Trump adviser 'can't guarantee' taxes won't go up for middle class

a reply to: JinMI

To the rest of your comment, of course he can't guarantee. Everything still has to go through congress.

The question wasn't about whether or not the plan will pass through congress. The question was, will there be middle class families that will see their taxes increase under Trumps plan? The answer from Cohn, he can't guarantee. That was in relation to the plan itself. Not whether he could guarantee the plan will pass congress. It's fairly clear that wasn't the question being asked.

a reply to: Southern Guardian

Fair enough and I already addressed your premise for the thread, well I highlighted what the advisor said.

The whole OP rests on the exception being the rule.

originally posted by: charlyv
One troubling section involves the reduction of itemized deductions. 3 items that are extremely important in keeping taxes down are the ability to write off home mortgage interest expense. For the new home buyer, the payments are almost 100% interest for the first years and these are typically $15 to $20k line items.

Another is educational expenses for sending your kids to school. Over $20 to $40k a year for some families. The other is excess medical expense, in which case if you are older or retired, can amount to huge sums, especially in dental implants and hospital expense. I wonder if these will be exceptions that will still be available to all of us.

In the UK, having a company car was tax deductible. To help business people, the government raised the allowance to by 15K to help reduce the amount they were spending out of their own pocket. But what happened. The car salesrooms raised their prices by the same amount. Whatever the market can afford.

originally posted by: olaru12
Any moderate tax savings will be eaten up by inflation.

Inflation was expected to cease or reverse under liberal policies which raised taxes on the middle class? Sorry, but do you understand microeconomics in any way? If you get a savings which is offset by an unrelated expense, then you've come out better off than you would have been with no savings and still dealing with the unrelated expense.

a reply to: Southern Guardian

Uh... "lower income families would get none" duh, how do you cut something currently sitting at 0%? What the hell are they looking for, cuts to medicare and Social Security taxes? Half of the country pays $0 in federal income tax under the current system.

So, "only" 25% of taxpayers itemize.
That's what? 40-50 million of them? I have a mortgage and I itemize. I guess I'm just unlucky.

I guess I'm unlucky that I don't pay AMT either.

originally posted by: charlyv
One troubling section involves the reduction of itemized deductions. 3 items that are extremely important in keeping taxes down are the ability to write off home mortgage interest expense. For the new home buyer, the payments are almost 100% interest for the first years and these are typically $15 to $20k line items.

Another is educational expenses for sending your kids to school. Over $20 to $40k a year for some families. The other is excess medical expense, in which case if you are older or retired, can amount to huge sums, especially in dental implants and hospital expense. I wonder if these will be exceptions that will still be available to all of us.

Here are some answers to your questions...

The plan outlined today includes the following proposals:

- Consolidating and reducing individual income tax rates to 12, 25, and 35 percent
- Eliminating the Alternative Minimum Tax (AMT) for both corporations and individuals
- Nearly doubling the standard deduction to $12,000 for individual and $24,000 for families
- Establishing a $500 non-child dependent credit and larger child credit
- Repealing the personal and dependent exemptions, and deductions for the blind and elderly in light of the larger standard deduction and credits.
- Repealing most itemized deductions, leaving those for mortgage interest and charitable giving
- Repealing the estate tax
- Reducing the corporate tax rate to 20 percent
- Establishing a maximum "pass-through" rate of 25 percent with unspecified protections against gaming
- Enacting full expensing for at least five years
- Moving to a territorial system for overseas earnings and imposing a one-time tax on past earnings held by U.S. businesses
- Indexing tax brackets to a more accurate measure of inflation, likely the Chained CPI
- Limiting the amount of business interest than can be deducted by C-corporations
- Repealing the deduction for domestic manufacturing (Section 199)

www.crfb.org...

Cutting taxes for high-income people, however, has long been a major priority for Republican donors.

The GOP's repeated failures to repeal the Affordable Care Act have also grated on the right's wealthiest patrons for some time.

At a conference in June, several of them reportedly threatened to withhold financial support if Trump and congressional Republicans could not find a way to cut taxes.

Earlier this month, that perspective was confirmed during a closed-door meeting where Sen. Cory Gardner of Colorado reportedly told his colleagues that "donors are furious" at the GOP for not being able to pass conservative legislation.

www.salon.com...

a reply to: Phage

I have a mortgage and I itemize. I guess I'm just unlucky.

Your sacrifice will help make America great again sir. I salute you.

a reply to: Southern Guardian

From the looks of it, I may actually pay a bit less if this goes through. Hard to say how much though.

But Trump will pay a lot less. That AMT is a biggie. Capital gains tax seems to be going down too. Middle class doesn't get much of those pieces of the tax cut pie.

So Trump's getting a giant tax cut? Is that what I'm hearing?

a reply to: Dudemo5

Is that what you want to hear?

a reply to: Deetermined

- Indexing tax brackets to a more accurate measure of inflation, likely the Chained CPI

This should seriously concern everyone, because CPI has little to no basis in reality these days. It's the main reason COL increases haven't kept up with wages.

originally posted by: JinMI
a reply to: Dudemo5

Is that what you want to hear?

Is that what you wanted to write?

originally posted by: Zanti Misfit
a reply to: Southern Guardian

Typical Entitlement Mentality there , Nothing in Life is Guaranteed , Deal with It Already .........

I agree, except for this political spin. We hire them. They work for us. We all want someone who tries very hard to do what's best for all of us. We need people who will serve us all. Not just the upper crust. If a person like that even exists anymore. And if they do, we don't seem to have sense enough to recognize them when they appear. But we've been lied to so much, it's difficult to trust anybody anymore.

originally posted by: Dudemo5

originally posted by: JinMI
a reply to: Dudemo5

Is that what you want to hear?

Is that what you wanted to write?

Clearly, and concisely.

originally posted by: Dudemo5
So Trump's getting a giant tax cut? Is that what I'm hearing?

He's saying this new tax plan will definitely NOT benefit him. Haven't we learned by now that he mostly says the opposite of what is true?

a reply to: angeldoll

He said "Believe me", isn't that good enough for you?

Of course, we have no choice but to believe him since we have no idea what his tax situation is.