So Trump wants to “simplify” our tax code by changing 7 tax brackets to 3 — with HIS own Income Tax going “Down.” I do income taxes (seasonally) and I’m here to tell you, his plan is all smoke and mirrors!
Besides, where’s the “Patriotism” in paying income taxes?
This is where America (was) at its’ greatest — After WWII. Corporations gladly paid a higher tax (70%) on earnings because they knew reinvesting in our Government is what made America Strong!
By the 1960s we could afford to fund the Great Space Race without impacting our Federal budget. Earning $100/week was the inflated, adjusted equivalent of earning $100K today, so what happened?
Ronald Reagan! The Actor, whose own pretax earnings from Hollywood was in the 50% range and he hated it. His proposed tax cuts put our country in its First-Trillion in U.S. Debt. Today, Republicans outspend Democrats 3-to-1. They are the false prophets of lies and Fiscal Trickery, publically stating Tax Cuts and Budget Cuts will save America Millions. Yet, when the OMB (Office of Management Budget) takes a glimpse into our books, we wound up further in debt than when we started whenever a Republican is in control.
Who does the current (and proposed future) Tax Plan hurt most? Single, lower-middle-class Individuals earning $35K to $80K, as well as the upper-middle-class earners of $100K to $175K, as they also pay the highest Federal income tax, even after itemizing.
Other flaws in the current tax system include the poorest of the poor. Why should their tax rate go up? Even a 2% increase (from 10% to Trump’s 12%) in tax means the tax burden on the poor is too great to bear. The additional problem is the next 15% to 25% tax bracket. The extra 10% between the two can more than double someone’s tax burden for being as little as $50 over the threshold.
Example: Anything below $37,950 = 15%. Tax burden: $5,693.
Anything above $38,000 = 25%. Tax burden: $9,500, a $ difference of $3,807 or 40% for earning just $50 more! That’s certainly NOT Fair.
The income tax rate between $37,950 to $91,900, currently stands at 25%: This group actually pays the most in income tax. Their current Federal income tax burden is between $9,488 and $22,975 — That’s a lot of tax.
Another example: A person earning $350K/year comes out to $29K/month — The average median income for 90% of Americans. Those earning $350K, and the top 10% of earners actually pay Zero (0) in taxes. Why? Because their income is so high, they have more than enough disposable income to allocate towards next years’ income tax return. They also have more to “write-off” to lower their tax burden.
This chart is MY version of a Fair and Simple Tax Plan. The fields on the left is the Current IRS Tax Bracket(s). The fields in the Middle are Trump’s Proposed Tax Rate(s). The fields to the Right are what I believe would be Fair and Equitable to 80% of U.S. Tax Payers:
*The proposed plan does not specify income thresholds. In addition, income thresholds for current rates are for single filers. Specific thresholds were not included in the President’s plan. Brackets are combined based on the House Rep Tax Policy Center full GOP Tax Plan.
I don’t know about you, but I Don’t think a person making less than $200K should pay the same amount of income tax as someone earning over $400K, not to mention the $2,000 difference between someone who pays 33% vs. 35%. Anyone earning above $35 Million, their Tax Rate should be 39.6%. They can afford it, and I’m sure they’ll still find some tax loophole to exploit. Corporations should also be subjected to the same tax rate on earnings over $35 Million.
I also believe the Tax Rates on the right will allow Americans to keep more money in their pocket as they’ll be less apt to cheat on their income taxes. I also believe all Corporate Welfare Subsidies should be eliminated, as it was once believed that slashing Corporate Income Taxes would stimulate job growth, but it didn’t. Corporations took the money and ran AND outsourced jobs to avoid paying any income taxes on the salaries of third-world laborers without a Social Security Number to allocate FICA Tax payments.
BTW: FICA is the tax deducted from all payroll employees to support Medicare Costs and Social Security Retirement Benefits. Besides, how was President Clinton able to achieve Tax Surpluses with Balanced Budgets? Raising taxes on the Rich!
Trump wants to eliminate the Estate Tax which is inherited assets you receive when a parent or relative dies. Those (assets) will be taxed based upon their Current Market Value. If Trump were to transfer the bulk of his assets to his son, Barron Trump upon his death, the Estate (assets left by Trump) will be tax free, and, Trump’s family will continue to earn money on those assets as part of the Estate tax-free — Saving The Trump family over four (4) Billion Dollars in Estate Taxes!
So when the President says, ‘the current tax plan is “Not Good” for him’ he’s clearly fibbing!
I hope this article makes it to Washington D.C.
This is what “Real” Tax Reform looks like that’s Fair to EVERYONE based on earnings!
— — — — — — — — — — — — — — — — — — — — — — — — — — — — -