Other View: Tax reform for cowards

President Trump is unveiling the GOP tax plan Wednesday

"It doesn't hurt the middle class", said McMahon.

The plan's precise effects on Mr Trump can not be calculated since he refuses to release his tax returns. He chose the Suffolk county hamlet of Ronkonkoma to use as an example, where the average family income is $137,000.

Our bloated, 75,000 page tax code is costly and confusing.

Even some fiscal conservatives in NY noted that the while some of the tax changes would help the middle class, such as cuts in federal rates and a near doubling of the standard deduction, the net outcome could be a negative for New Yorkers - both for the middle class and some of the rich, especially compared to states with lower taxes. The last major overhaul in 1986 was bipartisan, and Trump was courting Democrats. Think about how much our society and economy have changed in the past 30 years. It's not really about simplifying the tax code, but only about reducing the progressivity of the tax system.

For individuals, the plan reduces the number of tax brackets from seven rates into three: 12 per cent, 25 per cent and 35 per cent. The standard deduction would almost double to $12,000 for individuals and $24,000 for families, basically increasing the amount of personal income that would not be taxed. The standard deduction for those who are married filing jointly would jump to $24,000 from $12,600.

Allowing hardworking Americans to keep more of their money is just the start. According to the draft released Friday, the Senate Finance Committee and House Ways and Means Committee will have until November 13 to draft tax bills that cost no more than $1.5 trillion in lost revenue.

Fresh off a blistering loss over health care, many lawmakers are cautiously optimistic their party can be more successful in overhauling the US tax code, a system they say is seriously lacking in popularity and in dire need of change.

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"A large percentage of middle-class families would pay more taxes". This is the lowest rate since the 1930s! "This can be done through incentivizing the manufacturing sector and small business growth, as well as lowering rates on businesses and investments". Vermont Sen. Bernie Sanders, the runner-up for the 2016 Democratic presidential nomination, called the Trump tax plan "morally repugnant" for "providing hundreds of billions in tax breaks to the wealthiest people".

Residents of high-tax states.

We can't continue with an outdated tax code that now benefits the well-connected but doesn't support hardworking Americans, kills jobs, and makes companies want to move overseas. "With your help and your voice, we will bring back our jobs, we will bring back our wealth, and for every citizen across this land, we will bring back our great American dream".

Now, under existing law, these entities wouldn't pay business taxes and instead they would be taxed according to the individual income of their owner - up to a maximum rate of about 40%. This will help level the playing field for companies to stay and grow in American communities, creating good paying American jobs, and keeping tax revenues here in America.

Itemized deductions are eliminated except for all the ones that matter: mortgage interest, charitable giving, the EITC, retirement accounts, and education accounts.

Second, the plan would eliminate the alternative minimum tax, which prevents wealthy people from ducking their tax bills. There are likely to be some changes - new additions, deleted proposals, and tweaked policies.

Various provisions in the framework "would cut taxes more for the top than other taxpayers", said Kyle Pomerleau, director of federal projects at the Tax Foundation, a Washington policy group. At the very least, Donovan told me, they're happy to be talking about something that's not health care.



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