The new GOP tax plan may be a step in the right direction, but falls short of what it should have done. Unfortunately, compromises had to be made to get a few Democrats on board. As a result of those compromises, for some people, their taxes will not go down, or they will increase. But, overall, the Republican tax bill is at least a step in the right direction and may help the economy with a much needed boost that, for one, will allow most taxpayers the ability to keep more of what they earn - if it passes. Ultimately, the right answer to our taxation quagmire is to eliminate direct taxation and return to the method we used prior to the 16th Amendment.
After reviewing the text of the GOP proposed tax reform package the first thing the reader notices is a simplification of the various tax rates. However, they remain progressive, a kind of stepped rate system also called for by Karl Marx in his Ten Planks of the Communist Manifesto.
If this bill passes, the tax rates would change to 12 percent, 25 percent, 35 percent and 39.6 percent. For married couples, the 25 percent rate starts at $90,000, the 35 percent rate starts at $260,000 and the top rate starts at $1 million. The bill will also double the standard deduction to $12,000 for individuals and $24,000 for families.
The bill would also lower the Corporate Tax Rate, which is huge, because such a lowering of that rate, which is the highest in the world, would make businesses more competitive, and encourage growth and expansion. . . which results in lower prices and an increase in jobs. The corporate rate, if this bill passes, would lower to 20 percent. Rates for small business would also be reduced, dropping by 15 percentage points, down to 25 percent.
If this bill passes, the tax rates would change to 12 percent, 25 percent, 35 percent and 39.6 percent. For married couples, the 25 percent rate starts at $90,000, the 35 percent rate starts at $260,000 and the top rate starts at $1 million. The bill will also double the standard deduction to $12,000 for individuals and $24,000 for families.
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| from Business Insider http://www.businessinsider.com/tax-brackets-trump-tax-plan-chart-2017-9 |
A five year break would also be given to some new endeavors, better enabling new investments in the free market.
Mercantilism, or what some call "Crony Capitalism", is also targeted, and through the new plan special interests deductions are largely going bye bye.
The new bill also repeals the Alternative Minimum Tax, child tax credit goes to $1600 from $1000 plus additional $300 credit for parents and non-child dependents, estate tax exemption will be doubled and eventually phased out after five years, home mortgage interest deduction is preserved but limited to $500,000 for new mortgages, and the Charitable Tax Deduction is preserved.
While this will likely encourage economic growth and open the door for job creation, I am disappointed that all persons of all tax brackets are not going to enjoy a reduction in taxes. Why should there be anyone left out just because they make more than the average citizen?
Why not a single flat tax rate across the board? Remember, the progressive tax rate is a communist creation.
Ultimately, the real problem is spending, anyway. When we reduce spending back down to constitutional levels, which would likely reduce federal spending to below 5% of GDP, there would be no need for the income tax, and at that time the 16th Amendment should be repealed.
Wouldn't it be great to be able to say "goodbye" to the IRS?
-- Political Pistachio Conservative News and Commentary
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