T-3: Trump's Tax Tribute — Who Will Benefit and Gain the Most from this “Plan”

This "Plan" Like ACA (Obama-care) "Repeal Plan" is Disgusting

(But moving quickly in Congress)

Praise the Lord  

(Now I can afford my own jet and not use Uncle Sam's)

Yippee, oh, for whom (well take a guess) 

(refer to the chart below)

This is an update of an earlier post with new information from Axios here in part:

The Republicans on the House Ways and Means Committee is engaged in a high-pressure, high-stakes tax policy rewrite.

·        They are currently exploring not cutting the income tax rate for people who earn $1 million or more per year.

·        The marginal tax rate for anyone who makes $418,000 or more per year currently is 39.6 percent.

·        Republican opening gambit which has been secretly negotiated for months, and endorsed by Trump would have cut the highest tax rate to 35 percent.

·        Now Republican thinking has changed by this new thinking, people who earn between $418,000 and $999,999 will be in a lower tax bracket. But those earning $1 million or more will not.

·        Opting to keep taxing million-dollar-earners at the current 39.6 percent-rate will help stem the deficit increase from tax cuts for corporations and the middle class.

·        The million dollar bracket plans haven't been finalized and could change.

If the Committee Republicans ultimately decide not to cut the income tax rate for million-dollar-earners, much of the Republican donor class and Reaganomics community (including anti-tax activist Grover Norquist) will feel betrayed.

I note: Of course the top bracket, million-dollar earners want “their share of a tax cut.” Hey, we trickle down and create jobs – ergo, I guess: “If you don’t give us a tax cut, we won’t create jobs and trickle down.

Okay, fine … say content with the million dollar personal income, but leave alone those who have 2-3 jobs (low-wage jobs at that) striving to better themselves … give them a huge tax break. After all, they are the ones who work and serve you don’t they? 

How about just give everyone a million dollar annual income and import workers – wait, you do that already – never mind.

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The original post follows from here:

This post is called “T-3: Trump Tax Tribute.”  I call T-3 because that is precisely what it is. A gift to like-minded Trump rich pals - his BFF  tribute, while the rest of us it's a tribulation (you might outta compare those two words). Cite:

The main story comes from The AP – my emphasis on this “plan” comes from that piece. I call it: “The good, the bad, and the ugly” (not original, I know, but catchy nevertheless).

Sadly, it is mostly or solely designed and modeled by and strictly for “Trump Empire, Inc.” more in layman’s terms.

Highlights:

·        It nearly doubles the standard deduction to $12,000 for individuals and $24,000 for families (i.e., not taxed from income).

·        Reduces total number of personal tax brackets from the current 7 to just 3 – GOP claims as years ago: Most Americans will be able to file their taxes on a postcard.

·        Individual tax rates would be 12, 25, and 35 percent.

It recommends (Note: does not mandate): A surcharge for the very wealthy but, it does not set the income levels at which the rates would apply either. Thus, it's not clear how much of a tax cut would go to a typical rich family.

·        It helps families by increasing the child tax credit and opening it to families with higher incomes (Note: why they can’t afford a nanny). Currently that credit is $1,000 per child.

·        It would limit the “marriage penalty” on the joint income of couples who both work.

·        It proposes a new tax credit of $500 to help pay for the care of the elderly and the sick who are claimed as dependents by the taxpayer.

·        It keeps deductions for mortgage interest and charitable giving in place, but the plan seeks to end most itemized deductions that can reduce how much affluent families pay.

·        It retains existing tax benefits for college and retirement savings such as 401k contribution plans.

I call this last part, the boxed off part for we the 98% of public, the “Trump de Grâce.” 

Rather than cutting taxes equally across the board that would make sense and serve us all, he whacks off our heads. Tough words I know, but a crappy plan,

1.  The estate tax — which is levied on millionaires — would be eliminated, a likely boon for wealthy individuals who inherit businesses, investments and real estate.

IMPACT OF ESTATE TAX ELIMINATION SEEN HERE - nice neat gift, um?

2.  Companies would find themselves paying substantially lower tax rates, part of an effort to make U.S. businesses more competitive globally.

3.  Corporations would see their top tax rate cut from 35 percent to 20 percent.

4.  For a period of five years, companies could further reduce how much they pay by immediately writing off their investments.

5.  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 39.6 percent.

Note: All that creates a possible loophole for rich investors, lawyers, doctors, and others, but Trump administration officials say they will design measures to prevent any abuses.

Another guffaw now authorized if you believe that, coupled with this with them also saying the tax plan is focused on helping middle class families.

The kicker: Despite six months of talks with congressional leaders — the outline above still lacks vital details about how middle class families would fare.  

There are signs, however, (and no surprise here) that the wealthiest sliver of Americans could still reap tremendous benefits from the proposed changes, even though Trump has suggested that rich will not be better off.

I note: Trump is a serial lying con-artist, so what else would we expect him to do?

Yep that’s right: He will do the exact opposite of what he says. Then he turns right around and says he didn’t say what the heard him say.

How ironic is that? Wait and see. This T-3 plan is in short no plan at all except for greater wealth for the top 1% plus a few more at the top who are already ultra-wealthy.

Thanks for stopping by.