Why should I or any other middle class person in this country pay the same tax rate or a higher tax rate than a billionaire?? It is ludicrous that the Republican party is proposing tax increases on regular people so the uber rich can be richer. I'm happy to pay more in taxes for roads or schools or hospitals or cleaner water and air and parks, I'm not happy to pay more in taxes so Trump or Mnuchin or Walton can squirrel away another billion for their trust fund loser kids.
26
Republican hypocrisy: immigration laws can't be passed unless the border is secured. The debt ceiling can't be raised unless government spending is under control. Cutting taxes, however, is always good -- no conditions required. How to pay for it? That can be postponed indefinitely, or until people are unable to associate cause and effect.
7
Semi retired, work part time, on Social Security and small pension, definition of middle class. And if I do the math the elimination of real estate tax deduction will increase my income tax, notwithstanding the increase in standard deduction. ALL these pols, Reps and a Dems are crooks!
6
The GOP has screamed bloody murder about the desperate need for tax cuts for years now. It is practically God's spoken desire, in their mind. Yet when I called my GOP senator (Pat Toomey), I was told that, yes, there will be a corporate tax rate cut, for sure. But, "the details are not there yet on the middle class impact". Translation: taxes on the middle class are going up. The in-your-face hypocrisy of the GOP is truly a new force of nature that transcends the traditional norms of human behavior.
10
"Republicans Won’t Rule Out Tax Hikes for Some in the Middle Class"?
All they know for sure is that taxes on the richest will fall... which is ALL they care about.
The blatentness of this ongoing assault on the middle-class, working-class, and poor in the interests serving the rich is truly jaw-dropping!
5
Apparently they have to pass the bill for us to find out what's in it. But it will be terrific!
6
As the President said a few days ago, this is going to be the best tax plan ever, everyone will love it. He said the same thing about replacing National Healthcare during the election campaign. Well, we all know what happened there and how he changed his tune when push came to shove...
6
Yep-Trump was correct. I'm already tired of winning.
8
As our neighbors on the Gulf of Mexico might say,
Don't mess with taxes.
4
.....But tax cuts for the rich are guaranteed.
5
So the Republicans only cut taxes for the upper class and the rest of us in fly- over country are stuck with the bill again. Thanks
5
But we can be sure that they're making guarantees to their multimillionaire fatcat buddies.
7
When are you Republicans voters going to wake up? Unless you are in the untouchable 1%, you have and will continue to pay for this charade of a government whose actual job is to protect the citizens of this country. Now, they will take your money, just as they have taken your ethical compass. Seriously, they already lied about this tax cut until the news and analysts called them out.
They are counting on you to remain ignorant to their flim-flam. Wake up!
7
Although final conclusion are uncertain it seems very likely that bilionaires will save billions by elimination of the estate tax and that the very wealthy will have huge savings by eliminating the highest tax bracket and AMT, especially in red states. What is speculative is that reducing corporate taxes will increase jobs and wages. If Republicans pull this off they all deserve medals for deceit and we all deserve dunce caps for believing it.
3
The Republicans are extremists and liars. This article is full of quotes from the liar Paul Ryan and the liar Steve Mnuchin who try to fudge their tax increase on ordinary people. The drumbeat of exposition of Republican lies to sunlight followed by failure to pass legislation is the great hope for us ordinary people once again.
2
They won't?
My, my, my. They're not even bothering to hide that they're sticking it to the middle class any more.
Who gets it now that the Republican Party, Establishment and "Populist," never was about representing the interests of the middle class, much less the working class, no matter how often they scapegoated immigrants, African-Americans or the "liberal elite" to get votes?
Who gets it now that the religious fundamentalists just wanted to use the Republican Party to impose their "moral" agenda on the country? That the "greed is good" crowd just want to use the Republican Party to enrich themselves and prevent the government from stopping them from doing so at the people's expense? That the racists just want to use the Republican Party to widen the racial divide and promote white supremacy? That the fossil fuel industry just wanted to use the Republican Party to deny climate change, no matter that it is real and destructive, so they could keep their obscene profits going indefinitely? That the gun lobby, to increase its profit, just wanted to use the Republican Party to ensure an unlimited flow of guns and arms to Americans and around the world?
Who gets it now that this populism gig is nothing but a sham? A con to get the American people to go along with the trashing of our Constititional, democratic republic and giving up their power along with it?
5
Once again, those who vote conservative & Republicans empower a breed of tribes who have no conscience. There is nothing that can be done to bring them to the table to find common ground with the Democratic members of Congress & many of the red state legislatures. The baggage of conservatism cares nought for millions of hard-working Americans. Those who call themselves Evangelical Protestants along with conservative Jews & Catholics vote to economically disembowel the American middle class by continually supporting a Republican party that is anti-middle class. All of the decades of conservative slogans such as "law & order, prolife, American values" ring hollow. What we have now is a Republican party that embraces economic fascism, flirts with Naziism, white supremacists & domestic terrorism. GOP members of Congress are kept on political life support by the cancerous NRA, the Kochs, Mercers, Adelson, & other malevolent billionaire miscreants.
It wouldn't be so tragic if it were only a tragedy, like Sophocles' Oedipus Rex. Unfortunately, the rest of us Americans face existential threats to our very survival.
For those Bernie supporters who voted for Trump and the GOP, you aren't immune. "I've got mine" may have been the meme for the Reagan-Bush-Bush conservatives -- but you and your families will not escape the coming maelstrom. You had best hope that enough of you will vote Democratic, not only in 2018, but in 2020 & beyond. Some of the damage is already irreparable.
2
More flim flam.....
2
The blue states need to secede. I, for one, am sick and tired of paying taxes that never help my state but rather help all of those red states that hate us with such a passion. Enough already! This tax plan is designed to give the shaft to blue state workers to benefit red states and Wall Street plutocrats. We need to secede and take our money with us.
2
They want to protect the middle class, lol.
Tell me another.
2
If you're going to lie, why not lie big - something like...
"If you like your money, you can keep your money"
...Thanks, Steve - I feel so much better now
As far as...
"...More than a third of the taxpayers who earn $150,000 to $300,000 could see their taxes go up next year, the Tax Policy Center report stated...
Mr President - you gotta be kidding us...
3
Every multimillionaire and billionaire? Yes. Tax cut. Yuuuge. Yuuugest ever. Middle class families? Not so much. To hear Paul Ryan say that how is he supposed to know every little thing about (the little) people’s taxes, is to know what this tax cut is all about.
3
Republicans go all bankrobber Willy Sutton on tax cuts. The cuts go to the rich and big corps because that's where the money is.
Keven Brady: “I guarantee we are going to improve the lives of every American by driving down taxes and increasing paychecks."
Can I get double my money back on that guarantee?
1
Has Paul Ryan and Pinocchio ever been seen in the same room?
2
After all, we wouldn’t want to deprive the 1% of their huge tax cuts!
1
But the devil is in the details. Points, on a tax hike here, and a tax hike there for the middle class, are rapidly becoming polemical. Smooth talking Paul Ryan, with his true (or feigned) concerns for the daily bread winners, living paycheck to paycheck, seems to sugar coat the harsh realities of new tax plan, and also seems almost supremely confident in passing this bill. Paul thinks this tax bill is a walk in the park, vis-a-vis the healthcare bill, which proved disastrously distasteful to a few of his own kind.
And then there are these eliminations of the marriage taxes, estate taxes, and alternate minimum taxes, which the super affluent, Trump included, love to death. And Trump says (paraphrased) in his cliched ways, ''Believe me, I am not going to benefit from this tax plan''. If the GOP is shooting for a simple majority, this is a mean and inconsiderate way of ''shoving this tax plan down the throats of all'' and striving to achieve a legislation, come what may. It has got to be a tough tussle for both the parties.
The GOP will continue to contend that this a set of ''bare-bones tenets'' to simplify the tax code. More mendacious, it can not be. It appears that duplicity might replace simplicity.
Mnunchin says that "some" taxpayers "may" see their taxes increase? The same way that "some" of Trump's political appointees "may" be shown the door when he gets tossed out of office?
What Democrats need to do in opposition is tie taxation to the disparity of wealth in this country. The last time we had a thriving and growing middle class is when the wealthy had a much higher tax rate than now.
Americans have been brain-washed to believe that it is not the government's responsibility to break up excess concentration of wealth in a capitalistic democracy. Without government effort for fair economic distribution, capitalism will always fail, creating an anti-meritocratic aristocracy. And that is what is already happening.
The Republicans want to make it worse by eliminating the estate tax- they cleverly call it the death tax, but only God could tax the dead. Dems should refer to it as the silver spoon tax, or brat tax.
Of course corporate tax should be designed to keep us internationally competitive, but profits of the investors should be taxed at least as much as the incomes of working people.
2
I've seen estimates for our income bracket to from $600-$1000. Sure, every little bit helps. But if they think that $1000 will "stimulate the economy they're smoking crack. That $1000 would either go to cover skyrocketing healthcare costs (which go up far more than that every year) or to my kids' college tuition bill. He'd be $1000 less in debt when he graduates. I'm sure he can buy a small condo with that right? :)
1
Increasing taxes for the middle class in blue states, by eliminating the deduction for state and local taxes, is just what Trump's base likes to hear. And we in those blue states do not have enough senators or representatives in the House to block it. Rather brilliant political cynicism in action.
1
Taxes may rise on the middle class so that the wealthy can see a tax cut. That is simply perverse out come for our elected leaders to be striving, particularly when our president, Secretary of Treasury, and director of the National Economic Council are among the wealthy who will directly benefit from these efforts. Moreover, describing any such outcome as "tax reform" is really despicable.
1
I think we've seen this movie before.
Donald Trump’s and the Republicans' tax plan overwhelmingly benefits wealthy Americans, like himself, while leaving lower- and middle-class Americans behind waiting for the trickle down to occur (which it won't because it never has).
Millionaires and billionaires in this country get even richer. The lower and middle-classes get bupkis.
1
Trump made the risible claim that this bill was “very bad for me” when he rolled it out.
In the one page of his strategically leaked 2005 tax return, the little we learned was that the alternative minimum tax was all that stood between Trump’s $31 million tax bill and a liability of zero.
I don’t think that “very bad for me” means what Trump thinks it does.
The whole thing is another trickling down our leg while the party of the rich tells us that it’s raining.
1
Gary Cohn has estimated that many middle class households will get a $1000 benefit if reform is passed.
Cohn was quoted as saying that middle class families can use that $1000 to remodel their kitchens.
I assume I will get this money, so I started my remodeling yesterday. The budget ran out today.
1
Once again, Trump gets elected on promises that are not going to be kept. So far, he has NOT delivered on a single promise.....AND YET HIS FOLLOWERS STILL KEEP ON SIPPING THE KOOL-AIDE!!!!!!!!!!!!!
His supporters do, and will, continue to back him, even if he doesn't fulfill a single campaign promise! And here is the MOST DISTURBING part of that fact, they will stand behind him till the very end for one reason, and one reason only, they think it is funny that the liberal left hates him. They don't care what he does wrong, as long as he upsets those on the left. Doesn't matter that the country is being hurt in multiple ways, what matters is that they can stick their tongues out at the educated class of Americans!!!!
They are fully vested in cutting off their nose to spite their face!
Idiots.....one and all!!!!!!!!!!
3
How did Gary Cohn rise to #2 at Goldman $ach$ when he is such a clueless tool?
He claimed that the average ‘Murican family has an income of $100,000, which overstates by a mere $45,000. Then he laughably claimed that the $1000 tax cut would be enough to either buy a new car or remodel a kitchen.
Just about as clueless as when Poppy Bush was on the hustings and completely flummoxed by a supermarket price scanner.
2
The republicans have become socialists, so are the democrats.
What's the difference between them now ? Both rise taxes, both support Saudi Arabia and islamists, both kill childrens thanks to their drones.
Reverse Robin Hood GOP tax scam for the top% as usual with an increasing deficit they no longer care about , because they get more $ & the working class will get needed programs cut to pay for it !
1
What???? Republicans want to take money from the poor and middle class and transfer that wealth to the wealthiest Americans??? What a shock ! . . . if you've been living under a rock for the past 3 or 4 decades . . . or if you are an ill-informed Trump supporter and only listen to fake news.
We have the government the American voters deserve. We will continue to be raped by the GOP until a large number of those people with their heads stuck up the right wing echo chamber find their way to reality. I'm not holding my breath. There is a reason, afterall, that the nickname of the Republican Party is the Party of Stupid.
2
SO now, after a yearS of promising to cut taxes for the middle class, they finally admit that a third of all middle class tax payers "may" see their taxes GO UP while businesses and the idle rich see their taxes GO DOWN!!! Ah yes, the old bait and switch!!! GOP liars and thieves doing what they do best.
Hey America, ARE YOU TIRED OF WINNING YET???!!!
IMPEACHMENT NOW!!!
One of the bright ideas they have is doing away with the mortgage interest deduction. If they just cancel it outright there will be such a real estate crash that 2008 will be forgotten. Most people have structured their home purchases with the interest deduction in mind and would be unable to make their payments without it. Millions of homes would be foreclosed and no one would buy another; we would become a nation of renters.
You could, perhaps, phase it out over, say, twenty years but that wouldn't have much impact on tax payments for years.
Eliminating the deduction for medical expenses will hurt the elderly who need long term care. My mother had long-term care insurance which made it possible for her to stay in her home with 24x7 care. The insurance paid about 70% of the expenses. The rest was paid from assets that she had saved over her lifetime. Those expenses were a medical deduction that along with her property tax minimized her income tax burden. Without these deductions, her tax would have been about 15% of her income (several thousand dollars at least).
We were lucky that we were able to make sure that she could stay in familiar surroundings (critical for the well-being of someone with dementia) . The possible increase in tax burden by the loss of these deductions might force other families to make a different decision about the care of their parents
I've thought about it and if the Republicans guarantee every single person who gets up and goes to work each day at minimum a living wage, I'll pay my tax increase without complaint. And all senior must be taken care of as expected until the point when they are grandfathered out of their original understood claim.
With any big policy change, some people are bound to be negatively affected, Obamacare is a very good example of that. But with this tax initiative uber rich are getting a healthy tax break at the cost of middle class and the Treasury; how can anyone justify this!
2
"Mr. Brady said that it was impossible to assess the tax plan without details on what income levels would fall into the new tax brackets or the size of the yet to be determined child tax credit."
OK: If the Tax Policy Center is "just guessing" that the tax policy is a bad one, isn't Brady "just guessing" that it will be a good one?
It's a pipedream of the Republicans that the lower tax revenues will boost economic growth that more than offsets the tax loss. It never happened. Moreover, the 1.5 trillion cost (it's most likely much more) the GOP expects to offset with this economic miracle is based on a sustained annual growth of 3% over the next ten years- that wont happen either. And then, if you add the costs of the GOP promises on infrastructure improvement, a leap in defense spending and increased interest payments on the blossoming national debt, the economic picture becomes absolutely untenable- it is beyond Voodoo. It will happen, and congress will then trim the only expenses left in the budget: the social programs.
1
Based on my personal calculation if, like me, you live in a hight property tax and income state (SALT), like California there will be a significant tax increase for the middle class.
This could force seniors to have to sell their homes, and could cause a negative impact on real estate values. We saw reduced real estate values lead to foreclosures during the Bush Administration.
This tax bill seem to really only benefit the wealthy.
In other words, they're planning to eliminate deductions for the middle class while giving the wealthy more methods to hide their wealth from the IRS (pass through rates). They figure working class Trump voters, who probably don't make enough to need itemized deductions, will be on board because the doubled personal deduction will give them a few hundred dollars savings; a relatively low cost to the government.
So, they can sell it as a cut for the 'middle class' (i.e. lower middle class/working class), while giving their rich donor buddies a gigantic personal tax break. Worse, because they're also going to cut business taxes, likely these same wealthy people getting a personal break will also receive business breaks, which will translate to higher profit margins, which translates to higher executive compensation. They'll be making more while paying less.
You think income inequality is bad now; wait a few years and watch the mountains of cash flow from the mid-to-upper middle class into the pockets of the ultra wealthy. Meanwhile, less tax revenue will increase pressure on congress to enact cuts on social programs, science, and perhaps even entitlements.
I noticed this after first reading through the proposed "plan". My tax rate as a percentage of earnings would not change but deductions I qualify for would be eliminated. As far as I understand arithmetic that means I pay more tax.
Many people who are in the middle class or who are the working poor could see their federal income taxes go up under this plan. The only people guaranteed to get a tax cut are those who are well above the threshold for the 39.6% marginal rate.
My wife and I make $86,000 per year. We are fortunate and comfortable. I calculated what our tax cut would be under the best scenario (if we were in the new 12% bracket). We file a joint return, have no dependents, and claim the standard deduction.
We would save - at most - $1400 per year (going from $8800 to $7400 in federal income taxes).
- We saved almost this much by canceling cable and cutting the cord.
- We saved almost this much by switching to a cheaper cell phone plan.
- We could spend a few hours and get this much from sign-up bonuses for opening new checking accounts or credit cards.
We don't need a tax cut. We are fortunate to have everything we need and want. We would not spend thee money from a tax cut (boosting the economy.) We would just save the additional money (driving already inflated asset prices - like stocks and real estate - even higher).
I would rather see the deficit come under control. I would rather see public investment in infrastructure, education, and advanced research. I would even be willing to pay higher federal taxes to support these goals.
1
The Republicans say that it is not possible to guarantee a middle class tax cut. But it is, it absolutely is possible. All we need to do is to crank up the tax rates on millionaires and billionaires and treat carried interest as the ordinary income that it is. Presto! Trillions of dollars can be allocated for a massive, real tax cut for the middle class.
Do understand this correctly? They tried to take away the ACA protections, and now they want to eliminate the deduction for out-of-pocket medical expenses? Even with insurance in place, for some people, especially those who rely on Medicare, these expenses can be significant...
Perhaps we need to define what is middle class. There are undoubtedly many who earn, say $300,000 who believe they are middle class, while others, say those earning $75,000 who would consider $300,000 income as "rich". Who is right ? I don't know. I suppose it depends which end of the spectrum we are in.
Should the middle class get a reduction in tax rates ? Of course, we all agree. Should tax breaks which help primarily high income people be curtailed ? Of course, we all agree. But wait a minute. What happens when some middle class taxpayers also use tax breaks ?
This is not simple, is it ? Not for me anyway. The internal revenue code is one of the most complex laws on earth. There is no simple fix. There will be winners and losers. We cannot readily decree that anyone earning under a certain amount must get something and everyone earning over a certain amount must lose something. A simplistic approach like that cannot work.
So, as long as we remain fixated on, say, precluding those above a certain level from getting a tax cut, we may lose sight of the real objective, and that is to put as much money back into the middle class and lower earners as responsibly possible. If we follow a mandate that no matter what, a high earner can't get a tax cut, then all we get is a delay in giving tax cuts to everyone else.
Honestly, as long as middle and lower earners get needed breaks, I for one don't care if some higher earners get some too.
It would be plenty possible to cut taxes for all middle class people. Just tax the rich way more like other places do.
The middle class will have to make up what the tax cut of the 1%. The money has to come from somewhere.
Forget about whether or not "taxes" will rise on the middle and working classes. Keep in mind the other side of the balance sheet:
As soon as the deficit is run up by giving the lion's share of the tax cuts to the 1%, and the "trickle down" effect fails to materialize (it never does), then Republicans immediately will start clamoring about the need to address the deficit emergency they have created by gutting Social Security, Medicare and Medicaid.
Cuts to your SS and Medicare will underwrite the massive tax cuts to the 1%, John and Jane Q. Public.
if they wanted to cut taxes for middle class working people they should cut payroll taxes. they can do this by raising the cap on payroll taxes--ss and medicare--to cover all income. that would really lower taxes for the 80% and at the same time help fix the security net.
The answer is for the middle class to become corporations. Businesses are always treated better by politicians than humans.
Perhaps it's time for the Republican Party to officially change its name to the Robber Baron Party..... or the Reverse Robin Hood Party...or the 1% Party....or the Grand Oligarch Party....or the Gazzillionaire Party....or the VIP Lounge Party.
Republicans simply like to have 100% of the nation's assets and income split among the richest 1%.
The 99% Extermination Party would like your support, America.
52
Do people not see that Trump and his wealthy cabinet are only looking to benefit themselves and their rich friends. Those people who voted for this fool wonder why they will get some crumbs, they deserve it, but the rest of us dont.
23
Reducing taxes on anyone but the filthy rich was never part of the plan. Look who is behind all of this.
19
So this is what "Exceptionalism" looks like :-)
11
The Republican plan stinks, but it is ridiculous to expect that not one single middle class person will see an increase.
They're saying 30% of the middle class may see an increase. What percentage of the wealthy will see an increase?
2
Why? It does not seem ridiculous that every rich person gets a tax cut.
2
This is my shocked face. No. I'm really surprised.
5
"I guarantee we are going to improve the lives of every American by driving down taxes and increasing paychecks.”
At the expense of what?
9
Can anyone explain the logic behind passing major legislation on a 50 vote margin? Without broad, bipartisan support, the new law will be undone by the next majority.
This rapid change of policy is bad management: government by jerks.
8
They can steal and wreck a lot in 3 years. That's Donnie's MO, never in it for the long haul. Get in, grab what you can and get out leaving the lawsuits in your dust.
Of course, someone got to give to keep the flow of wealth to the rich and wealthy from ebbing.
5
P.S. Or better yet, America could be renamed “Pottersville.”
13
As long as the wealthy get their tax bills cut the rest of us can go die in a gutter, right Republicans? In what reality does cutting taxes for those with the most and raising taxes on the poor and middle class make America Great again?
14
I think it's kind of amusing when Republicans have to turn campaign rhetoric and talking points into actual legislation. They are similar to cockroaches when lights go on.
8
Make a flat tax rate and charge everybody the same. There's a crazy idea, treat all Americans the same way.
2
Yes. Let's everybody pay $30,000 a year.
A flat tax equals a huge tax cut for the wealthy and a huge tax increase for the poor. I agree with you on one thing. It's a crazy idea.
Skin in the game is starting to sound more like a pound of flesh.
7
Why can't we read an article that teaches readers about the real US tax code. So many are clueless, and I can't blame them. One needs to be a tax attorney to understand the code; it changes every few months!!!
Congress - Dems are not excluded by any means - continues to update tax code in unrelated bills; continues to favor special interests. The loop holes abound, but with them come more stupid subsidies that cannot be maintained over time.
Come on NYTs, is it so hard to actually educate readers or are you so stuck with progressive agendas that honesty and clarity are a thing of the past. And Dems wonder why they lose elections?
1
We don't wonder why we lose elections. We understand very clearly Republicans cheat.
1
What about the category of head of household? If the Republican plan eliminates this category, it will produce tax increases for lots of single parent families. And that would be by design, not by accident. As a group, single parents are a "throw under the bus" group.
My biggest complaint is the lack of transparency and honesty. Do NOT lie and claim that huge percentages of corporate tax cuts trickle down to consumers. And do not lie and claim that there will be extraordinary job creation. These are lies repeated over and over as if they were true. Frankly, this is one of the similarities between the Republican leadership and President Trump - the enthusiasm with which they lie, brazenly and repeatedly, for personal gain. If you believe that government should be smaller, JUST SAY IT. Just like with health care. If you favor private markets over access to health care, JUST SAY IT. Don't hide behind lies.
12
Let’s be clear: the tax reform proposal is an attack on the middle class. Eliminating the tax deduction for state, local and property taxes would affect millions of middle class itemizers. Repealing the state tax deduction, together with scrubbing the individual exemptions ($4,050 per dependent) would be a gut punch to the middle class. In the Rupert Murdoch/FoxNews propaganda stream, they see it as just desserts to the blue, liberal high-taxing, high-spending states.
Here in Red State Nebraska, which “enjoys” the dubious distinction of holding 7th place on the list of states with the highest property taxes, the effect on middle class taxpayers would be significant: an increase of $1500 to $4000 per family of 4. That same middle class tax increase will play out across nearly all states – not just NY, NJ, CA and IL.
And here’s the real smoke and mirrors part of the proposal: The Republicans brag about doing away with the hated Alternative Minimum Tax (admittedly an unfair and ineffective tax that is so awful, even the IRS has lobbied for its repeal). But look at the AMT Form 6251, and note the deductions that get included again in income: personal exemptions, plus state and local taxes….the very same deductions that the Republican plan will eliminate for every tax filer. So… therein lies the truly iniquitous part of the Republicans’ plan: while abolishing the AMT (in name), it actually IMPOSES the AMT on every tax filer….Talk about an attack on the middle class!
16
The AMT exemptions should be adjusted regularly so the middle-class and upper middle-class are not subject to paying AMT. Other than that, it is in no way unfair and ineffective and is the only way to force the wealthy to pay their fair share of taxes.
If the middle class can't receive a tax reduction and may even see an increase of their share of taxes then the wealthy and corporations shouldn't receive a tax reduction either. That would only be the fair way to proceed. This whole plan is starting to smell.
10
The top 1% of earners pay 40% of the federal income taxes collected while 47% pay none.
Well, the Republicans have already moved the goalposts from "cut your taxes" to "not increase your taxes." Yay! What a wonderful win that will be for the simpletons who voted for them. Meanwhile, states like New York that already pay more than they get back from the Federal govt so that southern states can benefit will pay even more through the nose. Bravo! Sounds like a plan!
7
ANY part of the GOP tax plan that hikes taxes by even as much as a penny to ANYONE in the middle or even the low income group who are struggling to get by with multiple jobs and any other endeavor to put food on the table and put kids in school while ceding MILLIONS to those who clearly haven't a worry in the world about getting by...should be questioned.
And a Congress that approves such lunacy should be voted out.
10
Personal income tax: Bait & switch. Kill it.
Corporate income tax: By bipartisan concensus dramatically slash it. Why not zero, if not for all profits then at least for foreign profits?
This would incentivize repatriation of (MASSIVE) foreign profits and stimulate needed investment in the US.
2
Crazy. Once again a Trump policy ends up being the exact opposite of what was promised.
7
It is just astonishing that Mnuchin, Cohn, Trump and the rest of them are not challenged to explain exactly how much they will save by the elimination of the estate tax. Instead they are allowed to peddle the obvious falsehood that wealthy people like them will not benefit enormously and disproportionally from this wretched proposal.
And the ever smooth talking Mulvaney disputes contrary analyses because so much detail is yet to be determined. That hasn't stopped Trump, et al from claiming a windfall for the middle class.
The only saving grace is that Republicans can't agree what day of the week it is and Trump is more concerned about his next piece of chocolate cake.
5
Right, the middle class may wind up paying more taxes, and some in the lower class will pay more taxes for sure (as the lowest rate would go from 10% to 12%). But one thing the administration can ensure, the upper class will pay less taxes.
This is because the rich are clearly suffering so much from being overly taxed at one of the lowest rates on earth for their bracket, and they need more private planes, private islands, and extra houses. So for certain, taxes will be lowered for the rich.
The only good thing about this misbegotten tax plan is that it almost surely will not pass through Congress. Trump has made too many enemies, and after the debacle of the repeated failures on Trumpcare, it's likely that his tax reform idiocy will not pass either. The only thing saving us from the evils of Trump, is the incompetence of Trump.
12
Instead of draining the swamp, with this new tax plan the Republicans are turning America into one big swamp with rich crocodiles consuming the rest of us. If this plan passes in its present form, or even with a few crumbs thrown in for the "middle class," it might be appropriate to rename our country, Swampland.
4
The new tax plan shows that either Republicans have utter contempt for the American people or they are demented. Anyone discussing this plan as if it is in any way realistic, and not calling for its immediate and outright rejection and expressing outrage at the plan's proponents, must have still be in shock or deeply depressed.
7
I am ceaselessly astonished and bewildered by middle class Americans who vote for Republicans.
I guess cultural anxiety obliterates critical thinking skills.
10
“We know that the rich guys are going to be fine,”,, good to know. This "No Wealthy Left Behind" law is a work of art. The amazing President Trump will see to that. Guaranteed
7
To me, it appears this effort at tax reform benefits the wealthy who have more than 80% of the wealth in this country. The majority of Americans will never have estates worth more than $5 million. Keep the estate tax.
Also, while they will keep the mortgage interest and the charitable deductions, what about medical expenses and capital gains and/or losses as well as property taxes? My husband and I have found over the years, the mortgage interest AND the property tax deductions effectively lower our rate. And what about seniors with medical expenses? That will figure into their tax as well.
On top of this, 1.5 trillion will be added to the national debt --- with 10.3 trillion added during the Republicans under George W. Bush. Personally, I believe taxes should be raised equitably and there should be spending cuts.
Mrs. K
3
The purpose of this tax cut is not to ease taxes on the middle class. The purpose is to take more money from blue states and give to the wealthy in red states.
9
Middle class tax savings will likely all be spent on household expenses. This will drive up revenues for businesses which in turn might lead to increased hiring to meet the demand. Guaranteeing a savings for the middle class is easy: lower the rate and leave the other rules in place for them. Republicans arguing otherwise are simply over complicating the matter to distract us from the real goal of adding wealth to the upper class, who likely will spend very little of their savings.
1
One guarantee the GOP can make: the rich and super rich will get even richer and entitlements will take a big, big hit.
7
Anyone unhappy about the Republicans being in charge should blame not those who voted them in but those who didn't vote at all. Instead of bellyaching about biased cops and objectionable statues, people should make their voices heard and vote for candidates who will do something about those things and put the interests of the middle class and the less fortunate first. I have no respect for people who don't vote. And don't come back at me with tales of voter suppression. Those tactics wouldn't work if people insisted on their rights. I know if anyone tried to suppress my vote I would do whatever it took to keep it and I make sure to vote them out of office.
2
Of course it's 100% certain that everyone in the top 1% will get a tax break. Winning!
6
Repealing the deduction for state and local taxes punishes citizens of states that have a stronger commitment to their citizens to provide better security, health services, education, and infrastructure than the states that look to the federal government alone to provide a reduced level of benefits.
The fairer choice is to keep the deduction for state and local taxes; and to eliminate the charitable deduction. There is no territorial or political bias to eliminating the charitable deduction for all American citizens.
3
But they can guarantee that everybody in the top 1% will get an enormous windfall tax cut. They in Trumpland need to spend a lot more effort to make the middle class great again.
4
Yeah, like ME! I've already figured this one out. They're doubling the standard deduction to $12k - which happens to be exactly what my itemized deductions work out to each year - and then taking away the deduction for state and local income taxes. Thanks GOP!
Shoulda voted for Hillary, people...
7
They are putting cheese on a trap, they are not giving the mouse anything. All these cuts are really a loan because they drive the debt up. They are a loan that the wealthy will avoid paying but will force the middle class and poor to repay with interest to the rich. They will use this higher debt amount to justify cuts to schools, healthcare, environmental protections and more, especially Social Security and Medicare. Don't go for the cheese, oppose this fraud.
5
This is a tax scam propagated by those who will benefit the most at the expense of the American public's treasury.
President Trump refused to release his tax returns or put his assets in a blind trust like other modern Presidents. It is apparent why.
He and his family stand to receive a windfall by favoring pass through income over wage income, eliminating the alternative minimum tax and the estate tax - well over $1 billion.
If there were a list of Americans who stand to gain the most from this tax scheme, he would be near the top.
The average person or family making less than $400,000 a year will see an increase in after tax income of less than 1%, with the median gain about $50 to $100 a month.
Those making a million dollars or more will see an after tax increase in income of 20% or more, with 80% of the tax cuts accruing to the top 1%.
By destabilizing the fiscal budget and increasing deficits, it ensures more focus on cutting Social Security and Medicare costs that have been paid for decades by retiring Baby boomers through a regressive payroll tax.
To call this tax reform is absurd. It is crony corruption at its worst, picking winners and losers - with the biggest loser 99% of the American public.
Taxing income that has already been taxed by eliminating the state tax deduction, and dropping the estate tax that already has a $14 million exemption, is a third-rate shell game akin to Putin's kleptocracy.
6
And the Trump voters will support this reform. Why?
Because they only listen to Rush, Fox , Hannity and Tucker, and according to them, supporting this tax-reform ( and this President) is the patriotic thing to do.
And if you don't support this reform, you are un-patriotic, like the NFL players who kneel during the national anthem.
4
We do know for sure, though, that with this plan the taxes would go down for everyone at the top!
5
Too bad the headline did not read: Republicans Won’t Rule Out Tax Hikes for Some in the Upper Class.
We know what the GOP's priorities are.
1
Anyone who has problems with the GOP tax scam but did not vote for Bernie Sanders should not be expressing frustration.
Bernie explained the issues about wealth inequality. He did it simply and clearly.
Did you listen to him?
1
Doublespeak and hypocrisy thy name is a gerrymandered Republican congressman. When they can openly criticise the fact based assessment as a canard without proffering alternative factual data - we live in a surreal world.
We can lament all we want but the hypocrisy demonstrated by the Republican double speaking fork tongued Congressional politicians will continue to spread the ruin of their future American grandchildren forever. These politicians will not be there to pay for their prolificacy but the servitude they are guaranteeing their grandchildren will follow them to Hades.
However, I tax cut for ALL millionaries and billionaires is achievable.
Thank God!
Trump is the beginning of a coup d'etat by rich whites over the republic, ironically using the "Republican" party. A large portion of whites scathe at being governed by a person of color. I know some of them, in my own family. They started preparing a takeover of government with the Citizens United ruling, the very definition of undemocratic rule by money.
In 2009, anti-colored whites started looking around for ways to hold onto power. Democracy was out, since numbers were against them. But they had money; more than any other group in the country, and they controlled industry which by nature is undemocratic and can easily block colored access. So there is the strategy: let dark money corrupt the political process to block majority rule, withdraw any more bleeding of white funds into the federal government through tax cuts for the rich, and, through the NRA, arm militias to defend them against public strife. Folks, the US is no longer a democracy. It is South Africa with Hollywood to smooth out the kinks and fool us otherwise. RIP.
3
"Some" may be as few as 99%.
Well, DUH! Also note the details of the plan that have been released so far, actually raise taxes on some of the poorest Americans.
3
The fox is in the chicken coop and intends to rob it blind. The "tax cutters" are turning the swamp into a veritable black hole, vacuuming the taxpayers dry. When taxes are cut, so are services, it is that easy. If those services are not subsidized by the Federal government, they will be paid by state governments, who are, simply put, less functional. Ultimately, the money has to come from somewhere and it won't come from the rich; the poor will suffer. America, wake up! You get what you pay for and we can have it all, if we are willing to pay. Republican "tax cuts" are the ultimate, billionaire sham!
2
And there it is. We've been waiting.
1
I don't really have a problem with tax hikes but not to pay for breaks to the parasitic Mnuchins and Trumps of the world.
2
Look, people don't seem to understand that the crumbs falling from the tables of the wealthy are a beneficent gift to the middle class and poor.
So the core of all tax policy should be to cut taxes as much as possible to the wealthy and by default everyone else benefits.
Of course it will be important to make sure that the middle class and poor can not exert any pressure to increase their incomes or decrease their taxes, but not to worry, the Supreme Court has that covered.
This has always worked in the past, right?
The Repubs do not care about the middle class.
They certainly do not care for the poor.
The proposed RAISING of the lowest bracket from 10% to 12% puts this into stark relief.
Here's an idea: Raise the standard deduction to $50,000. Tax capital gains the same as income. Eliminate the second home mortgage interest deduction.
These measures would provide meaningful tax relief to the Americans who need it most.
3
And so we, the middle class will suffer a tax increase so that the top .1 % can get millions of dollars back in tax returns? And Trump himself stands to benefit close to $1billion. This is not right. But perhaps Berny was....
4
The proposed tax changes will increase significantly the taxes paid by seniors with modest or low incomes who own their homes, currently itemize deductions, and live alone. Losing entirely the ability to itemize deductions for property taxes, state and local income taxes, and medical expenses would be a huge blow. During the past tax year, for example, my itemized deductions and single exemption totaled over $25,000. Under the new tax proposal, this all would be replaced by just a single $12,000 deduction, so I would pay taxes on $13,000 more income. Additionally, almost all of my income was taxed at the lowest 10 percent rate, which would now increase to 12 percent. Increasing the child care credit would not be any help to me or most other seniors.
Most people with low and modest incomes will pay more taxes under the Republican plan, but this will especially hurt modest income senior home owners.
9
It's amazing how there can always be tax cuts for the wealthy but finding them for the middle class is a struggle.
4
The Tax Policy Center is a biased organization that is stridently anti tax relief and always has been. This entire article is based on an analysis that is complete bunk. Given the complexity of the tax code, the only way to guaranty that every single person in the middle class would receive a tax cut is to significantly reduce the income tax rate and leave all itemized deductions in place. Of course, then the Tax Policy Center would complain that the deficit would grow by trillions of dollars.
The one thing we did learn from the leak of the single page of Trump’s 2005 tax return is that the Alternative Minimum Tax was the only thing standing between the $31 million in taxes Trump paid and a zero liability on hundreds of millions of dollars in income.
So yes, eliminating the AMT directly benefits both Trump and the rich in general.
Your argument is pure bunkum.
1
Of course, it will increases on the middle class! Every so-called tax reform sponsored by the GOP increases the tax burdens of the middle class while decreasing taxes on the wealthy. Increase the lowest rate from 10% to 12% and eliminate both mortgage interest deductions and all personal exemptions? Classic conservative "smoke & mirrors."
4
So, federal tax deductions for local and state taxes would be eliminated under this Republican proposal, obviously making it more difficult for local and state governments to fund their activities with local and state tax revenues. Meantime, Republicans are always wanting to offload federal responsibilities onto the states. Consider, as just one example, the recent Graham-Cassidy proposal, which would have offloaded federal responsibility for medical care to the states (along with federal block grants that would have totaled less than the current federal contribution to health care).
I don’t think many governors will find this tax proposal appealing.
3
This is starting to sound like another case of "we said we'd address this issue, so we have to do something, we'll figure out the details later." Here "simplifying the tax code" is now presented as an unambiguous good, regardless of the outcome, just as "repeal and replace Obamacare" took on a life of its own, without concern for the end result.
But of course simplifying the tax code makes sense only if doing so is guided by key principles that allow you to judge whether a proposal helps to achieve that goal.
I was badly hurt by the Reagan "tax reform" in the 80's. Due to a change in how donations to charities were figured, I was forced to make a donation of an appreciated piece of land all at once, or else I would have to have paid capital gains on the appreciated value - impossible for me to do. So, I lost thousands in tax benefits.
Now, this plan is going to take away my ability to deduct my mortgage interest and my property taxes. So, my taxes will go UP, not down. And I don't earn even a 6 figure salary each year.
Democrats don't offer people like me anything that will benefit me, and now Republicans are doing the same. Just where do I go? I am NOT a rich woman and a raise in taxes will hurt me, as my property taxes just keep going up and up on a house I purchased 33 years ago. It's those with incomes between $60,000 and $100,000 who are going to be hurt, and we're the ones who have worked the hardest over the years and gotten very little in return. We don't get much financial aid for college - we earn too much. Now, we don't get the deductions on which we made long-term financial decisions.
We are quickly becoming a country of the very rich and the poor with those in the middle paying the bills for all.
7
Until many of the details are worked out - this bill should not be voted on. Yes, I know Trump et al, would like to have a win in their column, but ... weren't any of these GOP elected officials trained to read a document all the way through before signing/voting/acting on the document? I know I saw this in action during a 5th grade exercise - it made a lasting impression on me.
1
The 27th amendment to the Constitution states:
"No law, varying the compensation for the services of the Senators and Representatives, shall take effect, until an election of representatives shall have intervened."
In the spirit of the this amendment I propose that no Senator or Representative plus the President and Vice-President shall be have their federal income reduced by new laws until they stand for re-election. The implementation should include the requirement that the President and Vice-President and all Senators or Representatives prepare pro-forma versions of their federal income tax return reflecting the changes in tax liability reuslting from passing changes to the tax code, These pro-forma returns should be available for public scrutiny.
2
Based on the sketchy details released so far it is obvious that whatever tax breaks occur will be on the backs of middle and upper middle class single taxpayers. Based on a Google search, 50% of the taxpayers in the US are single - divorced, widowed or never married.
An article published in 2013 in "The Atlantic" provides a detailed analysis of the many ways singles are financially disadvantaged in the US by a variety of government policies - not only income taxes but almost across the board. The article uses single women as their example but virtually everything unfair they discuss is applicable to men as well. Egregious financial unfairness is being perpetrated on fully one-half of the US taxpayers. The url is for the article is:
https://www.theatlantic.com/sexes/archive/2013/01/the-high-price-of-bein...
Single people, especially homeowners in states with higher income and property tax rates are going to be heavily penalized. In my case, between the $4050 personal exemption and my legitimate deductions (mtg, state tax, real estate tax) my deductions totaled $26,000. Trump's proposed $12,000 standard deduction for single people is less than half of my legal, allowable deductions. I will be left paying taxes on $14,000 more income in 2018. And to make matters worse, the first $12,000 of income will now be taxed at 12% rather than 10%.
The unfair impact on single taxpayers of the republicans' tax plan needs to be publicized.
6
Taxes on the lower end may also go up becaise the marginal tax rate for self employed as well as the lowest tax bracket goes up to a minimum of 15%.
Since the 90's the share of US GDP that accrues to the lower 90% of US workers has declined. And the percentage of GDP growth that goes to it has also declined.
The GOP, however, wants to increase the total federal tax burden on the 90%, and decrease it for the 10% (and 1%) to which an increasing percentage of GDP now goes.
When you get past the smoke and mirrors of of the Trump cabinet and the GOP Congress, America's super-wealthy are taking more of the national GDP, and paying less taxes for a large slice of the pie. Win-Win!
The historical record of US GDP, not only shows no accelerated growth after the Reagan and Bush tax cuts, it shows a a decrease in the share of wealth to the 90%, and in the opposite of trickle-down, and an increase in the share of GDP wealth to the 10% and 1%.
2
Please of course the Republicans are going to balance some of the massive cuts for business and the wealthy on the backs of the middle class and I suspect the poor as well. If they manage to pass a bill I have complete faith in my taxes increasing.
After all they haven't told us what income levels fall into the new rates have they?
Well, as long as the top rate drops from 39.5% to 35%, or slightly more than a tenth, then Ford's in 'is flivver an' all's right with the world, isn't it?
For a person with a serious income -- say a guy who makes a ton of money putting ormulu on old hotels -- this is a saving of $45,000 on every million of annual income.
That's a saving, a real live, take away and stick it on the next helicopter to Grand Bahama, saving of more money than most individual Americans make -- total, whole, entire income -- in that same whole year. On each of many millions.
And they had to work for it.
1
How about restoring a little progressivity by adding a 40 percent tax for the top 2 percent of incomes? Then it should be easy to guarantee the middle class and below the tax cut promised.
Make no mistake: A tax cut for the middle class is absolutely achievable. If the GOP plan weren't funneling money to businesses and the wealthy, then everyone in the middle class could get a tax break.
When Mnuchin says it can't be done, what he means is, it can't be done because he, the 45 administration, and the GOP members of Congress who vote for this couldn't care less about the middle class. They serve the wealthy and big business.
4
Instead of tax CUTS for the upper income tiers, corporations, and large estates, let’s make them tax DEFERRMENTS. If in 10 years, the “trickle down” has once again failed to materialize – our deficit has risen and our tax revenue has fallen - then the deferred taxes are due.
If strong economic growth follows tax cuts like May flowers follow April showers, who wouldn’t take that deal?
A plan that provides tax cuts for the wealthy. Not surprising considering the source. I've heard it referred to elsewhere as "Wealthfare."
2
I need some help! Would someone with common sense and critical thinking please explain to me why Repubs have been complaining about the high costs of the ACA and yet are proposing to eliminate deductions for medical expenses in the new tax plan. It doesn't make sense to me, but I'll admit that I may be missing something.
1
How to know if the Republicans are lying about tax reform (besides "whenever they open their mouths"): If they really wanted to reduce taxes fairly for everyone, they could simply increase the personal exemption or decrease the tax rates--ideally in a progressive structure which ensures that everyone benefits equally. Anything beyond that amounts to changing tax policy, i.e., who pays more tax in order to allow others to pay less. This is the only way that a tax bill can be revenue neutral: divvy up the same dollars differently.
If they argue that some must receive greater tax cuts in order to stimulate revenues that will then offset the cuts, they must produce real evidence of that, particularly evidence that cuts for the rich (who don't spend all their income) would have a greater stimulus effect than cuts for the less well-off, who do spend their income and would thus very likely spend their tax-cut income, directly stimulating the economy. And don't tell us that you have evidence you will show us sometime in the future or that proof will materialize then. We already have a long list of secret plans, exculpatory documents, and tax returns that we are waiting for, thank you very much.
3
I suppose I'm in the middle class, broadly defined, because I'm not in the top 10% of wage earners and I make less than $200,000 per year. I live in a city with a substantial wage tax and my only deductions each year are for charitable contributions and state and local income taxes. If the latter deduction is eliminated, my taxes will go up.
We have a profound fiscal problem with the national debt. I understand that in order to solve that problem, my taxes probably need to go up. And I'd also be happy to see my taxes go up in a true revenue-neutral reform bill (one which does not use dynamic scoring) that reduces taxes on lower-paid wage earners.
But don't raise my taxes at the same time you lower taxes on persons making more than $400,000 per year. Don't tell me you are proposing a middle class tax cut when you are proposing to cut the top rate on the rich from 39.6% to 35% (which only applies to annual income above $400,000). Don't tell me you're offering a middle class tax cut when you're proposing that hedge fund managers and real estate partnerships that get the pass-through income rate be taxed at 15%, 20%, 25%.
Above all, just stop lying, Trump, Mnuchin, et al.
9
Nobody is saying how Social Security will be taxed. Now up to 85% of SS is taxed
depending on one's income. The new plan looks as if it treats SS as compensation, so 100% of it will be taxed, even though you already paid tax on half of it when you worked and even though it is insurance ( which is not taxed in this country ). So it looks as though if you are in the 25% tax bracket, then you will be giving back one-quarter of your Social Security check.
Republicans have been chipping away over many years and succeeding.
4
The tax plan is a complete sham. Yes, they would double the standard deduction, but they are eliminating exemptions. The net result is either a small tax savings for those who take the standard deduction, or a loss for those who itemize. If they truly want to spur the economy, they would lower payroll taxes, as consumer spending is the key moving force for the economy.
1
Personally, I want income tax REFORM and simplification, but that does not necessarily mean a tax CUT. The US has huge infrastructure needs, an aging Baby Boomer population that will need to be taken care of, hurricane cleanup costs in the billions, trillions in war debt, and an already large deficit among other things. I am more than willing to pay my fair share of taxes to support these things, but I am NOT willing to pay taxes so the uber wealthy and large corporations get a tax cut while none of the above issues are addressed and the deficit grows larger.
94
An easy simplification and fair reform would be to TAX WAGES and "UNEARNED" INCOME AT THE SAME RATE. This would GREATLY SIMPLIFY the tax return. It would eliminate several pages of forms and worksheets for people with a small nest egg of mutual funds. Why should people with more financial know-how be taxed at a lower rate than people who keep their savings in a bank or credit union?
Well said!
Bravo. I totally agree. well put.
The entire Republican economic philosophy since Reagan consists of tax cuts, military spending and increased deficits which, taken together, depress the economy. That downturn allows rich people to spend their tax savings on buying up the middle class at bargain prices.
not incidentally, running a criminal enterprise out of the White House seems part of the GOP deal. That depresses markets even further.
2
A lot of this misses a more important point. Under funded social services, the crumbling infrastructure, poor public schools, understaffed National Parks, the high cost of a college education, the failure to adequately support key institutions like CDC and NIH; all these things reduce the standard of living. It is not just about the money we pay to the Federal Government; a reduction in the standard of living amounts to a huge tax increase on lower and middle class. In calculating the cost, that fact should not be discounted.
4
I am the middle class. My taxes will go up - they always do. The poor don't have the money to pay taxes - and the rich find a way to void them. Nothing new here. In all my 50 years of working life, my taxes have never, even once, gone down.
2
Our national debt is $20 trillion (100% of GDP, highest since WWII).
Our infrastructure is crumbling. We have seen bridges collapse in Minneapolis and Washington state, in the wealthiest nation in the world. Mr. Trump promised infrastructure spending in his campaign.
So, why are we talking about tax cuts?
Rather, it seems that it is time to pay our bills - which we have been putting off for far too long.
2
So, thanks to the GOP, no healthcare reform (not repeal) that would keep premiums lower for those who don't get subsidies, and now tax increases. My guess is that the red hat brigade will be disproportionately hit with these increases, but they will be told that somehow this is good for them. Along with silencers legally sold to add to automatic rifles. The 'winning' just keeps on coming for the moneyed elites who are now running this country.
2
How do you define what middle class is? Here in NJ the state and local taxes are astronomical and the cost of living is high! This is not a fair tax cut!
I think some people may lose their homes or there could be a mass exodus out of New Jersey.
2
I'd say the repeal of the estate tax is a pretty big (enormous) guarantee to a few (very few) people.
2
Complaining about a raise in taxes? I was under the impression that Democrats love to pay higher and higher taxes and that's why Democratic politicians love to raise taxes. Or is it that some pay higher taxes than others?
It's not the TPC analysis that's horrifying enough to be worthy of Stephen King. It's the legislation. And its authors.
2
Now, this could be a very profitable road for the Democrats. Under Trump the wealthy will really benefit and therefore the Democrats need to start working on the following campaign rhetoric which will unquestionably be successful: The time has come to put every one of those wealth focused Republicans not only out of office but in prison as every one of them who supports the tax cuts to the wealthy have stolen from the middle and lower classes and stealing is a crime. A penalty of 1 day for every dollar moved from the government coffers to the wealthy will certainly put all Republicans who support this tax change in prison for many years.
Our current government is being supported by super wealthy people that have their self interest at the center of all their legislation.
4
I've already run the numbers and my taxes will go up. This plan is great for the wealthy and the poor. It's similar to housing in NYC. Only the rich can afford to live here or if you're low income. If you're in the middle, you're likely to be footing the bill for the rich and poor.
7
Even regular lower middle class families with children potentially will come out with higher bills, since each personal exemption is worth 4k. Doubling the standard deduction while eliminating personal exemptions will be, at best, revenue neutral for many families, and detrimental to many others.
The real estate industry will take a heavy hit, even if the deduction for mortgage is left alone. State and property tax exemptions going away will almost guarantee that people making over 100k but less than 400k will pay considerably higher taxes in states with high housing /high wages/high cost of living. Most Americans live in those heavily populated states. New York. New Jersey. California. Texas.
And yet, we are all supposed to just trust 45 and ilk and wait until they actually release a plan before being critical of their "tax plan". However, they have set a precedent of introducing a bill that they have developed in secret and voting for it almost simultaneously so that there is no chance to peer behind the curtain. We would be fools to just sit and wait.
1
So who is surprised. Only large corporate entities and billionaires are people, just check with the court. No military service for them, no risk, just privilege after privilege, free use of public facilities at no cost (no taxes) to them. Maybe I will be surprised and the "tax reform" won't pass.
us army 1969-1971/california jd
4
As a lower middle class disabled retiree, I expect my taxes to go up. There is little written about how people like me will be affected, or about how the poor will be affected. This scares me. The very rich, most of Congress, and many top government executives will benefit from this tax bill. The middle class and the poor will pay for it.
Inexcusable.
46
Tax policy is a zero sum game. Its like splitting the check at a restaurant. In order for one person to pay less, someone else has to pay more. The only way to lower everyone's bill is to spend less. And, like that restaurant bill, spending less and handing the savings to just a few people at the table means everyone else is paying the same amount but getting less in return.
Of course, politicians have been playing this "middle class" propaganda game for a long time. Obama's "middle class tax cut" proposal gave an $8000 tax cut to households making $500,000 and a $600 tax cut to household's making the median income of $50,000. But you would have had to dig pretty deep to find that mentioned anywhere. (To be clear, Bush's expired tax cuts gave that $500,000 household a $17,000 tax cut). In both cases the tax burden was shifted from the wealthy to the middle class and from current taxpayer to future taxpayers in the form of borrowing.
12
Let's see. The expired Bush tax cut of 17,000 for a 500,000 household was slashed to 8,000 under the Obama administration.
Rather than applauding the fiscal conservatism, Repubs sucessfully branded the move as a tax hike fomenting class divisiveness.
Apply this principle of fiscal conservatism to the proposed abolition of the tax on those estates of $10M or greater. What?
2
@Herman
Lets be clear, Obama didn't "slash" anything, he restored a little over half the tax cut for the wealthy and passed the bill to future tax payers.
"Repubs sucessfully branded the move as a tax hike fomenting class divisiveness. "
No they didn't. They successfully convinced the wealthy that they would have gone Obama one better.
Yes, as the article states, the rich will be fine. However, we don't really have to watch out for the bottom end of the income distribution in this case. That is because there is simply not enough money among the poor to fund a nice tax cut for the rich. No, to make it meaningful (for the rich) they will have to dip into the middle class.
21
Angry, middle class Americans put Trump in office because the other side was supposedly, among other things, bought and paid for by Goldman Sachs.
And they continue to support Trump as his Goldman Sachs team sets out to screw them. Wake UP!!
81
What a shock: another transparent transfer of wealth to the richest Americans, who will cherry-pick statistics to make it seem as if they're paying an inordinate share of all taxes right now (which, of course, they are not; they're enjoying an unprecedented period of low tax at the highest end of the income scale, while much of their actual income is taxed under capital gains rates anyway. If the rich were really being taxed out of existence, wealth inequality would be *shrinking*, not widening every day.)
Trillions of dollars in increased productivity/economic activity certainly didn't materialize in Kansas when last we tried to turn Republican fiscal orthodoxy into public policy. I suspect that the people in Washington pushing this plan know that this "experiment" will end the same way: with the middle class holding the bag, and wondering why their infrastructure and social programs are crumbling. Our "representatives" are, presumably, hoping that the smoke screen they've erected will hold for long enough to push this ugly mess through the machinery of the House and Senate.
141
This is not tax reform. It should not be about the middle and the low income groups. It should be about the high and top 1% tax bracket. Sixty percent tax for these folks is very good.
17
GOP=One Note Nelly
It is always the same song. Changing the outfits they wear does not change the song.
2
Why does the Times keep using the misleading metric of a "average" tax cut. If a $2.4 trillion estimated decrease in tax revenue, mostly from large businesses and the top 4% of incomes, is spread across all earners then the majority of people appear to see a large decrease. This is freakenomics 10, not even 101. This is the math that eludes the people complaining taxes are to hard to figure out. A more informative metric is to break out the estimated tax break across the proposed three brackets. Then we can see who benefits and who does not.
1
We CANNOT improve our economy, create jobs, narrow the earnings gap, nor fund the most important services in our national lives, by CUTTING taxes. It doesn't work. I has never worked. It is a LIE and and a wealth grab. Call your representatives, and keep calling them. The next things to go with be Medicare and Social Security, which will effect us all. We can't afford to wait. CALL, and keep calling. WE STILL HAVE THE POWER, unless voters decided to give it away.
11
ChesBay: Tax cuts do work in creating jobs and in improving the economy.
Since the wealthy already have everything they want, if they get tax cuts, they invest it in equities. That does little for the economy.
The 'job creators' such as Herman Cain and Mitt Romney created successful businesses, but they did not create jobs. Their companies took business away from competitors and they hired the laid-off employees of their competitors leaving no net increase in jobs.
If the poor and middle class get tax cuts, they spend it. It's the spending that creates jobs and improves the economy.
2
Allen--There are no reputable economists who agree with you. Sorry. Will this so-called wealth transfer benefit YOU?
As is the standard, Those in the 1% will have an incredible benefit, and the middle class hardworking people in this country will end up paying for that benefit. Millionaires have no idea, nor the desire to get a clue of what it's like to live paycheck to paycheck. In their world that doesn't exist. As one of those hardworking middle class people... I've about had it.
5
KATHY: You are wrong. If you heard Mitt Romney when he was running for president, you would have learned that in his early years of marriage he and his wife had run out of money and had to sell stock.
Fantasy land. Lower taxes leads to great growth which leads to tax surplusses!!! Wow, who would have thought of that!! Well, Brownback out in Kansas; see how that worked out.
12
Even here in Michigan, Dan. Snyder cut business taxes promising it would make our business climate so awesome we'd see tremendous growth, and hiked taxes on working and retired people. Funding for road repairs based on the wishful "revenue growth!" thinking, so absent that growth, road repairs will come out of the already depleted general fund.
Why do these guys insist that doing the same thing over and over will eventually produce different results?
3
Maybe I'm just old, but when did making $300k put someone in the middle class?
11
If a family makes 300K and lives in NYC area they bring home a lot less than that. If they own a home, have a couple of kids, are saving for college and retirement they're probably living a normal middle class life. They're better off than most but they are not rich. Do agree that this proposed tax plan is not fair.
1
It depends where you live and what you're financial responsibilities are. $300k in NYC, LA, SF, DC, Chicago etc. doesn't come close to making you rich. I'm sure Ann Arbor's not cheap either. Housing, college tuition, retirement savings.
Life is expensive.
Surely while the Republicans control the government it would be easier, cheaper, and more direct just to borrow the money and give it to the wealthy. None of these loony faith-based arguments about how this tax cut actually raises taxes. None of these questions about how much the lower class and the middle class get hurt. Only a question of how much to distribute to the wealthy.
3
And we are surprised about this? Oh but "Every single person's taxes are different" – there's one of the issues right there. When I paid taxes in the UK I filled out a one-page form, stated my income, and a clear, specified rate was applied (for which, I might add, I received handsome benefits in terms of health care, sick pay, public facilities and all the other things taxes are supposed to pay for). None of this finagling around with deductions and allowances. We have created a monster of a system in the US, in which those rich enough to get advice can hide their money. Oh, but wait, isn't it now the job of government to protect the rich? So tired of the hypocrisy.
20
"A tax cut for everyone in the middle class may not be achievable" but you can bet your bottom dollar it will be achievable for everyone in the top .01%.
We truly have the best congress the wealthy can buy. And do they ever buy it. KA
16
Dear Middle Class and Senior Citizens,
The beatings will continue until morale improves.
Regards,
The Republicans
34
That't not Congress' or the President's job, looking out for the interests of the small minority of Americans who work for a living and pay 25-40% of their income in taxes. The only thing these people are investing in is their families - bums!
4
What people fail to understand is that just as with the health care bill, Congress does not care what the people affected by these bills think or how it is a raw deal for them. The name of the game is getting something, anything passed that is large so they can feel as though they accomplished something. Had it not been for Collins and Murkowski and McCain, they would have passed the health care bill for no other reason than to be able to say they passed it. Whatever is in the bill is not relevant at all. It's about winning.
This is what people voted for. Anyone who voted for these people deserves whatever they get. The rest of us have to hope that there's major change in 2018.
What happens between now and that time is something that cannot be stopped. You can yell, scream and offer alternative suggestions in this comment section and elsewhere but you need to accept the fact that no one is listening. Because they aren't.
14
I wonder i they will rise for some in the top 1%?
4
I think it is sort of unbelievable, unfathomable, that these wealthy billionaire class want a windfall in tax cuts and want the middleclass to basically pay for it. Just how arrorgant and evil are these entitled wealthy greedy beasts. Wake up working people you are about to be robbed forever.
27
It's not ok to say "well, we can't protect the entire middle class, oh well, we tried" when it's as high as 30% affected. If you want to simultaneously build a wall, step up deportations of tax paying individuals, increase spending on the military, fix crumbling infrastructure, AND cut taxes for the rich, somebody is going to be left holding the bill. Trump base: who do you think that's going to be?
13
What a scam. If the “purpose of this is to get a middle-class tax cut", all they'd need to do is cut the 15% bracket to 10% or 12% or whatever, and leave everything else the same, then everyone would get a cut. What could be simpler than that? Of course, we all knew the cuts would be tilted toward to top end, it's just remarkable that they are quite so blatant about it. Fortunately, it's so blatant it's probably DOA even in a GOP Congress.
13
Larry,
You miss the fact that the Congress is in the hands of Paul Ryan. He is a Republican mathematical genius. This is not like your ordinary kid at Bronx Science who thinks that e = 2.718281828... but also remembers from somewhere along the way that 2 + 2 = 4.
Your Paul Ryan math is much simpler than that. The Trump Plan just lowers everyody's taxes. Next question.
The entire tax plan is a sham and everyone knows it's major tax cuts for the 1%. Ryan, the policy wonk, is a side show like all the rest of the Republicans in Congress.
43
I am in the middle class. Based on what I have heard, the elimination of the deductions for real estate taxes and state and local income taxes would be larger for me than the increase in the personal deduction, so I would expect my tax burden to go up.
Republicans can whistle for my vote, because I will NEVER vote for those people.
Do the math.
Vote your interest, and the interest of those who are not 1%ers.
129
And don't forget they want to eliminate all personal exemptions, too.
2
Brady lashes into the Tax Policy Center analysis with his counter argument that it is impossible to assess the tax plan? Pure Texas reasoning.
I don't make that much, but it is impossible to see how I'm not going to pay more tax under this plan. But who knows? If the plan is impossible to evaluate, as Brady states, it may leave hope for us all. Maybe not.
2
Of course taxes for the middle and working classes will rise. Starting off with the termination of the federal estate tax, currently only taxed upon $5 and $10 million estates, which only a few thousand will benefit. Of course, Trump lied, that he would receive no benefits.
Just as the NYT noted that based on the one year of Trumps taxes that were made public, that Trump would derive millions to billions in benefits from the GOP tax plan, which will be shoved down our throats with a mere majority like they tried to do with Trumpcare.
The GOP is only wedded to inequality for the rest of us at their trough of greed in their expanding swamp. They are no less than disgusting, with every piece of legislation that they do.
As they continue, they may force the rest of us to eventually become two countries, like India and Pakistan to find fairness and equality.
17
QUANDRY: Trump will NOT benefit from the elimination of the estate tax as he will be dead; his children will reap a bundle.
Just like the election season for Trump and Republicans running for office, it is and was all vaporware with no details. Even with the sketchy details of their plans, as a middle class family the only part of the bill that would help is the increase in the standard deduction.
2
As someone in the almost the exact middle - think median - who files short form, no deductions, my husband and I will pay more in taxes if this abomination passes. But you better believe that people in the top 20% are going to get their break. Not only htat, their tax cut will often equal our yearly earnings.
Why should my middle class tax increase pay for a tax cut for the likes of Steve Mnuchin? You better believe he's going to guarantee himself a tax cut.
48
If what you say that you file a short return with no deductions is true then your statement that your taxes will rise is just ignorantly false or an intentional lie.
With the proposed rates being lowered for all taxpayers and standard deduction going up for married taxpayers you could not help but pay less taxes under the current proposal. The middle class people likely to be hurt are those who itemize their deductions and take every tax break available (those that do not file a short form). Ie state and local income tax deduction in a high tax state like NY or CA would be gone.
Everyone is entitled to an opinion but it would be nice it was informed and not a partisan rant and not contributing to the lies that already permeate the internet.
1
Thanks to the mismanagement of Connecticut government, and the subsequent departure of so many of our citizens, our house was recently appraised for sale at a commended sale price that is 2/3 of what we paid for it in 2001.
Since 2008 yearly "cost of living" increases in social security have been close to zero. Yet property taxes have risen radically, in part to make up for shortfalls from the state. This has amounted to a tremendous rise in taxes for older people who live in middle class towns.
Despite the shortfalls and increasing tax burden on those who have the least, the property tax rate on the super wealthy remains remarkably low. The rate people in extravagent Greenwich is about .11, compared to people in the riddle class towns who pay closer to .29. In impoverished Bridgeport people pay .45. How is it possible that the tax rate in Greenwich is only one quarter of the rate in Bridgeport????? This is the tax that funds our schools. It should be the same for all of us, with a break for people who are living on fixed incomes due to retirement after paying to educate our children for their entire lifetime. And the funds should be distributed equally for every child in the state, not hoarded for the so-called most affluent regions.
14
" We will all pay for these so-called "tax cuts" with reductions in services, continued deterioration of infrastructure, and loss of public investment in research and environmental protection. "
Yes we will. And that was the regressive republican plan all along. The proposed budget is the very definition of regressive: Give more to those who do not need it while you take more from those who can least afford it. And those least, even thought they are the majority, are now powerless, even the ones who voted of Trump.
14
On the flip side, 100 % of the 2% will have massive tax cuts.
The swamp it filling up quickly
16
You know, I'm not an economist or anything, but I'm pretty sure -- contrary to what Steven Mnuchin and Paul Ryan are quoted as saying -- that there IS a way to ensure that everyone in the middle class receives a tax cut: A) do not take away any deductions/exemptions currently offered; B) either raise the income thresholds for each tax bracket or lower the tax rate for each bracket. Doesn't seem so complicated there fellas...
17
Exactly. Keep the personal exemptions. Raise the standard deduction to $20,000. And that 25% rate should kick in at $50k, not at the current $37.5k.
Done.
2
Raising the tax bracket and the standard deduction will not result in an increase of 'taxes' on the poor. It may result in less of a credit
Taxes are paid to the government, not the other way around.
Still don't understand why poor people's money is more important than rich people's money. We should all pay the same amount, minus a standard deduction for basic living expenses, food, shelter, and transportation.
1
"We should all pay the same amount..." Based on the current U.S. budget and the current deficit, how many millions would one taxpayer be liable for?
2
@George. A flat tax is like libertarianism. It sounds so obvious if you just don't think about it much. I guess it would be "fair" to divide the country's expenses by the number of adult citizens and send each person a bill for their share. How would that work out? But if we tax each person the same percentage of their income, that would be fair, right? Well, if person A makes just enough to pay for a basic existence while person B has oodles of disposable income, who is really going to be affected more by the loss of a fixed percentage of their income? Progressive taxation recognizes that we need everyone to share the true burden of taxes. It is also an acknowledgement that well-off people benefit greatly from the existence of low income workers who do so much of what needs to get done. The presumption that people should suffer through a low income job only until they can move on to something more lucrative is offensive. Is their something wrong with being a home healthcare aid or doing manual labor? These are essential roles in society.
2
It's more important because there's less of it. If you had less money, every dollar you have would mean more to you. And the idea that most people hold is, society should think more of their dollars too. This is called scarcity.
2
Monetary policy should not be taken in isolation with Fiscal policy. Here in fiscal affairs, the Laffer curve is followed - whereas in monetary matters, the Phillips curve is defied - as more expansion does not (or not creating) desired inflation - so, there is every likelihood of failing Laffer curve for more growth with tax-cuts. However, some extra money could be in the hands of middle class in the form of tax cuts so that there was (some) hope of moderate inflation in the system - supporting the Phillips curve...
1
Why does anyone use the words 'tax cuts', under the budget reconciliation process, any changes have to not add to the deficit, that is, be revenue neutral. First, the GOP has assumptions of mythical growth and secondly, is the redistribution of the remaining tax burden. Lowering a marginal rate but eliminating a deduction is not a 'tax cut' but it is a massive redistribution of money to the wealthiest.
10
My wife and I chose not to have kids because the world has enough people. So naturally the couples who have kids get paid to do so.
8
Your choice is your choice, no explanation needed. The advantages and disadvantages of that choice were all known to you in advance.
Older people currently receive a larger personal exemption than younger taxpayers. Even if you double the standard deduction, by eliminating this expanded exemption for the elderly and raising the lowest tax rate from 10% to 12%, Republicans have pretty much guaranteed some retired Americans with modest incomes will pay more in taxes. Simultaneously we are supposed to watch the rich and super rich get a huge tax reduction? Lets face it. Our democracy is dead.
37
If you counted on the GOP to save democracy, you backed the wrong horse.
Sounds like the middle class is going to get what they voted for.
(i.e., we told you so)
16
Well, I'm middle class, and I definitely didn't vote for it!
5
I'm not middle class, and I will likely receive a tax cut, but I didn't vote for it either. I am sorry.
The ones who voted FOR it are Republicans. Don't blame me. I voted for her.
2
Thanks for explaining again how Republicans stand for tax breaks for the Have-Too-Much and Want-A Whole-Lot-More-Than-We-Need folks at the top and higher taxes everyone else. The GOP has long stood for GOT OUR PRICE and most of you wage-earning suckers can't afford us. The political power to avoid taxes by manipulating definitions of income for rent seekers and corporations, aka rent skimmers and scammers, is a fundamental threat to democracy. The smirk on Mnuchin's face should not go unnoticed.
8
What is the rationale for eliminating the estate tax -- other than to insure that the next generation of Trumps and their ilk get money they didn't work for tax free. The Republicans would blow up the deficit to give a bunch of grifters free money. Disgusting.
77
Not allowing the deduction of state and local taxes is nothing more than double taxation.
87
In other words, Congressman Brady, the nonpartisan Tax Policy Center has it right and you ... are not telling the truth about the actual impact of this tax plan.
12
"Pressed as to whether some may still face higher tax bills, Mr. Brady added, “I guarantee we are going to improve the lives of every American by driving down taxes and increasing paychecks.” "
Mr Brady is full of it. As it stands today, albeit devoid of all the details, my federal tax burden will increase 18%. GOP has to do better than that.
7
They're not guessing, they're "pretending not to know" or outright lying. There are at least three official US government agencies which have mathematical models of tax distribution on the US (business and individuals) by quartiles and deciles. Several more developed by third party tax policy organizations.
These have been maintained for decades, and used by previous US administrations and Congress to assess tax law changes. Within about 2% points all models show that 18% of corporate tax burden is attributable to labor. The Republican proposals. so far, all have the effect of shifting more corporate tax burden to the Middle Class tax payers, to offset tax breaks to the 1%.
19
Taxes will almost certainly increase, for some in the middle class, but experts say they will, INDEED, increase in the coming years. And, the "bottom" rate is being increased by 20%. Look at it this way. Mnuchin, and his lovely wife, want to ogle the gold at Ft. Knox, want to stand on top of it. He want US to pay for his honeymoon and his trip to Ft.Knox. What kind of person could he be? Given the BILLIONS that we should be spending on 4 national catastrophes, the rich should pay even more than they do now, if any. TAX THE RICH! It's the only way the US will pull itself out of this financial hole they have dug for us.
17
Wait a minute! Are you saying that Trump lied? Shocking, just shocking.
9
Killing the home interest deduction will reduce the value of the average American's home by at least 15%. Where I live that is a lot of wealth that's going to go up in smoke.
92
Perhaps that will make housing more affordable for those who don't buy a house for tax reasons.
5
I thought the home interest deduction wasn't going to get cut by this plan. Did that change? If I were you, I would be more worried about not being able to deduct state and local income taxes. I used to live in CA and am hoping to move back, but if state taxes are no longer deductible, I don't think that will happen.
9
If the value of your home is simply the money it can bought for than I'm in favor of driving the 'value' down even more until I can afford to buy your home.
Between eliminating the Affordable Care Act and the medical tax deductions, the message from Congress sounds simple enough, although hardly achievable: Don't get sick.
10
Actually, I think the message is something more like: Get sick and die. We don't want you.
4
Perfect trio. That will also contribute to the soundness of the Social Security fund.
If the plan includes a child care tax credit while removing medical expense deductions, why not add a medical care tax credit? The permanently disabled and those requiring long term care need to have those non-elective, significant costs covered.
4
So the tax proposal increases taxes on the already poor, raises taxes on 30% of the middle class (and doesn't meaningfully cut taxes on the rest), and gives the wealthy mega dollars more. No one has explained why the rich need more money, or just how decreasing corporate taxes will mean higher pay or more jobs, since the corporations are already sitting on piles of cash and wage rates overseas remain low. The answer is that only the the rich will get the pot of gold at the end of this rainbow.
30
No one has explained why the rich need more money?
GREED
Eliminating the state and local tax deduction will punish voters in or near big cities. We pay a 3.07% PA state income tax as well as a 3.47% non-resident Philadelphia wage tax (because we work, not live in Philly). Given that wages near cities tend to be higher, the tax bite is larger. Similarly, real estate taxes tend to be higher near cities. Eliminating one or both deductions will raise the federal income tax burden for many urban/suburban workers. For many who were brought up to minimize their mortgage, it will cut tax relief even more deeply.
9
Citizens in urban areas in general vote Democratic more than Republican so need to be punished by this administration.
10
"The analysis found that nearly 30 percent of those in the middle class could see their taxes increase as a result of changes to the deductions and exemptions many middle-class Americans rely on to lower their tax bills."
I did my own analysis and found that I would pay $1600 more a year in taxes. I am in the middle class. My main concern though is the 2.4 trillion dollar cost cited in this article. Now why are we doing this? Why can't we pay for drugs at the same level that all other OECD countries pay and save ourselves 200 billion a year and also get lower insurance premiums in return?
I cannot follow completely the logic of our government at times.
9
We will all pay for these so-called "tax cuts" with reductions in services, continued deterioration of infrastructure, and loss of public investment in research and environmental protection. The Federal Government needs sufficient revenues to continue needed programs and public investment. The private sector is simply not going to fill that void.
14
Anyone who thinks this president and this congress is going to do anything that doesn't make the rich and powerful more rich and powerful is insane. The huge tax cuts, new loopholes and giveaways to the top 1% will be obscene and will come on the backs of the middle class. The top goal of the GOP has been to steal the wealth of the middle class and give it to the rich and they have been very successful at it since 1980.
27
Stop your complaint. Someone has to pay for the rowdy family's tax cuts.
1
Sure, raise taxes on the middle class and repeal the estate tax --> so that billionaires can get even more money. We can't let this happen. https://waysandmeans.house.gov/contact/
7
The worst thing is that those who would otherwise be subject to said estate tax usually know all the maneuvers in order to avoid paying the suggested retail price.
2
I GOP were not so focused on the super wealthy, they would have crafted a tax plan that clearly favored lower and middle class tax payers. Face it, this plan is redistribution to the wealthy on its face.
16
An increase on Americans making between 150 and 300K would be a good thing, but only if the increase got much greater as you went up from there. Why are Democrat politicians not screaming for a tax code that addresses the extreme disparity of wealth in this country.
Anyone paying attention knows what the Republicans want, but if my party is to remain relevant to me they better make it clear they want the opposite.
14
Those folks were voted out of office...
1
They (Dems) have been screaming for a tax code that addresses the disparity.
Some (you?) do not listen until such things actually affect you
4
Beeze, I often heard Obama thoughtfully discussing the need for government intervention to address income disparity, but only the "left wing" of the Dem party really focuses on this issue.
Elizabeth Warren for one. Is Bernie Sanders a Democrat? We need the entire party working on this with disciplined talking point repetition with more separation from corporate America and closer connection to unions and working people.
I got out my 2016 tax returns for comparison with the proposed plan, because I expect about the same amount of income and expenses in 2017. I am retired, and my largest income amount comes from Social Security; I have some modest other income. With the proposed plan, eliminating the personal exemption, medical expenses, property tax, and state tax, I can expect that my taxes will approximately double. As the article says, not all of us in the middle class can expect any help!
43
Eliminating the deduction for out-of-pocket medical expenses would affect millions of those least able to afford the hit, retirees trying to cope with long-term care expenses among them. Unreimbursed health care expenditures, mostly for home health aides, account for nearly two-thirds of our annual budget.
When my mother-in-law, in Germany, needed long-term care for the last seven years of her life, she was eligible--without going virtually bankrupt, as is the case with Medicaid recipients here--for state-provided insurance. But, hey, I guess that counts as socialism and has to be deplored. Pfui!
15
It's ironic that GOP can't guarantee that everybody in middle class gets a tax break, but it's evident that almost everybody in the top 1% gets one from repeal of AMT and estate taxes and a loophole-ridden passthrough scheme.
There is a pretty simple solution to that, which is to keep the SALT deduction but cap it, somewhere in the range of $40K which is half the current AMT exemption. That removes the sting on most middle class professionals, especially if AMT is repealed, and makes the overall plan more progressive at the upper end. Blue state liberals can't attack that compromise.
GOP also needs to raise the passthrough rate to 28% which is the current AMT rate, and apply it uniformly to hedge fund and private equity managers' carried interest and other tax preference items like commodity straddles, REITs and MLPs, and private activity bonds. And obviously need to establish strong bona fide capital investment and multi-employee requirements for the passthrough preference.
16
I bet Mr. Mnuchin and all the other Republicans mentioned in this story will be able to make certain that the top 1% all get tax breaks from their proposed tax "reform".
69
We should stop using the term 'reform' and call it what it is going to be - a money grab for the very rich.
Let's call it the Giant Rip-Off of 2017.
16
Ludicrous! How Mnuchin gets up and claims the wealthy don't benefit is the height of this 'up is down', 'wrong is right' political climate we are in. These guys are banking on the people of this country buying the hype...again, while they write themselves a law that will enrich them annually by more than most people make in a decade. Mnuchin is worth 350 million dollars, Gary Cohn 600 million, Betsy DeVos, 5.1billion, Trump, who knows? Time was the Republican Party stood for NOT increasing the deficit. The old line was that Democrats don't believe in math and Republicans don't believe in science. Well, I guess the GOP has given up on math too.
60
Hello ? Knock Knock. Anybody home ?
Trump needs to cough up his tax returns before he, Munchkin, or his pals in congress utter one word about a tax overhaul.
Trump Base doesn't seem able to focus on what will be in this tax overhaul for them. (answer- not much, if anything.)
But don't they at least want to know what will be in it for Donald and other plutocrats ? (answer- a lot)
18
Never forget the principle number one of taxation: To pluck the duck who can not quack.
22
Why is it that anything coming out of this administration and/or the GOP controlled congress looks sloppy and half baked? You might not liked the Obama administration but at least they did their homework!
27
Well, I won't rule out that they are all Lying LIARS. Bigly.
9
Our nation crumbles and Congress refuses to provide bipartisan leadership.
"Republicans have signaled that they will try to push any tax bill through the Senate reconciliation process, which would make it immune to a Democratic filibuster."
9
They have to convince the nonpartisan $enate Parliamentarian that this $2.4 trillion giveaway to the rich is “revenue neutral” in order to use reconciliation. Never...gonna...make...it...
1
May I make a modest proposal. Those in the middle class who are negatively affected by this tax proposal should become inheritors of those in the 0.2% who will see their estate tax rescinded. This way they can make it up when the greedy rich pass on and I'm sure the Walmart and Trump children won't mind sharing, since the whole purpose of the tax cut is supposed to help the middle class, exclusively.
2
Of course a tax cut for 100% of the middle and lower classes is doable. We just have to raise taxes on those who can afford it - the wealthiest 1% who already enjoy the lowest upper tax bracket in US history, and especially on those investors who have a much lower effective tax rate thanks to the unconscionable capital gains tax. That those two groups overlap almost completely is just a happy coincidence, I'm sure.
168
Doable means that the people who make the decisions can do that and they can't. Their 'supporters' won't stand for it unless it makes the rich richer on the backs of the middle class. We all know that is going to happen.
3
The "capital gains" tax needs to be called what it is in order to avoid confusion.
It is a tax on UNEARNED income. You know, the kind you make off risking nothing other than your money, somehow? Sure, everything is a sort of risk. You could lose your money, but if everything works out you stand to make out well, and that should be your reward. But it gets better as you only have to pay 15 percent on that (if that, Myth Romney regularly pays even less), instead of the percentage you would pay if you got on your feet and went to work every day, actually doing something to earn it.
2
Wait a minute. 47% of citizens pay no Federal tax. And the tax credit (free money) was expanded to a point where it is an expectation. I know many that report lower incomes to the IRS just to keep their free money and subsidies. We've taught a whole generation that they can cheat and it's okay because others are evil rich people that don't deserve their money.
Is that the kind of citizenry that will keep this country on sound footing? It is this incessant hatred and the lies (100% of middle and lower class can get a tax cut) that allows an idiot like Trump to become President. Dems don't get it; used to, but no longer. But I guess my just saying that puts me into a 'racist' category - the NYTs mantra for anyone that questions them or their policies that they continue to push for the nation. Attacks on the South (we're all stupid racists) and promotion of CA (special edition, for $$, but still) as the ideal of what a state should look like.
ARGH!!
With a debt to GDP ratio of 103%, nobody should be talking about a tax bill that "lowers taxes for everybody".
Our tax laws need lots of reform, but that reform should be revenue neutral.
This is just the standard rich guys shell game - the real goal is major tax reductions for the 1%. The rest of us getting just enough crumbs to distract us from that fact.
22
Why are no news articles discussing this not talking about the removal of the Head of Household filing status? That hits ~ 10-20% of filers. Is there some info not being publicized that shows they're not going ahead with its removal?
9
We need numbers. What is the single, childless person earning $75k going to see with this tax bill?
What will the childless couple earning $110k household see?
"Middle class taxpayers" is a bogus term. Some people say a family earning $250k is middle class and others say they are wealthy or very well off.
14
I understand how raising the standard deduction helps those at the bottom, but earn one more dollar than that without kids and your rate is higher. I was Trump bragging that there would be a $500 elder care exemption; well, we did hospice at home for my mother and I lost a lot more income than that.I
Losing the estate tax will increase inequality. We'll be more like Europe, with a permanent underclass.
But I'm not convinced this Congress can pass anything. It's not reasonable and leaders keep making excuses. This is a bad bill for Americans; I studied economics to understand why.
10
I am one of those who would see my taxes increase. I do not make $150,000 either. Closer to $75,000 and I take the deductions for my home mortgage, my state and real estate taxes and donations to charity. The end result is far more than either the current standard deduction allows or the doubling of it that is proposed. Republicans do not care about me and do not represent any of us who do not make enough money to pay for them to stay in office.
183
I am in the same situation. Congress betrays us.
10
The Middle class has to get destroyed so that billionaires and corporations can get tax cuts. I'm sick of it. The new budget will make seniors pay more for Medicare but allegedly only the "wealthier ones".. I guess that means the ones who can stilll afford a house and gas to heat it in the winter. I'm sick,of that too. It's time corporations and billionaires paid their fair share. The Middle class is tapped out!
60
Our accountant says our taxes will go UP under this frame work while the deficit explodes. What happened to "Fiscal Responsibility" and "We Cannot Leave Our Grandchildren To Pay For Our Fiscal Irresponsibility" all for tax cuts for billionaires like Trump. My husband is a Rockefeller Republican who is now considering going independent and voting Democrat.
91
These tax proposals are from a Trumpsters who think a family can remodel their kitchen with a thousand dollars. Obviously that person hasn’t been to Home Depot to check out the cost of a refrigerator or any other appliance.
This tax cut is vague. Without real figures and a reality based assessment of how it will effect the live’s of citizens it is a waste of time.
5
Hmm, as others have pointed out... For this administration, it is no surprise that they *can* guaranty tax cuts for the ultra wealthy (e.g. Trump and his cabinet) while they cannot guaranty tax cuts for the middle class. Trump's real constituency is himself and his cronies... Trump's base can best be described as Trump's Chumps.
16
But we're gonna make sure the rich get richer!
The disinformation and propaganda campaign waged by the right, primarily through Fox, has been amazing to behold. They are masters of this craft. They continually convince middle- and lower-class americans to actively vote against their own self-interest because the Democrats are woefully incapable of combating the Republican lies.
It's astonishing.
39
So now they admit tax cuts for all in the middle class "may not be achievable"? LOL... but somehow cuts for 100% of the 1% are? And even so the deficit will explode under this sham tax reform plan.
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Trump and his cronies save millions and once again it's off the backs of the middle class. Hold your breaths for it to "trickle down" to you. So much for the little guy. So much for draining the swamp.
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But make no mistake, taxes will go down substantially for the mega-rich. This Congress is as corrupt as any have ever been. Shame on them all.
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Be afraid. Be very afraid!
Every time the Republicans have given us a tax cut since the Reagan tax cuts of the 1980s, our taxes have gone up. Sure, Regan gave us a lower rate, but then he took away the deductibility of all interest expenses. The net effect: our taxes as a percent of our total income increased. Other such "tax cuts" have had the same effects.
And now the Republicans want to somehow offset a twenty percent increase in the lowest tax bracket (currently ten percent but slated to become twelve percent) with increased standard deductions and child care deductions. Let's see the math before we buy that promise.
All the while, every tax cut since Regan's has massively benefitted the already uberwealthy while the rest of us pay more. For us, we'd welcome a modest middle class tax increase if it meant that the wealthiest suffered a little, too. Anybody wanna bet?
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And the official rate of inflation has fallen. The true cost of living, however, is a whole 'nother ballgame. And we are not winning.
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With Trump and his cronies trying to fill their larder with every conceivable tax break, reasonable Republicans and conservatives should develop a much simpler and rational tax plan.
Every working American receives an automatic $65,000 exemption which goes up with inflation. All deductions are eliminated. At $65,001 to $100,000 a 15% tax rate. From $100,001 to $200,000 a 25% tax rate. and it goes up to a 40+% for those at $1,000,000 or more. Every dollar is taxed; no more dividend exemptions except for the first $65,000. And every dollar of earnings or dividends falls under the FICA tax at a rate of 5%. The middle class ($50,000 to $100,000) gets a needed break and the tax burden will move in the direction that those who earn more pay more. Do it Washington. NOW!
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Dear Republicans: Not everyone in the middle class is a "family". I'm sure that I am not alone as a single, retired senior citizen with a pension, social security and a modest investment portfolio. With all of that, and I know that I am fortunate, I still have an adjusted gross income that is less than 6 figures. I contribute generously to charities. Loss of the personal exemption and the state and local tax deduction will raise my taxes unless the thresholds for the three proposed brackets are significantly modified. Doubling the standard deduction will not help me as my itemized deductions for mortgage interest and charitable donations will still exceed the standard deduction. I will get a tax increase and millionaires and above will get a tax cut. There is something wrong with this picture.
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Then rather than giving away your money, use it to offset your taxes. Problem solved.
I'm in a similar situation as Lynne and I do not give so generously to charities because I still pay a mortgage. Your response does not solve her concern, nor mine. This tax framework does not help single retirees.
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Thank you! We were not blessed with children, so increasing the child deduction to offset the increased rates won't help us. It is so frustrating when the government writes policies assuming that the majority of Americans are married with children.
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The Republicans will only rule out tax hikes for the top 1% - the rest of us will have to pay more to fund those
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But achievable for 100% of the 1% or 2%? Who'd have thunk it?
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Try living in California with an income of $150k/year for a family of 4. This is simply a tax and income grab for the rich.
Should never pass!
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It doesn't work in a lot of places. Let's face it. Two professionals who earn $125K per year each are comfortable, but hardly rich, either. At that income, they haven't done all that well for themselves despite having Masters' degrees because they're not Wall Street hedge fund managers.
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I think it's important for you to take a big step back from this debate and recognize the damage that your words are inflicting on this cause.
From what I can see the median income for a family of 4 in California is $75,000. Median - so half of those are below that. Half.
Yet at double the median, your comments indicate that "it just isn't possible to do so." I mean, how does everybody else do it? A family of 4 making $75,000 would certainly find a way to make ends meet if you doubled their salary to match what you're making.
If we leave the debate to sad stories, everybody will come up with one - from the bottom, all the way to the top - including those who make double the median for their cohort.
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Nonetheless, if you earn $150K a year...you are RICH.
That is 300% MORE than the average American family income (FAMILY, not individual!).
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"which did not include many details that could change the distributional impact, including an increase to the child tax credit and the potential for a higher tax rate on the richest Americans."
Yet you are comfortable quoting the Tax Policy Center number despite these numbers stemming from an analysis made without all the data. Odd.
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I don't find it odd at all. The Times is trying to provide a clearer picture of what Trump and his congressional allies are up to - because they haven't provided details beyond sweeping generalizations borrowed from political campaigns in which they tried to seduce the middle class with promises of across-the-board tax cuts. The Tax Policy Center is basing its projections on reasonable estimates about what to expect. I would much (much!) prefer to rely on those projections than what the Republicans are saying. Perhaps you didn't catch Mnuchin on the Sunday shows this past weekend - he brought obfuscation and dissembling to a whole new level; he seemed incapable of providing a simple clear answer to any question posed to him, all the while applauding the administration for its 'transparency.' A grotesque performance.
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Not odd at all. NYT's job is to report information from credible sources. Tax Policy Center is a credible organization. Its report makes clear that its findings are preliminary given the gross lack of information released by the administration. NYT reported that caveat. NYT's job is also to report claims by organizations such as the Trump administration and the GOP congress that lack credibility. It does this, at times including the caveat that there is no public information on which to justify the claims made by Republican leaders. If Phil rejects TPC's preliminary conclusions with its caveats, does he accept the administration/congressional conclusions that are woefully unsupported and spewed out with no caveats? Basically, the NYT is doing its job but the Trump administration and GOP congressional leaders are not doing theirs.
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I am glad that the NYT is starting to sound the alarm bell on this republican tax plan idea. Trump's campaign rhetoric of putting forward a tax bill that would hurt him and his entourage of entrepreneurial shenanigans was always only for laugh and giggles. This con man is the emperor without money, and if not so he would shown us his tax returns.
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