Trump's Tax Plan

[Zander]

We need to whittle down the complexity of our ridiculous tax code and this is a step in that direction.

 

[g5000]

Trump Plan Cuts Taxes for Millions

Under the Trump plan, no federal income tax would be levied against individuals earning less than $25,000 and married couples earning less than $50,000. The Trump campaign estimates that would reduce taxes to zero for 31 million households that currently pay at least some income tax. The highest individual income-tax rate would be 25%, compared with the current 39.6% rate.

To pay for the proposed tax benefits, the Trump plan would eliminate or reduce deductions and loopholes to high-income taxpayers, and would curb some deductions and other breaks for middle-class taxpayers by capping the level of individual deductions, a politically dicey proposition.

I hate it when specifics are not given. What deductions and "loopholes" would be eliminated? This is the most important thing to know about any tax plan in order to determine the total effect on taxpayers and revenues.

Mr. Trump also would end the “carried interest” tax break, which allows many investment-fund managers to pay lower taxes on much of their compensation.

Eliminating the carried interest tax break will probably only bring in an extra two billion dollars a year.

A significant revenue gain would come from a one-time tax on overseas profits that could encourage U.S. multinational corporations to return an estimated $2.1 trillion in cash now sitting offshore, largely to avoid U.S. taxes. His proposal would impose a mandatory 10% tax on all of that money

A one-time gain.

Mr. Trump also would impose an immediate tax on overseas earnings of American corporations; currently, such tax payments can be deferred.

All told, the campaign says the plan would be revenue neutral—neither raising nor lowering federal revenues—by the third year and then begin adding revenue.

On the individual side, Mr. Trump would consolidate the current seven rates to four, of 0%, 10%, 20% and 25%. Those changes alone would exempt all married couples making $50,000 or less from the income tax, as well as singles making $25,000 or less.

The 10% bracket would apply to incomes from $50,000 to $100,000 for a married couple; the current 10% bracket has a ceiling of $18,450. The new 25% top bracket would apply to married couples’ incomes in excess of $300,000, which currently are subject to rates as high as 39.6%. Mr. Trump also would cut the top capital gains rate to 20%, from the current 23.8%. And he would eliminate the alternative minimum tax.

Discuss.

This is going to cost big.

How does he plan to pay for it?

This is why I said in the OP that I hate it when specifics are not given as to which tax expenditures would be eliminated.

Your statement that Trump's plan is "going to cost big" is a bogus assumption.

If we did not change spending or the current tax rates, and all tax expenditures were closed, we would have an $800 billion surplus.

Clearly, Trump is not going to close all of them, but it is a move in the right direction.

 

[g5000]

Trump promised that all of this could happen without increasing the national debt because he expects the economy to improve.

No candidate ever assumes anything but a rosy economy if they are in charge.

 

[SwimExpert]

As always, the call for lower tax rates to boost tax revenues rarely works.

Trump's plan isn't to increase revenues through lower rates. His plan is to lower rates by eliminating deductions and loopholes thus resulting in higher revenues per bracket. The "lower rate" is a superficial smoke screen. Sure, the rate itself is lower. But the total tax liability will be equal to or greater than what you previously owed, due to the elimination of deductions and loopholes. The only people who really come out of this with lowered taxes are low income people, and lower middle class people. The higher your income, the more likely you are to encounter higher total taxes.

We both know that it never works like that. And the offset would at best be a push. More likely than not, taking away a few deductions would result in a small gain, not nearly enough to cover the loss in revenue due to the lower rates.

You're missing the point. I am not endorsing Trump's plan. I am pointing out that his claim to "lower" taxes is bullshit. He has no interest in lowering taxes. The goal of his plan is to raise taxes in disguise.

 

[Mike473]

I think we need more information here. But, I like what I see so far.

On the trade side of things, I would love for NAFTA to be ended and the new Pacific deal to go away as well.

 

[Eaglewings]

He wants tax cuts for the middle class , he said all of this last night on 60 minutes.

OMG, you mean if a politician says something it must be true!?! When did that happen?!?

Ummmmm where did I say anywhere that I believed him? You said that there is nothing for the middle class so I corrected you with what he said, which next time I will just let you walk around with your made up information.

 

[SwimExpert]

Ummmmm where did I say anywhere that I believed him?

Right here:

You said that there is nothing for the middle class so I corrected you with what he said, which next time I will just let you walk around with your made up information.

You really are a stupid twat.

 

[auditor0007]

As always, the call for lower tax rates to boost tax revenues rarely works.

Trump's plan isn't to increase revenues through lower rates. His plan is to lower rates by eliminating deductions and loopholes thus resulting in higher revenues per bracket. The "lower rate" is a superficial smoke screen. Sure, the rate itself is lower. But the total tax liability will be equal to or greater than what you previously owed, due to the elimination of deductions and loopholes. The only people who really come out of this with lowered taxes are low income people, and lower middle class people. The higher your income, the more likely you are to encounter higher total taxes.

We both know that it never works like that. And the offset would at best be a push. More likely than not, taking away a few deductions would result in a small gain, not nearly enough to cover the loss in revenue due to the lower rates.

You're missing the point. I am not endorsing Trump's plan. I am pointing out that his claim to "lower" taxes is bullshit. He has no interest in lowering taxes. The goal of his plan is to raise taxes in disguise.

If there was a way to raise taxes a little, I would be all for it. When you look at federal outlays, other than actually cutting Medicare or SS payments, there isn't a lot of room to cut spending. Discretionary spending only accounts for around 30% of all expenditures, and that includes military spending. Good luck finding something to cut.

 

[SwimExpert]

When you look at federal outlays, other than actually cutting Medicare or SS payments, there isn't a lot of room to cut spending. Discretionary spending only accounts for around 30% of all expenditures, and that includes military spending. Good luck finding something to cut.

I'd be happy to cut Medicare and SS.

 

[auditor0007]

When you look at federal outlays, other than actually cutting Medicare or SS payments, there isn't a lot of room to cut spending. Discretionary spending only accounts for around 30% of all expenditures, and that includes military spending. Good luck finding something to cut.

I'd be happy to cut Medicare and SS.

I could see gradually raising the retirement age on Medicare to 67 and SS to 69 or 70, but direct cuts would be devastating to those who count on it and to our economy.

 

[ScienceRocks]

Raise taxes on the top 10%
Close loop holes
Cut them for the middle class
Strengthen anti-trust laws
tax cuts for all new businesses

 

[ScienceRocks]

When you look at federal outlays, other than actually cutting Medicare or SS payments, there isn't a lot of room to cut spending. Discretionary spending only accounts for around 30% of all expenditures, and that includes military spending. Good luck finding something to cut.

I'd be happy to cut Medicare and SS.

Yep,lets throw granny that worked for 40 years onto the cold street. Dumb.

 

[SwimExpert]

I could see gradually raising the retirement age on Medicare to 67 and SS to 69 or 70, but direct cuts would be devastating to those who....

...were irresponsible and expected to suck the government teat at the future's expense? Fuck them, let them die. I'd like to have enough money left over in my paycheck to save for my own retirement. Ya know....the one that will happen after Social Security has long gone bankrupt.

 

[SwimExpert]

Yep,lets throw granny that worked for 40 years onto the cold street. Dumb.

Yes. And I hope it's extremely cold and that she dies quickly. That way, the cold will keep her from smelling up the place before she's found.

She's not my granny. Why should I pay for her Social Security and her own irresponsibility, and have nothing for my own retirement when I am old?

 

[Avorysuds]

Raise taxes on the top 10%
Close loop holes
Cut them for the middle class
Strengthen anti-trust laws
tax cuts for all new businesses

incoherent.

 

[SAYIT]

Not sure how he will tax free trade

He was talking about old school protectionism. Tariffs on countries he doesn't like.

It would result in retaliatory tariffs on American exports.

Because the US has such high exports? Or because other countries don't tax American exports already?

If we raise tariffs on Chinese goods, the Chinese will retaliate by raising tariffs on American goods imported into their country.

The next thing you know, the CEO of General Motors will kick Donald Trump in the balls.

GM doesn't export to China. By agreement with the gov't, their cars are built in China.

Our trade deficit with China is over $300bil/yr. A tit-4-tat tariff war is one China can't win.

 

[auditor0007]

I could see gradually raising the retirement age on Medicare to 67 and SS to 69 or 70, but direct cuts would be devastating to those who....

...were irresponsible and expected to suck the government teat at the future's expense? Fuck them, let them die. I'd like to have enough money left over in my paycheck to save for my own retirement. Ya know....the one that will happen after Social Security has long gone bankrupt.

Those people paid into SS and Medicare their entire lives to pay for other's benefits. Now it is their turn. We can blame anyone for allowing our representatives to steal SS funds for nearly 40 years, but now we have to deal with it.

 

[Ravi]

If Trump were elected, which ain't going to happen, he would be completely ignored by congress, and would not be able to get change for a quarter from them, much less a tax revision bill..

I was gonna say. The Republican butthurt would mean no working with Trump period.

 

[Ravi]

I could see gradually raising the retirement age on Medicare to 67 and SS to 69 or 70, but direct cuts would be devastating to those who....

...were irresponsible and expected to suck the government teat at the future's expense? Fuck them, let them die. I'd like to have enough money left over in my paycheck to save for my own retirement. Ya know....the one that will happen after Social Security has long gone bankrupt.

Is that Trump's platform?

 

[g5000]

GM doesn't export to China.

GM inks $900M deal to export vehicles, parts to China

As a result of recent talks between President Obama and Chinese President Hu, General Motors and its China-based joint venuter, Shanghai General Motors, have signed a two-year agreement to export $900 worth of GM goods to China.

The deal will see the exportation of $500 million worth of Buick, Cadillac and Chevrolet vehicles, as well as another $400 million worth of vehicle components.

What's more, GM exports from China to the US. So they would be screwed in both directions.

Our trade deficit with China is over $300bil/yr. A tit-4-tat tariff war is one China can't win.

Everyone loses in a tariff war. Do you think it will matter to a voting American laborer who lost his job to high Chinese tariffs that the US is "winning" the tariff war?