(11-02-2017 04:50 PM)Hou_Lawyer Wrote: [ -> ]https://www.wsj.com/articles/what-the-re...1509629815
http://www.dailymail.co.uk/news/article-...m-GOP.html
Well, seems like if you're upper-middle class with kids then you're getting the shaft. Combined $260k (married, filing jointly) is now at 35% (Old plan - up to $416k was 33%). Property tax is capped at $10k, mortgage interest reduced in half, no deducting local taxes.
This seems like a win for the poor and very wealthy (repeal of AMT, etc..).
While you say that the AMT is being repealed, essentially the AMT is being cemented into the framework for everyone with the reduction of mortgage interest issues and no deduction of local taxes.
I wouldnt say AMT is being repealed, it is being changed from the exception to the rule to the rule, considering that the AMT said you paid the larger of, and 999 times out of 1000 the the 'larger of' was the AMT formulation in almost all the blue states for anyone that owed taxes at the end.
Here's how I would do it:
1) 15% payroll tax (7.5% employee, 7.5% employer), with no wage/salary cap,
2) 15% flat tax on all business and investment income (corporations. partnerships, LLCs, proprietorships, dividends, interest income, capital gains),
3) 15% consumption tax, and
4) No individual income tax.
I would add 5% (2.5% employer, 2.5% employee) to go to a retirement account (super 401k) to augment social security.
That produces enough to balance the budget, do French Bismarck universal private health care, and provide a guaranteed minimum income floor for everyone based on Milton Friedman's negative income tax or the Boortz/Linder prebate/prefund. And the payroll tax plus a couple of minor tweaks solves social security's long-term problem.
Now you would have a more comprehensive safety net at the bottom and a more tax-efficient package to offer investors at the top. The economy should boom with that. And statistically, you'd see much less income and wealth inequality.
Wait for the squawk to come out of Maryland, Massachusetts, New York, Oregon, Washington state, and California for the knife to mortgage interest deduction and local taxes.
Huge ouchie for residents of those huge home price, large income tax states.
(11-03-2017 09:56 AM)tanqtonic Wrote: [ -> ]Wait for the squawk to come out of Maryland, Massachusetts, New York, Oregon, Washington state, and California for the knife to mortgage interest deduction and local taxes.
Huge ouchie for residents of those huge home price, large income tax states.
Bottom line is, the Democrats are just like everybody else. They want to pay the least amount of tax they can.