Economy

Details of the "Big Six" Tax Framework

Details of the

Politico piled on: "Trump defies GOP over tax cuts for the rich".

They have once again rolled out a tax plan that is basically the same as all their previous tax plans.

This week, headlines blared warnings such as the one published by USA Today: "Trump's tax plan could actually benefit wealthy people like him".

Wolff: There would be lower rates for incorporated businesses, for non-incorporated business and for individuals.

This is a key concern for the retail industry, which holds a unique position regarding both workers and the corporate tax rate. "The framework takes positive steps to address other business taxes in an effort to increase simplicity, efficiency, transparency, compliance and global competitiveness".

"Our tax code helps grow your paychecks and standard of living along with it", he explained. Anybody who studies taxes knows that they are not complicated because of the rates-you look those up in a table after you've done the hard part of wrestling with deductions and exclusions.

"Also, current provisions in the tax code that help livestock producers maintain economically viable businesses and support the success of future generations of farmers and ranchers must be preserved". But adding further loopholes for the rich and big corporations does exacerbate the code's complexity and unfairness. However, personal services conducted through a pass-through entity would continue to be taxed at the individual rate. The first thing to note about this is that there is no small business tax code.

While I strongly disagree with a number of the points in Wednesday's proposed tax outline, I will not miss an opportunity to be a strong voice for working families and small businesses in my district.

Brady then explained that the tax reform blueprint would collapse the current framework's seven tax brackets into three and create income tax rates of 12, 25, and 35 percent. The highest tax bracket would drop from 39.5% to 35%, with the two other brackets being 12% and 25%. But by cutting the top income tax bracket, eliminating the alternative minimum tax (AMT), and giving preferential tax rates to some pass-through businesses, the plan that Republicans offered today fails that promise. Accordingly, if budget reconciliation is used, it may be necessary (as with the tax cuts under the Bush Administration), to make the tax reform legislation temporary. In the jargon, this is change is called "territorial taxation". The industry is also one of the nation's highest tax-paying industries, with an average effective tax rate of 36.4 percent when both federal and state taxes are included. The guiding principles are that the tax code should be simpler, easier to understand for individual tax filers and it should make this country a more desirable place for corporations to do business, bringing back those companies that have fled these shores for more competitive environments. Republicans claim to have delivered relief to the middle-class by doubling the standard deduction (letting them hand-wave about "zero-tax brackets").

Not all deductions will be eliminated if the framework is adopted, however.



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