DawgTalkers.net Forums DawgTalk Palus Politicus President Trumps and the GOP Tax Plan...

and in the middle class I get to double my deduction, which is wonderful! you see, as a voter and tax payer, I don't care about your deductions, your paycheck, some CEO paycheck or any other of that garbage. Im going to vote for whatever gives me more of my money back in my wallet.

Ill take care of me, you take care of you.

They still will have to work on the details but a review of what they know was on CNN. I was listening to NPR this morning and they had somebody from the White House (I cant remember his name but I thought his last name was Wright) and he said that this will be good for working families but when asked about if there are not some additional tax generators to offset the reduced business tax, all he said was that more people will be working-which will add more tax revenue. I don't think that the math will work on that but we will see.



From CNN

Drastically lower rates for businesses. Fewer income tax rates for individuals. A much larger standard deduction and child tax credit. A repeal of the estate tax.

CNN obtained a copy Wednesday of a Republican framework for tax reform that has been in the works for months and will finally be presented Wednesday.



The blueprint, which President Trump will discuss in a speech Wednesday, omits many critical details and numbers that congressional tax writers will now have to decide on as they draft legislation.





It's not clear yet, however, just how closely the tax-writing committees will hew to that framework since it's been negotiated behind closed doors by just six key players from the White House, House and Senate. And even that small group -- known as the Big Six -- took a long time to reach broad agreement.


How individual taxes would change





Reduce individual income tax rates: The framework shrinks the number of tax rates to just three from seven today. The proposed rates are 12%, 25% and 35%. But it will be up to the tax committees to assign income ranges to each rate.

Also, the drop in the top rate to 35% from 39.6% may not stick. The framework gives tax legislators the "flexibility" to add a fourth rate above 35% to ensure reform keeps the tax code at least as progressive as the current system.

If 35% remains the top rate, Democrats will charge that reform is just giving a big tax cut to the wealthy.

And even though the administration says it wants reform to offer middle class tax relief, the framework calls for a 12% bottom rate, which is actually higher than today's lowest rate of 10%. But typical families in the 10% bracket today "are expected to be better off" when all the changes under reform are considered together, the blueprint says.

Increase standard deduction: The plan doubles the standard deduction, to $24,000 for married couples and $12,000 for single filers.

Doing so would drastically reduce the number of people who opt to itemize their deductions, since the only reason to itemize is if your individual deductions combined exceed the standard.

Increase child tax credit: The framework calls for a "substantially higher" child tax credit, which today is worth $1,000 per child under 17. It will be up to lawmakers to determine how much higher to make it. In addition, it would raise the income thresholds for eligibility for the credit, meaning more people would qualify for it.

Get rid of valuable tax breaks: The framework proposes the elimination of most itemized deductions, including the state and local tax deduction.

It also eliminates personal exemptions, worth $4,050 per person. So a family of four could no longer reduce their taxable income by more than $16,000.

Preserve some deductions: Again without specifics, the framework calls for lawmakers to retain tax incentives for home ownership, retirement savings, charitable giving and higher education. But that doesn't mean lawmakers won't seek to modify the tax breaks that currently exist in these areas.

Repeal the Alternative Minimum Tax: The AMT most typically hits filers making between $200,000 and $1 million.

It was originally intended to ensure the wealthy pay at least some tax.

Kill the estate tax: What Republicans refer to as the "death tax" only affects about 0.2% of all estates -- and only those worth more than $5.5 million.


How business taxes would change


Cut corporate tax rate to 20%: Such a drastic drop from today's 35% rate would put the U.S. rate below the 22.5% average in the industrialized world. But doing so will be expensive. It's estimated to cost roughly $1.5 trillion over a decade.

Drop tax rates on small businesses and other pass-throughs: The top rate would be 25% down from 39.6% on the profits of so-called pass-through businesses. A pass-through passes its profits through to partners and shareholders, who then report them on their individual returns.

The framework will recommend the committees include measures to prevent gaming, in which people try to recharacterize their wages as pass-through profits to get the lower rate.

Change how U.S. multinationals are taxed: Today, U.S. multinational firms pay a 35% tax on overseas profits when they bring them back to U.S. shores. The framework calls for a switch to a "territorial system," where the overseas profits of U.S. companies would no longer be subject to U.S. tax, just to the tax of the government where the money was made.

The hope is that the new system will make U.S. companies more competitive with their foreign counterparts, and that they will use more of their foreign profits to invest and create jobs in the United States.

But to dissuade U.S. companies from artificially shifting their profits to low-tax (or no tax) havens, the framework also would impose a minimum foreign tax, though the rate is unspecifiied.

In addition, it would offer a low, one-time tax rate on existing overseas profits to entice companies to bring that money back too. It's not yet clear if the tax would have to be paid even if the money isn't brought back.

Read the full GOP tax proposal here

https://www.cnbc.com/2017/09/27/read-the-full-gop-tax-proposal-here.html

Tax brackets are to be 12%, 25% and 35%

The plan, as outlined in the framework, nearly doubles the standard deduction to $12,000 for individuals and $24,000 for families.

25% Pass thru rate, whatever that is???

Corporate Tax Rate will be 20%

By simplifying the system, most Americans would be able to file their taxes on a postcard, the plan says

Deductions for mortgage interest and charitable giving would remain, but the plan seeks to end most other itemized deductions that can reduce how much affluent families pay.

The pass thru rate is for people with LLCs or S-Corps.

25% is Ok. Better than now. I wanted 15% lol

But a battle is already brewing among Republicans over a move to eliminate the deduction for state and local taxes, which is especially valuable to people in high-tax states such as New York, New Jersey and California. The plan retains existing tax benefits for college and retirement savings such as 401(k) contribution plans.

New benefits would be given to firms in which the profits double as the owners' personal income. They would pay at a 25 percent rate, down from 39.6 percent. This creates a possible loophole for rich investors, lawyers, doctors and others, but administration officials say they will design measures to prevent any abuses.

The plan would also impose a new, one-tax, lower tax on corporate profits stashed overseas, and create a new tax structure for overseas business operations of U.S. companies.

OK question. Lets say some poor ignorant Ohio person is married and makes oh lets say 50,000 per year between him and his wife. He also collects 25,000 per year in disability. His local, state,and property taxes are $5800 per year. Is he/she getting a tax brake, or getting screwed in the back side?

My question is....

Currently self employed people have to pay an extra tax to cover fica/ss/etc. Its a sizeable chunk.

So does the 25% cover that or not?

I don't have anything more than what I gave you guys.

Breaking story.

looks good to me, lowers my AGI, increased my tax credit for my kid. whats not to like

I didn't figure you did bro. It's not your fault, it is the fault of all of our politicians for voting on and passing crap that they have no clue about while treating all of us like mushrooms. Keeping us in the dark and feeding us crap.

That is a great question Eve. I hate paying into that as I know I'll never see the SS portion of it, I'd rather put that money into my own SEP retirement account. A great provision they could add would be an opt out for small business owners as long as the money went into their retirement account. Will likely never happen, need to keep the SS pyramid scheme in place.

I too was hoping for 15%, but 25% would still be reason for celebration!

edit
In fact, I'd love it if they added a provision for everyone to be able to invest the SS money themselves and not be able to touch it until a certain age without penalty. Again, never happen.

12% for what $25K-50K? $25K-100K? Why not list what the income ranges are?

Pass-through business income is taxed on the business owners’ tax returns through the individual income tax code.

Pass-through business income faces marginal tax rates that exceed 50 percent in some U.S. states.

Pass-through businesses face only one layer of tax on their profits compared to the double taxation faced by C corporations.

Cryin Chuck already complaining about this, yet most of the stuff he is saying has not officially been released. playing games before the board is laid out and the pieces are ready to roll.

He probably knows more about it then what they're releasing to the public.

you give politicians too much credit. he is simply towing the "oppose anything trump does" line.

ANY TAX BILL is not going to benefit everyone, that's just a fact.

from what I can see, this tax form bill will benefit my family, BIGLY. And I am not no where near rich my man. so his false narrative doesn't fly with me. And according to every demographic statistic out there, I am right dab in the "middle class plain ol joe working American." so if its benefiting me, its gonna benefit ALOT of PEOPLE. And I am not no where near rich my man. so his false narrative doesn't fly with me.

Me thinks chuckie is scared, cause he knows the economy is doing great, jobs are being added, 401K are up, stock market has been steadily on fire, and trump starts putting more money in peoples pockets come feb/march when its time to buy cars, rims, gold, bling, $1000 boa constrictor to play with little Cletus, 20 cases of bud, and a new foil roof for the mobile - them votes for 18 might even more one sided then they already were going to be.....

Trump coming on TV now to talk Tax Plan!!!

Dang, where's my Trump hat?

are yall watching this?

is there something wrong with the camera? why is it so green?

omg twitter is about to have a field day with the green screen stuff lmfao

Not a definate answer, but I advise you to purchase lube.

Seriously doubt it.

military grade.

Gotta work to pay the man, keeping America great!

You don't even know what tax bracket you'll be in yet unless you make less than $25K yearly. How wonderful is that?

You and OCD cried and cried about Orange, we provide Green and you cry and cry!

who's crying about it? nobody.

Well, there are three tax brackets, I am in the middle class, so deductive reasoning suggest ill be at the 25% rate.

WONDERFUL IS IT NOT! Try squinting for any big words.

Heres my guess at the brackets for filing jointly:
12% < 100k
25% > 100K < 250K
35% >250K

more likely:
12% < 60k
25% > 60K < 200K
35% >200K to 1 million, 39% over that.

There is almost zero doubt in my mind that this will end up being another lie about helping the working man while robbing them to give the rich bigger breaks, period. DOA like Trump's other great plans I bet.

There is no 39, is there? Thought there were just 3. I think those numbers may be close for individual. Guess we'll see soon hopefully.

With my business, looks like it'll be 25 which I am absolutely thrilled about.

They left the possibility of a 4th bracket open.

Not my first rodeo. I have a 55 gallon drum standing by.

A Chicken for Every Pot!!!

Love this guy Trump!

The trolling never ends...

It looks like the chicken he wants to put in my pot will be spoiled and filled with Salmonella, and maggots.

24,000 standard deduction, and doing away with some of my deductions I take when I itemize. It will raise my taxes. Reaching for my 55 gallon drum of lube.

If these are tax cuts,,, can anyone tell me how we pay for this?

I mean, they (Trump) says the Growth of the GDP will pick up the slack. But isn't that kinda betting on the "If Come" and when was the last time that worked out?

They've had 9 months to work on this.. Longer if you believe what Trump was saying during the campaign.. and what do we get,,,, Nice stuff with no back up, no detail, no tables..

I smell Farce.

This morning, NPR had a Brookings Institute Fellow who writes for the Wall Street Journal on, and he pretty much said that the bill has very little substance at this point and virtually no way to pay for it other than mention that more people will work and they will generate more taxes and the math don't add up.
And if they don't find more revenue, the deficit will blow up; and if they go back to congress to try to get more offsets to the deductions, that K street already has their lobbyists and lawyers working. He said that the rich want their reduced rates and their deductions and that simply cant happen-without a lot of pain elsewhere

"that more people will work and they will generate more taxes"

-That is a plus one!
-Predicted 3% economic growth or better is a plus two!
-Corps paying less taxes to pass on to us in higher prices, Plus three!
-First $24,000 in income is tax free, Plus four!

That would raise my taxes substantially if true.