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Biggest Reform EVER passed thread

You could maybe get from 35 to 28 if you eliminated the domestic production deduction, lifo, reduce tax depreciation to straight line and remain in the ballpark of revenue-neutral (still wouldn't be there). The deductions just aren't there. A lot of the average lower than 35% effective tax rate for US income is driven by the fact that stock compensation is not fully expensed for book purposes even though the economic reality is that it's a fully expensed FMV transaction takes place.
 
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The GOP’s model family gets a tax cut in year 1 … and a tax hike in year 7

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You could maybe get from 35 to 28 if you eliminated the domestic production deduction, lifo, reduce tax depreciation to straight line and remain in the ballpark of revenue-neutral (still wouldn't be there). The deductions just aren't there. A lot of the average lower than 35% effective tax rate for US income is driven by the fact that stock compensation is not fully expensed for book purposes even though the economic reality is that it's a fully expensed FMV transaction takes place.
On the principle that people pay taxes, not corporations, one could further balance the trade-off with higher rates on capital gains or perhaps a tax on financial transactions.
 
On the principle that people pay taxes, not corporations, one could further balance the trade-off with higher rates on capital gains or perhaps a tax on financial transactions.

Or some kind of corporate VAT or consumption tax.
 
Look, I was a real life tax lawyer for a lot of years. I guess now I'm in recovery. I completely get that the complexity of the tax code and the perverse incentives therein are a drag on business. I have seen plenty of business decisions derailed or slowed or altered by tax issues. I am in support of lowering the headline corporate rate to make the US more internationally competitive (but it should be revenue neutral by trimming corporate deductions, since we know that the actual net rate paid by US corps is not that high). I am in favor of tax code simplification to free up capital for investment and to reduce tax planning drag on business decisions.

Increasing the number of middle class households who take the standard deduction instead of itemizing is great, but it will have zero impact on the real business issues that need to be addressed. And from what I've seen, this proposal just adds another layer of complexity to privately held business decisions, compounding the existing problems.

So yay Republicans, way to find a solution in search of a problem. A whole bunch of Trump voting scorp owners are going to be real disappointed in April when to their accountants tell them they can't file their taxes soon a postcard like dear leader promised.

Trump voters have accountants?
 
You don't have to completely replace the corporate income taxes with the vat you can have a hybrid system where you use both. But a corporate income tax only system does a terrible job taxing foreign companies that use the US Marketplace. And while I understand Forbes objection the truth of the matter is that those corporate income taxes are embedded in the price of goods and services that the company sells anyway. If you raise more money out of corporate activity then it's generally going to be inflationary to the price of goods and services the corporation sells. Pretty much hard to get around that. Many of these Republican border adjustment schemes were really hiding a vat within the income tax structure
 
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I suspect those would be saved even if Trump weren't president. The value of real estate is so related to the strength of the economy as a whole, or maybe I'm biased because I'm in that industry.
 
LOL. Some GOP Senators actually believe in lowering the deficit. They don't understand that's just a drum to bang when Dems are in power.
 
Briefly checking on fox—cavuto coast to coast—they are sort of panning this Pub effort. Not really simplification, not really a cut (except for corporations), some individuals and families will def pay more (to balance the corporate cut)...mainly so Pubs can claim a win (got something done—spin spin spin).

Sad
 
It's almost as if they're reaping the discontent they've sowed among their base.
 
Haven't read this all the way through yet, but here's an analysis of the plan. The third chart is the most interesting to me. Over 1/5th of the the people of the middle quintile of income actually a tax hike. Sweet middle class tax cut.

Edited to add the link, sorry.

https://itep.org/housetaxplan/



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housetaxplan-slide-4-768x432.jpg
 
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