‘THE ART OF THE DEAL’: Donald Trump’s ‘Tax Plan’ That Cuts Highest Individual Tax Bracket 37.5% (40% To 25%), Corporate Tax Bracket 57.1% (35% To 15%), And Those Making Less Than $25,000 Per Annum (To 0% Because Trump Would Get The Least Tax From America’s Poor). So If The Top & The Bottom Of America’s Economic Pyramid Pay Less, Who Is Going To Pay MORE? Now, Kiddies, Who Is Omitted From Trump’s Nefariousness And Who Gets Squeezed In The Middle? Answer: YOU MIDDLECLASS FOLKS Must Make Up The Difference, That’s Who Does! It’s Known As REVENUE NEUTRALITY* (See Excerpt)! If Everybody Else BENEFITS, WE THE PEOPLE Must SUFFER & MAKE UP THE DIFFERENCE*!

 

THE GROUNDRULES

 


http://taxfoundation.org/article/revenue-neutrality-taxing-peter-give-tax-cuts-paul

 

Revenue Neutrality: Taxing Peter to Give

Tax Cuts to Paul?

 

June 21, 2005

By Chris Atkins

 

When President Bush created his Advisory Panel on Federal Tax Reform, he required that any proposal crafted by these experts must be “revenue neutral” – meaning, the new tax system must raise the same amount of tax revenue as the old system.

 

Considering the size of the federal deficit and his plan to reform Social Security, this is an understandable goal. But, this restriction opens the door to many bad tax policies, where politically powerful groups will get lower taxes that have to be made up by raising other people’s taxes — robbing Peter to pay Paul. As we’ll see, this type of redistributionist reform plan is very popular in the states – especially among Republican Governors, who want credit for reforming their tax systems without violating their pledge not to “raise taxes.”

 

We should start from the premise that a good tax code, whether at the federal or state level, distributes the tax burden evenly throughout the economy, leaving all redistributionist policies to the spending side. The tax code should simply be a means of raising sufficient monies to fund government programs, not a tool for social engineering or political patronage. Thus, the goal of tax reform is to make the tax code simple, fair, and economically efficient by getting rid of all the special tax breaks and applying the lowest possible tax rate on the widest possible tax base. In other words, “plucking the goose as to obtain the largest possible amount of feathers with the smallest amount of hissing” as Jean Baptiste Colbert wrote some 250 years ago.

 

Unfortunately, our federal and state tax codes are so far from this ideal that true tax reform will require shifting the tax burden considerably, creating lots of winners and losers. That’s why it’s so politically difficult, but the rewards in economic prosperity are worth the pain. And the pain in this case would distribute the tax burden in a more economically efficient way, allow the private economy to create jobs more easily, boost earnings, and promote savings and investment.

 

Sadly, many states are actually moving away from this ideal with proposals that shift the tax burden to politically unpopular constituents such as smokers or “big business.”

 

For example, the Texas House of Representatives recently passed a bill that would cut local property taxes but increase state sales and corporate taxes so as to make the plan revenue neutral. The problem, they say, is that property taxes are too high. That may well be true, but raising taxes on consumers and businesses does not right the wrong.

 

Indiana lawmakers pulled the same trick a few years ago, raising the state sales tax to provide local property tax relief. This is not tax reform (there’s another word for it: redistribution) and it merely shifts the tax burden from property owners to consumers and businesses.

 

Kentucky Governor Ernie Fletcher recently signed a major piece of tax legislation that repealed the state’s corporate license tax, reduced the tax rates on personal and corporate income, and enacted a new low-income tax credit. Sounds good so far. But to make the plan revenue neutral, he also raised taxes on cigarettes and other tobacco products, and made a host of changes to the corporate income tax law that amount to a tax hike. These new measures actually make Kentucky less attractive to business investment. From an accounting perspective, the plan was “revenue neutral.” As a reform plan, however, it did little to address the complexity or efficiency of Kentucky’s tax system.

 

Governor Bob Taft in Ohio is pushing his version of tax reform. Taft’s plan, contained in Ohio House Bill 1 and Senate Bill 1, would lower personal income taxes, eliminate some business taxes, raise the state sales tax rate, institute a new commercial activity tax on business gross receipts, and raise a host of state excise taxes. While it’s admirable that Taft wants to make the state’s tax code more “competitive”, the insistence on revenue neutrality will be counterproductive to the Governor’s goal.

 

The Kentucky and Ohio plans illustrate one of the worst aspects of so-called state tax reform: the shift from broad-based to narrow-based taxes. Both Fletcher and Taft’s plans lower income taxes while raising excise taxes on things like cigarettes and alcohol. Do Fletcher and Taft really think it is prudent to make the state’s education and health spending dependent on the sale of Marlboros and six packs?

 

One can hope that tax reform at the federal level will be different. If recent history is any indication, however, we best not get our hopes up. The 1986 tax reform, even with all its benefits, had many disastrous side effects for American business, all of which resulted from an insistence on revenue neutrality. If President Bush and the Congress want to truly reform the tax code, they should avoid the temptation to use revenue neutrality as an excuse to redistribute the tax burden among Americans.

 

Tax Topic 

Federal Taxes,

State Tax and Spending Policy,

All States,

Tax Reform

 

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http://taxfoundation.org/article/revenue-neutrality-taxing-peter-give-tax-cuts-paul

 

 

TRUMP’S TROJAN HORSE

 


http://taxfoundation.org/blog/donald-trump-s-tax-plan-will-not-be-revenue-neutral-under-any-circumstances

 

Donald Trump’s Tax Plan Will Not Be Revenue-Neutral Under Any Circumstances

 

September 29, 2015

By Alan Cole

 

In an op-ed in today’s Wall Street Journal, presidential candidate Donald J. Trump outlined some of the major benefits of his tax plan. In particular, the plan has some substantial rate reductions for all Americans. It also includes some revenue-raising provisions, such as taxing carried interest at ordinary income rates.

 

I describe the plan in detail in the analysis posted here. By my estimates, Mr. Trump’s plan, under the assumption that aggregate production and incomes don’t change as a result of the plan, reduces revenues to the treasury by $11.98 trillion. Allowing for the increased incentives to work and invest (and therefore, higher aggregate economic production) our Taxes and Growth model estimates the plan to reduce revenues by $10.20 trillion instead.

 

As you can imagine, then, I was puzzled by this statement in Mr. Trump’s piece: “With moderate growth, this plan will be revenue-neutral.”

 

I do not believe this to be true under any scenario remotely resembling Mr. Trump’s plan.

 

Mr. Trump is a popular candidate, and $11.98 trillion is a very large number, so I believe I owe my readers a longer explanation than I would give otherwise. To that end, a table of rates under current law and under the Trump plan may be illustrative in showing where I’m coming from.

 

Tabacco: Did you NOTICE WHO IS MISSING HERE?

Rates Under Current Law and Under Donald Trump’s Tax Plan

 

Current Law

Trump Plan

Top Marginal Individual Rate

39.6%

25%

Marginal Income Tax Rate for a Couple Earning $45,000

10% to 15%

0%

Corporate Income Tax

35%

15%

Top Marginal Rate on Pass-Through Businesses

39.6%

15%

 

All four of these differences with current law are extremely large tax cuts. For example, the top marginal individual rate is currently paid by a lot of people who earn a lot of money. If a star actor is paid $10 million for a movie, Mr. Trump’s plan would collect about $1.4 million less from that actor. Over our country’s vast array of highly-compensated employees, this adds up very quickly.

 

Also important are the individual rate cuts farther down the bracket structure. While middle-class Americans have much less money to tax, they are numerous; even a small reduction in rates at the lower end of the scale could apply to nearly a hundred million households. It is worth remembering that the 0% rate on the first $50,000 of income doesn’t just apply to taxpayers earning under that amount. It applies to all taxpayers. Lowering the bottom bracket delivers a benefit to low- and high-income taxpayers alike.

 

The corporate income tax rate is reduced twenty percentage points. The corporate income tax is the federal government’s third largest source of revenue, behind only the individual income tax and the payroll tax.

 

Finally, a perhaps-overlooked but extremely important tax cut in the plan is the reduction in rates on pass-through businesses. Pass-through businesses are a large and growing share of all business in the U.S., and the rate reduction on these is very large. Consider that the top rate under the Trump plan is less than two fifths of what it is under current law. A highly productive pass-through business (such as, for example, some of the businesses owned by Mr. Trump) would see its tax bill fall by more than half.

 

Looking at these rates, collectively, note that Mr. Trump is frequently cutting rates in half, and sometimes cutting them by even more than that. Taken together, these rate reductions are enough—by my estimates—to reduce tax collections from about 18 percent of GDP to about 12 percent. Under rates as low as these, economic growth—moderate or otherwise—cannot restore federal revenues to current-law levels.

 

Tax cuts can do a great deal of good; each of the provisions I outlined above could help a lot of people lead better lives. However, the reductions in federal revenue need to be acknowledged, and likely mitigated through substantial cuts in spending, in order to make this plan feasible. I hope that my outline of these four key provisions explains adequately why I believe the Trump plan reduces revenue by so much.

 

Tax Topic 

Federal Taxes,

Taxes and Growth

 

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http://taxfoundation.org/blog/donald-trump-s-tax-plan-will-not-be-revenue-neutral-under-any-circumstances

 

 

Tabacco: Why should you NOT trust Donald Trump in DC or Atlantic City?

1-   He is a Billionaire, and if elected President, he will work to ensure the Billionaire Class thrives – no one can serve 2 Masters!

2-   He is a Republican! When is the last time a Republican President actually did anything for the Middleclass except as crumbs while Have-Mores ate Cake!

3-   Trump is an Autocrat! He will do what he wants, when he wants, where he wants, why he wants and how he wants. You don’t need Tabacco to tell you that! If you have seen him perform on TV, you already know.

4-   Trump doesn’t give out Details, just Propaganda! Even Obama, who used to give out Details, is totally untrustworthy on TPP (Trans-Pacific Partnership), TARP Loan Repayments to Fed, Charter Schools, obsessive persecution of Whistleblowers and Israeli Nuclear Program and non-Signatory of Nuclear Non-Proliferation Treaty (NPT). So we know we cannot trust Donald Trump, who keeps Details SECRET just like the Bush-Cheney Administration did!

5-   The necessity of having a ‘Successful’ businessman in the White House is Unproven and probably Unnecessary, but Trump has filed for Corporate Bankruptcy 4 times in 18-years. Where’s the Success in his Curriculum Vitae!

6-   Trump is a womanizer (married more than once), demeans women and thinks women are inferior because of their Gender. Again you really don’t need me to point this out!

7-   Trump is a bigot on so many levels!

8-   Trump is truly a very dangerous man to permit access to that Red Button, which could begin WWIII and the End of Days. I personally am dubious about the ‘Anti-Christ’, but if there is an Anti-Christ, Donald Trump is the most likely Candidate!

9-   If you consider pulling the Lever for Donald Trump, stop and consider Adolf Hitler as a Comparable!

10-                There is such a thing as ‘Being Too Strong, Too Opinionated, Too Imperious, Too Tough and Too Paternalistic!’

11-                Some of you laugh at Donald just as some laughed at Hitler. Neither of those Despots is funny, but both were/are Dangerous! You don’t need a funny mustache to be a World Tyrant!

12-                Trump does NOT understand the Office of President. A President is not in the business of Maximizing Corporate or National Profits! A President cannot Fire Congressmen, the Supreme Court or Protestors! A President must be a Negotiator, which includes finding Common Ground with Democrats and Independents as well as Tea Partyers! Can you even imagine a ‘President Trump’ negotiating in Good Faith with anyone!

13-                I would not want to be at Ground Zero when President Trump comments on Angela Merkel’s face or the eyes of the Chinese President’s wife!

14-                If ‘President Trump’ would Cap the Tax Rate at 25% for Have-Mores, you can rest assured that the Middleclass Rate would be as close to 24% as is unreasonably possible to accommodate this Regressive Taxationist’s true goal!

15-                As vain as Hitler ever was (and Napoleon and Alexander and Caesar and Nero)!

16-                Even Sony didn’t get away with insulting Kim Jong-un of North Korea. I’m sure that a ‘President Trump’ would find a multitude of ways to insult that Nuclear Head-of-State!

 


https://www.bing.com/search?q=north+korean+leader+kim+jong+un&pc=MOZI&form=MOZSBR

                           

You will forgive me for not republishing the URL for this tome. If you want to purchase it, you will have to look it up for yourself!

-

ADDENDUM:

 

After publishing, I watched PBS News Hour. Directed by PBS, I went to their website to find the following Chart of GOPer Tax Plans. I must say that it is rather confusing to me. My information says Trump Caps Individual Tax Rate for Have-Mores at 25%. But This Chart Caps Income > $477,450 at 35% in Trump’s Plan. Perhaps you can make more sense out of this than Tabacco can. In any event, I republish this Chart for your perusal. Better late than never, I guess!


http://www.pbs.org/newshour/rundown/gop-tax-plans-one-chart/

-

All these ‘Tax Plans’ are UNWORKABLE & tend towards REGRESSIVENESS! The Reason they are ALL UNWORKABLE is because REVENUE NEUTRALITY IS TOTALLY IGNORED except in those instances where Republicans are SQUEEZING BLOOD OUT OF THE POOR!

 

Of course when you are running for the Republican Nomination, you can make all sorts of promises, which would have to be seriously AMENDED, if not redacted, once you actually Win and submit your Tax Plan to Congress.

 

Bush’s Plan brings in less Tax Money than the Current System: Under $87,500 and Over $242,451 Incomes. REVENUE NEUTRALITY is obliterated! N/A

 

Paul’s Plan is a REGRESSIVE FLAT TAX for everyone over $50,000. You already know that Flat Tax is an Abomination the less you make! And that 14.5% Rate is les than HALF of what it would have to be to adhere to REVENUE NEUTRALITY. N/A

 

Rubio’s Plan DUMPS ON THE POOR and CRADLES THE SUPER-RICH! Sounds just like a Republican to me! At least he doesn’t obviously ignore Revenue Neutrality! N/A

 

Santorum’s Plan DOUBLES TAX RATE for $22,601-$31,050 Range! I wonder what he has against those folks! And he expects those making less than $12,600 to pay 20% in Taxes? Let’s call Santorum’s Plan what it is: REGRESSIVE TAXATION, which Coddles the Rich even more and BLEEDS THE POOR & MIDDLECLASS DRY!

 

From Santorum’s Plan, you can plainly see what happens if you Eradicate the Graduated Income Tax and replace it with a FLAT TAX! The more you make, the more you make out like a Bandito! If you are Poverty-Stricken, Santorum squeezes BLOOD out of your TURNIPS! N/A

 

Of course TRUMP PRETENDS he can MAKE EVERYBODY A WINNER! He’s the BIGGEST LIAR OF ALL OF THEM! N/A

 

According to THIS CHART, EVERYBODY WINS – THAT IS IF YOU MAKE MORE THAN $477,450! Under at least one of these Plans, Everybody under $477,450 either LOSES or breaks EVEN! That’s how we know Bush, Paul, Rubio, Santorum and Trump are ALL FULL OF $HIT!


Tabacco: I consider myself both a funnel and a filter. I funnel information, not readily available on the Mass Media, which is ignored and/or suppressed. I filter out the irrelevancies and trivialities to save both the time and effort of my Readers and bring consternation to the enemies of Truth & Fairness! When you read Tabacco, if you don’t learn something NEW, I’ve wasted your time.

 

 

If Tabacco is talking about a subject that nobody else is discussing, it means that subject is more, not less important, and the Powers-That-Be are deliberately avoiding that Issue. To presume otherwise completely defeats my purpose in blogging.

 

 

Tabacco is not a blogger, who thinks; I am a Thinker, who blogs. Speaking Truth to Power!

 

In 1981′s ‘Body Heat’, Kathleen Turner said, “Knowledge is power”.


T.A.B.A.C.C.O.  (Truth About Business And Congressional Crimes Organization) – Think Tank For Other 95% Of World: WTP = We The People

 

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Anyone may Comment here, but if you want your Comment published, you must obey the TABACCO RULES as stipulated in:

 

TABACCO’S RULES OF ENGAGEMENT! Most Comments Here Don’t Get Published. This Post Is Not Aimed At Those Charlatans; It is Intended To Edify My Veto Stance To The Intellectually Honest Readers Among You.

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4 Responses to ‘THE ART OF THE DEAL’: Donald Trump’s ‘Tax Plan’ That Cuts Highest Individual Tax Bracket 37.5% (40% To 25%), Corporate Tax Bracket 57.1% (35% To 15%), And Those Making Less Than $25,000 Per Annum (To 0% Because Trump Would Get The Least Tax From America’s Poor). So If The Top & The Bottom Of America’s Economic Pyramid Pay Less, Who Is Going To Pay MORE? Now, Kiddies, Who Is Omitted From Trump’s Nefariousness And Who Gets Squeezed In The Middle? Answer: YOU MIDDLECLASS FOLKS Must Make Up The Difference, That’s Who Does! It’s Known As REVENUE NEUTRALITY* (See Excerpt)! If Everybody Else BENEFITS, WE THE PEOPLE Must SUFFER & MAKE UP THE DIFFERENCE*!

  1. admin says:

    TABACCO’S VARIATION!

    Artemis Ward & Will Rogers are both credited with the quote, “It isn’t what we don’t know that gives us trouble, it’s what we know that ain’t so”.

    Tabacco offers this Variation on that Theme:

    It isn’t what Politicians legislate that gives us trouble, it’s what they hide in that Legislation that we can’t see!

    Tabacco

  2. admin says:

    SAGE ADVICE!

    You may have heard this before, but a father was advising his daughter, who was about to travel abroad where English is not the primary language.

    The father said, “If a man asks you a question in a language you do not understand, the safest reply is ‘NO!’”

    That advice cannot be surpassed when Republican Politicians (most of whom are Lawyers) are proposing to change the Tax Laws, legislate new FTAs or alter some other American Institution such as Medicare, Social Security or Public Education.

    The safest thing for the American Voter to say is, “NO!”

    Tabacco

  3. admin says:

    TABACCO FIGURES OUT WAYS TRUMP’S TAX PLAN CAN WORK!

    There is One and ONLY ONE WAY to make it work: CUT ENTITLEMENTS TO THE BONE! In order to REDUCE EVERYBODY’S TAXES, Donald has got to get very CREATIVE!

    Cut or Privatize Medicare*
    Cut or Privatize Social Security*
    Privatize All Public Education
    Privatize All Federal Public Works Projects*
    Cut Fannie Mae & Freddie Mac*
    Sell all Federal Government Buildings*
    Sell NASA* to OPEC
    Fire* Most Government Employees (Applies to All Programs With *)
    Forget About Reinstating Bush’s Giveaway To Churches (Faith-Based Initiatives)*

    Cut War/Military Expenditures Drastically (Now you know Donald ain’t doing that!)
    End Government Giveaways to Foreign Countries such as Israel (Get Real!)
    Sell Nuclear Weapons Stockpile to ISIS, al Qaeda & Muslim Countries (Don’t put it past the Donald!)

    OR – Donald could just BORROW MORE MONEY FROM THE RED CHINESE AND DOUBLE OR TRIPLE THE CURRENT NATIONAL DEBT! After all, Donald won’t have to pay the Principal/Interest because Donald is CUTTING HIS OWN TAXES! Your Children And Grandchildren will have to payoff the National Debt – Donald won’t need their Votes, and he’ll be dead by then anyway!

    President Donald Trump, “Wow, if I had known it was this Easy, I would have become President a long, long time ago!”

    Published by Tabacco

    PS If any Republican wins the Election, Sarah Palin will be named US Ambassador to Russia, and her home will be designated as the US Embassy. That ought to save a few Buck$

  4. admin says:

    PAUL BEGALA ON CNN RE 2 TYPES OF POLITICIANS:
    (Transcribed) Re Kevin McCarthy, nominal GOP House Speaker to replace Boehner

    “Well he’s going to try to be (different); he may have to be. He’s going to be a Prisoner of the most extreme elements of his Party. I guess because the Holy Father is here, I’ve been thinking a lot about this.

    There’s 2 kinds of Political Leaders just like there’s 2 kinds of Religious Leaders: those, who hunt down Heretics, and those, who seek out Converts!

    The successful Political Leaders of my lifetime – Ronald Reagan, Bill Clinton, George W. Bush, Barack Obama – all of them sought out Converts! They all took Voters, who were not Pure Republicans or Pure Democrats, and brought them into the fold.

    The Republicans now are turning toward ‘Hunting Down HERETICS’! Even John Boehner – my goodness – John Boehner’s not Republican enough for them! This is not the way to build a Majority in a large and diverse country!

    Transcribed by Tabacco

    PS Aside to Paul Begala: Don’t give the GOP good advice, Paul! First, the Tea Party fraction of the Republican Party won’t listen, and we don’t want them running America into the ground! God, in His wisdom, created the Tea Party to SINK THE GOP! Don’t stand in God’s way, Paul, let sleeping dogs lie!

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