]

The analysis of the Ryan/Brady tax plan states that this tax reform plan will still result in annual deficits.

It will not reduce our debt, and will in fact keep adding to it.

That's the price of deductions.

The one main cog inthat thinking is not assuming job growth and more tax payers paying in! More capital, more jobs, more tax payers and less welfare payments

He's a lib.. they haven't even the most basic understanding of basic economics.

I see you are still lying about me being a liberal, despite massive evidence to the contrary, such as this topic. Fascinating.

And I have more understanding about economics than all you tards put together. I've been schooling you for a long time.

Yeah. You are schooling us on the benefits of a "fair tax". Short lesson plan.

He posted the congrestional tax.plan, not the fair tax. I would be.jumping for joining it were a.fair tax, but this is the best one of the graduated income.tax plans out there

 

[buckeye45_73]

The analysis of the Ryan/Brady tax plan states that this tax reform plan will still result in annual deficits.

It will not reduce our debt, and will in fact keep adding to it.

That's the price of deductions.

The one main cog inthat thinking is not assuming job growth and more tax payers paying in! More capital, more jobs, more tax payers and less welfare payments

He's a lib.. they haven't even the most basic understanding of basic economics.

I see you are still lying about me being a liberal, despite massive evidence to the contrary, such as this topic. Fascinating.

And I have more understanding about economics than all you tards put together. I've been schooling you for a long time.

Yeah. You are schooling us on the benefits of a "fair tax". Short lesson plan.

I've been trying to train the pseudocons on tax expenditures for years. They don't recognize a basic conservative principle when it smacks them in the face.

Eliminating tax expenditures is core fiscal conservative doctrine.

That's what THIS topic is about, among the other reforms proposed by Brady and Ryan.

The Fair Tax, which I am always happy to discuss, is a separate topic.

I.completely agree and for the govt to try and contol is and our behavior through the tax code is fundamentally unamerican.

 

[LoneLaugher]

The analysis of the Ryan/Brady tax plan states that this tax reform plan will still result in annual deficits.

It will not reduce our debt, and will in fact keep adding to it.

That's the price of deductions.

The one main cog inthat thinking is not assuming job growth and more tax payers paying in! More capital, more jobs, more tax payers and less welfare payments

He's a lib.. they haven't even the most basic understanding of basic economics.

I see you are still lying about me being a liberal, despite massive evidence to the contrary, such as this topic. Fascinating.

And I have more understanding about economics than all you tards put together. I've been schooling you for a long time.

Yeah. You are schooling us on the benefits of a "fair tax". Short lesson plan.

He posted the congrestional tax.plan, not the fair tax. I would be.jumping for joining it were a.fair tax, but this is the best one of the graduated income.tax plans out there

Sure it is. It's the best one. It's an awesome plan.

 

[Coyote]

What is "fair" about Fair Tax? It disproportionately targets the middle and lower class people who have far less disposable income..

 

[NYcarbineer]

A Republican plan that appears based on the thoroughly discredited theory that lowering taxes will increase revenues and pay for themselves is what I would call

fool me thrice, shame on me again.

The theory has only been discredited by dishonest Marxists. It has, in fact, worked every time. Kennedy, Reagan, and Bush could attest to that.

So did raising taxes work every time?

LBJ, Clinton, and Obama have raised taxes,

followed by increased tax revenues.

Deal with that.

 

[ThunderKiss1965]

Creates a fully territorial tax system, exempting from U.S. tax 100% of dividends from foreign subsidiaries.

So does this mean that Americans who work in a foreign country no longer have to pay taxes to both? That's been a huge problem for expatriots and many have forfeited citizenship because of it. Most other nations don't require their workers here in the U.S. to also pay taxes to their home nation. We are one of the only ones that do.

I paid state and federal taxes while stationed in South Korea.

 

[g5000]

What is "fair" about Fair Tax? It disproportionately targets the middle and lower class people who have far less disposable income..

That's why it has a prebate.

 

[g5000]

I thought it was time to bump this topic because Trump is trying to get the ball rolling on tax reform now: Trump launches tax reform push as details still being worked out - CNNPolitics

If the only thing the Republican House and Senate and the apprentice White House manage to get done between now and the 2018 election is the Brady/Ryan tax reform, I will be over-the-top happy.

This, even more than health care reform, needs to get done.

 

[g5000]

I started a much more in-depth topic about the individual tax reform plan here: A Better Way: Tax Reform (Individual)

An excerpt:

The new larger standard deduction will be $24,000 for married individuals filing jointly, $18,000 for single individuals with a child in the household, and $12,000 for other individuals. These amounts will be adjusted annually for inflation.

In addition, the Blueprint will consolidate the child credit and personal exemptions for dependents into an increased child credit of $1,500. The first $1,000 will be refundable as under current law. A non-refundable credit of $500 also will be allowed for non-child dependents.

The marriage penalty that exists in the current-law phase-out of the child credit will be eliminated, so that married couples will be able to earn up to $150,000 before their child credits start phasing out.

 

[g5000]

The whole deduction thing is stupid. They just cause tax rates to be higher than they have to be, or else more borrowing by the government (deficits).

Stupid, stupid, stupid.

 

[jc456]

The whole deduction thing is stupid. They just cause tax rates to be higher than they have to be, or else more borrowing by the government (deficits).

Stupid, stupid, stupid.

more paperwork and the need to itemize and have paperwork and more paperwork. I completely agree. flat tax is my objective. everyone pays.

 

[g5000]

The whole deduction thing is stupid. They just cause tax rates to be higher than they have to be, or else more borrowing by the government (deficits).

Stupid, stupid, stupid.

more paperwork and the need to itemize and have paperwork and more paperwork. I completely agree. flat tax is my objective. everyone pays.

The accountant lobby wants our tax preparation process to be as complicated as possible.

 

[jc456]

The whole deduction thing is stupid. They just cause tax rates to be higher than they have to be, or else more borrowing by the government (deficits).

Stupid, stupid, stupid.

more paperwork and the need to itemize and have paperwork and more paperwork. I completely agree. flat tax is my objective. everyone pays.

The accountant lobby wants our tax preparation process to be as complicated as possible.

 

[Aldo Raine]

Flat tax is far and away the fairest way to go. That's why it will never fly!

 

[g5000]

Flat tax is far and away the fairest way to go. That's why it will never fly!

A flat tax is regressive. So it is not fair, and that is why it will never fly.

 

[Brain357]

I thought it was time to bump this topic because Trump is trying to get the ball rolling on tax reform now: Trump launches tax reform push as details still being worked out - CNNPolitics

If the only thing the Republican House and Senate and the apprentice White House manage to get done between now and the 2018 election is the Brady/Ryan tax reform, I will be over-the-top happy.

This, even more than health care reform, needs to get done.

Think trump will be pushing this Brady/ryan plan or another?