Tuesday, November 07, 2017

GOP Wants to Tax Wages at Higher Rates

House Republicans on Friday quietly made changes to their far-reaching tax overhaul: Now its tax cuts would be less generous for many Americans. A day after the GOP unveiled its plan promising middle-class relief, the House's top tax-writer, Rep. Kevin Brady, R-Texas, released a revised version of the bill that would impose a new, lower-inflation "chained CPI" adjustment for tax brackets immediately instead of in 2023. That means more income would be taxed at higher rates over time -- and less generous tax cuts for individuals and families. The change, posted on the website of the Ways and Means Committee, reduces the value of the tax cuts for ordinary Americans by $89 billion over 10 years compared with the legislation released with fanfare Thursday. As wages rise, middle-class taxpayers would have more of their income taxed at the 25 percent rate instead of at 12 percent, for instance.

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The change to the plan frees up money for Brady, the committee's chairman, to use to address concerns by lawmakers when changing the bill further next week. The Ways and Means panel begins work on Monday, a final bill-writing process expected to take four days.

Brady on Friday called it "a challenge of a lifetime legislatively."

President Trump and the Republicans are driving to push through a major tax-cutting bill this year to secure a legislative accomplishment, following their stinging failure to overturn and replace the Obama health care law. The Republicans, facing increasing pressure to produce a marquee legislative victory before next year's elections, are promoting their tax plan as a spark for economic growth and a boon to the stressed middle class.

Under the plan, the bulk of the tax cuts go to businesses instead of individuals, according to a budget watchdog group. The Washington-based Committee for a Responsible Federal Budget says corporations and other businesses get tax cuts of about $1 trillion, with the rest for individuals and people inheriting multimillion-dollar estates.

Comments


With this latest quiet revision, the tax cut bill currently looks to benefit corporations and the wealthy at the expense of the middle class.

It doesn't surprise me that the effects of the tax cut bill are moving in the direction they are, the Republicans have always been about giving tax cuts to corporations and the 1%.

What does surprise me is seeing Speaker Ryan joking about the tax cut bill by saying that you can file your taxes on a postcard, as that says little about how much the taxes have been cut for the middle class.

Of course, Speaker Ryan wants to avoid talking about how much taxes are being cut for the middle class, since that is not the purpose of the bill.

#1 | Posted by LampLighter at 2017-11-06 10:40 AM

What does surprise me is seeing Speaker Ryan joking about the tax cut bill by saying that you can file your taxes on a postcard, as that says little about how much the taxes have been cut for the middle class.

He has to sell that turd somehow.

He could have a postcard tax return that said "How much did you earn in wages? Good, now send in 50%" and it would still meet his definition.

#2 | Posted by 726 at 2017-11-06 12:18 PM


@#2 ... He has to sell that turd somehow. ...

As further evidence of how the tax cut really isn't for the middle class... I've read that the language of the bill has the tax cuts for the middle class expiring after five years, while the tax cuts for the corporations are permanent.

#3 | Posted by LampLighter at 2017-11-06 12:35 PM

while the tax cuts for the corporations are permanent.

And the cuts for the 1% too. But hey, Boaz is going to need that estate tax repeal someday, somehow, some way.

#4 | Posted by 726 at 2017-11-06 01:21 PM

Not only are they misrepresenting this bill to most individual tax payers, they also fail to deliver for small business too.

The typical small business, whether it's a sole proprietorship, partnership or limited liability company, doesn't pay taxes itself, but its owners do as individuals.
And already about 86% of these so-called pass-through businesses pay no more than 25% under the individual code, the new top rate proposed for small-business income in the tax bill unveiled this week. So they won't get the legislation's much-hyped small-business tax cut.
www.latimes.com

#5 | Posted by johnny_hotsauce at 2017-11-06 03:01 PM

the tax cut bill currently looks to benefit corporations and the wealthy at the expense of the middle class.

"Success!!!"
~Republican morons.

#6 | Posted by ClownShack at 2017-11-06 03:05 PM

Not hearing much reporting about this really considering the importance of it to the nation over the next decade and beyond. This bill will, in many ways, determine our future. This bill should be crushed and the politicians pushing it should be completely discredited as servants of the people. They are scum who do the bidding of the billionaires trying to turn America into Russia. Our oligarchs are jealous of the Russian oligarchs and want to have the same amount of power and influence that oligarchs have in Russia. Even you conservatives, is that how you want our future to be? Wake the hell up dummies!

#7 | Posted by danni at 2017-11-07 08:59 AM

This is why Trump loves the uneducated.

#8 | Posted by Sully at 2017-11-07 09:11 AM

The GOP has only one agenda, class warfare against workers for the 1%. That's not what Lincoln stood for, but that's all they've stood for in my lifetime.

#9 | Posted by bayviking at 2017-11-07 09:42 AM

They can't tax the rich because they make campaign contributions. Poor people don't have much money to pay taxes with. Who does that leave to pay for that big Pentagon budget?

#10 | Posted by SomebodyElse at 2017-11-07 09:44 AM

Higher taxes if you work, lower taxes if you inherit your money and do nothing. Fantastic job, Republicans.

#11 | Posted by Sycophant at 2017-11-07 10:01 AM


 

@#9 With this latest quiet revision, the tax cut bill currently looks to benefit corporations and the wealthy at the expense of the middle class. ...

One analysis I heard this morning said that the deduction for state and local taxes will remain in place for real estate developers, while the deduction is being removed for the middle class.

I guess they left that provision in there so that Pres Trump will be more eager to sign it.

It is really odd, once you dig into the actual text of the bill, it doesn't seem to correspond to what is being said about the bill by its sponsors.

#12 | Posted by LampLighter at 2017-11-07 10:05 AM

"It is really odd, once you dig into the actual text of the bill, it doesn't seem to correspond to what is being said about the bill by its sponsors."

Really odd?!? It's SOP.

These folks are lying through their teeth. I thought I'd seen the most tilted-toward-the-rich tax codes with the two Cheney, er, Dubya tax codes. I was dead wrong. This is mind-bogglingly tilted toward the richest of the rich:

Corporate rate slashed 42%.
Estate Tax eliminated.
Repatriation rates which are a) staggering dollar amounts, b) at a ridiculously low rate (12%), and c) not expensed in the bill, even the difference between 12% and the new corporate rate of 20%.

Also, no touching of GRATS, proving it's only the middle class who is getting shafted.

#13 | Posted by Danforth at 2017-11-07 11:00 AM

Mysteriously, not a single Trump supporter or Republican has posted in this thread. Can I take that to mean they approve of these tax cuts for billionaires? I guess so. Apparently these idiots still believe in trickle down economics, that's just so sad that anyone can still be that dumb.

#14 | Posted by danni at 2017-11-07 11:10 AM

"With this latest quiet revision, the tax cut bill currently looks to benefit corporations and the wealthy at the expense of the middle class. "

Well, yeah...this revision, and everything else in it.

#15 | Posted by Danforth at 2017-11-07 11:11 AM

Mysteriously, not a single Trump supporter or Republican has posted in this thread.

#14 | POSTED BY DANNI

There are hardly any of them left on this site.

#16 | Posted by Whatsleft at 2017-11-07 11:43 AM

Mysteriously, not a single Trump supporter or Republican has posted in this thread.
#14 | POSTED BY DANNI
There are hardly any of them left on this site.
#16 | POSTED BY WHATSLEFT

Defending Trump's insanity takes a lot out of them.

#17 | Posted by Sycophant at 2017-11-07 12:06 PM

It's about time. Taxes need to rise across the board and a new structure needs to be put into place. But get rid of that stupid bracket system. Why have a fine line between 99k and 100k (as an example) and just raise tax rates as you move up in salary. The two caveats are that low income peoples' taxes do not raise until they make a specific amount per year and the rich get a cap so that they don't end up paying 100% every year because they make so much.

But, this country needs to have taxes raised significantly if it wants to be able to afford all of the things the Democrats have been doing. I'm fine with universal health care, I'm just not fine doing it with the current tax rate. Dems think they can just spend money without any repercussions but all the countries they LOVE to use as examples all have significantly higher taxes (and please don't be one of those people who have never actually traveled to another country and found out first hand about tax rates...the Internet "facts" are highly skewed depending on who is reporting them). In Amsterdam, a worker at a souvenir shop is taxed 60% of their wages (I bet you can understand how shocked I was with my first stub).

In the 60s when America experienced phenomenal growth, taxes were significantly higher than they are today. This isn't causation without precedence. This is common sense. To pay for the people, you have to bring in more money. Dems can't just spend without being responsible and Reps just need to stop fighting the inevitability of socializing many things as Americans become more dependent on the government.

#18 | Posted by humtake at 2017-11-07 12:17 PM

"Dems think they can just spend money without any repercussions but all the countries they LOVE to use as examples all have significantly higher taxes (and please don't be one of those people who have never actually traveled to another country and found out first hand about tax rates...the Internet "facts" are highly skewed depending on who is reporting them). In Amsterdam, a worker at a souvenir shop is taxed 60% of their wages (I bet you can understand how shocked I was with my first stub)."

Yeah, let's raise taxes on the poor and cut them for the rich. Democrats have raised taxes, Obama raised the top rates to 39%, capital gains to 25% and added 3% on top of that for Obamacare. Republicans get elected and, every time, start slashing taxes and whining about the debt at the same damn time It's amazing watching y'all talk out of both sides of your mouths at the same time.
Us Democrats have been telly y'all that forever! Reaganomics is killing America.

#19 | Posted by danni at 2017-11-07 12:20 PM

It's about time. Taxes need to rise across the board and a new structure needs to be put into place.
#18 | POSTED BY HUMTAKE

But that's not the plan...

The plan is to give a huge tax cut to the rich.

#20 | Posted by Sycophant at 2017-11-07 01:57 PM

"The two caveats are that low income peoples' taxes do not raise until they make a specific amount per year..."

They don't. Because of the standard deduction and the personal exemption (currently worth about $10,250 per person), the first $20,500 for a couple isn't subject to income tax.

"...and the rich get a cap so that they don't end up paying 100% every year because they make so much."

The cap is the 39.6% top marginal tax rate. No one ends up paying 100% every year. Or any year, for that matter.

"Why have a fine line between 99k and 100k (as an example) and just raise tax rates as you move up in salary."

Well for one reason, there is no fine line, and we just raise tax rates as you move up in salary. IOW, only the amount OVER the threshold is taxed at the higher rate.

#21 | Posted by Danforth at 2017-11-08 01:52 AM

The GOP Tax Plan Will Destroy Graduate Education

www.forbes.com

#22 | Posted by Gal_Tuesday at 2017-11-08 07:04 AM

Donny Doll Hands loves the poorly educated...his tax plan codifies it.

#23 | Posted by 726 at 2017-11-08 11:16 AM

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