Tax Reform Discussion
Dear Friends & Neighbors,
(Please click on red links & note magenta)
Many of our readers have been asking questions and expressed concerns about Trump Administration’s tax plan. So, allow me to share with you some of the details of this plan, below (from both perspectives, please click on red links):
- Trump Announces Tax Plan (September 27, 2017)
- President Donald J. Trump Supports Tax Reform for Hardworking Americans (October 11, 2017 press release)
Below is the Trump’s tax reform plan unveiled by Treasury Secretary Steve Mnuchin, National Economic Director Gary Cohn, in April of 2017, below:
- 3 income tax brackets: 12%, 25%, 35%
- double the standard deduction
- cut corporation tax rate from 35% to 15%
- repeal alternative minimum tax
- repeal 3.8% Obamacare tax
- repeal death/estate tax
I agree, it is good to simplify the tax structure and lower the tax rate, but it is not a good idea to reduce the amount for American workers to save in 401 (k) retirement accounts. Furthermore, repealing the AMT (Alternative Minimum Tax) would benefit the wealthy tremendously. In doing so, it creates a system that would increase the tax liability of the poor and middle class while decreases the tax liability of the wealthy.
An argument of how Trump’s tax plan could exacerbate inequality, below:
Elizabeth Warren brilliantly explains the rich vs. poor American justice system, below:
Below, you will find the debate between Bernie Sanders and Ted Cruz on The GOP Tax Plan:
During the debate Cruz compared this GOP tax plan to the JFK’s tax cut in 1964. Keep in mind that when JFK cut taxes under Revenue Act of 1964, the maximum tax rate was 91% and the decrease was down to 70%. So Cruz’s analogy is not appropriate, considering the current maximum U.S. federal tax rate is only 39.6%. It is as though comparing a 100 lb person losing 2 lbs vs. 500 lb person losing 2 lbs.
It is interesting to note: During the debate, an audience member from Denmark attested to the success or satisfaction of those under socialized medicine in Europe.
I believe that Ted Cruz repeatedly misrepresented the position of Bernie Sanders, misleading the general public. Bernie Sanders is proposing: under sensible structure or policy, it is possible and more effective for Americans to have: free pre-school childcare, free college education, and medicare for all, by decreasing the military budget (according to Stockholm International Peace Research Institute, U.S. currently has a military budget that is more than the sum of the next eight nations’ military budgets combined).
More remains to be seen, heard, debated and modified, as further discussions on the topic of GOP Tax Plan courses through the public, the House, and the Senate. Time to do your research and to contact your Congress-persons!
Further updates at: House Republican Tax Bill, Tax Cuts and Job Acts, Unveiled on Nov. 2, 2017
Gathered, written, and posted by Windermere Sun-Susan Sun Nunamaker
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