Trump Tax Cuts

jimntx

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Jun 28, 2003
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Just FYI...just heard a staunch Republican financial analyst on one of the morning talk shows analyzing the Trump tax cuts. 80% of the total tax cut goes to the top 10% in income. Of that 80%, 50% goes to the top 1% in income. 3 tax brackets (IIRC) 33%, 25%, 15%. Those in the 15% bracket get a flat $300 tax cut.

I'm shocked. Shocked, I tell you. Round up the usual suspects.
 
Just FYI...just heard a staunch Republican financial analyst on one of the morning talk shows analyzing the Trump tax cuts. 80% of the total tax cut goes to the top 10% in income. Of that 80%, 50% goes to the top 1% in income. 3 tax brackets (IIRC) 33%, 25%, 15%. Those in the 15% bracket get a flat $300 tax cut.

I'm shocked. Shocked, I tell you. Round up the usual suspects.

http://www.taxpolicycenter.org/publications/analysis-donald-trumps-revised-tax-plan/full

Yes Jim. It is not good for the middle class unless you buy into the supply side (AKA Trickle-Down) economics theory. The full report linked above is an exhaustive analysis of the plan.
 
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Just FYI...just heard a staunch Republican financial analyst on one of the morning talk shows analyzing the Trump tax cuts. 80% of the total tax cut goes to the top 10% in income. Of that 80%, 50% goes to the top 1% in income. 3 tax brackets (IIRC) 33%, 25%, 15%. Those in the 15% bracket get a flat $300 tax cut.

I'm shocked. Shocked, I tell you. Round up the usual suspects.
Did they say what percentage of their taxes for the 15% bracket that $300 represents?
 
Seatacus, the 15% bracket is broader than I would have thought. I found an online calculator that tells you the tax bracket (current brackets of which there are 7; so, may be meaninngless as far as the Trump tax cuts.) Here's the link...https://www.nerdwallet.com/blog/taxes/income-taxes/federal-income-tax-brackets/

I tried different salary levels and got this spread...

Income.....Bracket....Fed Tax........Tax cuts as % of taxes...............Fed. Tax as %-age of income
$15,000......15%.......$1786.................16.98......................................................12
$25,000......15%.......$3286...................9.12......................................................13
$35000.......15%.......$4789...................6.26......................................................14
$40,000......25%.......$5771.................17.32 (flat $1000 for this bracket.........14

Notes;
1. Website did not say whether income was gross or net taxable.
2. I assume that Fed. Tax assumes standard deductions.
3 The higher you go in a bracket the less a flat payment (i.e, $300) reduces ones taxes as a %-age.
4. $40,000 is at the bottom of the 25% bracket; so the flat $1000 payment to that bracket would mean more at the bottom of the bracket than at the top.
5. Repeat these figures are based on current IRS tax brackets. Under Trump supposed to be reduced to 3; so each bracket wil be broader, I'm sure.

Time for flat tax for everyone with minimum deductions.
 
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We have had a similar policy implemented 4 years ago in Kansas. Art Laugher himself said it was going to be a "shot of adrenaline to the heart of the Kansas economy". It hasn't kicked in yet. Net job loss and revenues missed so often the governors office just quits reporting on it. Should bode really well for the entire country.

When I hear trickle down, I think of an old man with prostate problems...when the flow stops, what's left "trickles down" his leg...must as these tax cuts will trickle down to the rest of the economy.
 
Time for flat tax for everyone with minimum deductions.

Jimntx, thanks for posting that explanation. I agree it is probably more complicated than that but it helps. Thats what I was trying to figure out if a $300 tax cut which may seem small to some might actually be meaningful to a low income person.

I think tax reform is needed badly. Do you think the wealthy would pay less with a flat tax?
 
No, the Evil Rich would not pay less with a flat tax. Last time I checked 20% of $1,000,000 is a lot more than 20% of $50,000!
 
Once we get these tax cuts, which would result in an immediate reduction in income (while current obligations remain the same and will take some to roll back - just at the promised increases in spendning will be slightly delayed...so how long will it take for these cuts to trickle down into the economy and start reducing the debt that was so important to you all for the past 8 years?
 
They'll be offset by the drastic reductions at EPA, EDU, DOE plus all the people that said they would leave if Trump was elected.

Obama brought in record taxes, so there should be ample debt reduction under way already, wouldn't you say?
 
They'll be offset by the drastic reductions at EPA, EDU, DOE plus all the people that said they would leave if Trump was elected.

Obama brought in record taxes, so there should be ample debt reduction under way already, wouldn't you say?

That sounds GREAT in theory. But they are going to take some time to roll back...PLUS...Trump promised to increase defense spending....he promised to send back illegals...he promised to build a wall. These are going to be increased costs and the "rollback" of everything that has kept America from sinking to the level of a third world country may only offset these increased costs. So once again...how long before all the trickle down starts to reduce that debt that has worried the right since Obama said "so help me God"? Extra credit for guessing a date where the debt is BELOW the level it is the day Trump takes office.