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Tax Plan (Trump & House GOP) Updated in September - Few Notice
Posted on 1/15/17 at 8:37 am
Posted on 1/15/17 at 8:37 am
A slight tweak to Trump's plan (maybe more than slight), and with respct to pass through, now only applying to corporation that "want to retain profits." Some other areas n the personal side as well.
But the latest House GOP plan does still reference a cap on pass through at 25%. No mention of retained earnings. So it seems someplace between 15% and 25% for pass through is likely.
Impact on federal revenue (depending on which source, and whether it is "fake news") as high as $2.4T.
Best realistic guess of actual impact is a hybrid between the House plan, and Trump plan (latest variation) and would project growth, is between $200B and $350B.
I would assume a lot of people on here would be interested in the personal rates, increased personal deduction and pass through portions, but when I've brought this up before, few seem interested.
This really started in August, and more in September. One guy on here (a Libertarian) brought up the pass through changes, but based on his posts two things were clear, he was trying to troll, and based on his references to FTE's, he had no idea what he was talking about.
Anyway, I would think a bunch of people will be going from a personal rate of 28% to 25%, with less taxable income being due to a variety of things.
Personally, I don't understand why single people continue to be treated unfairly with respect to taxable income and rate structure, but there must be some logic to it as everyone seems to continue tax proposals that do this.
No links to Tax Policy Center and other places that only seem to make projections that are accurate after the fact. This is all based on comments from Trump Cabinet hearings, updates to Trump's web-site, the House GOP plan, WSJ, Forbes etc.
But the latest House GOP plan does still reference a cap on pass through at 25%. No mention of retained earnings. So it seems someplace between 15% and 25% for pass through is likely.
Impact on federal revenue (depending on which source, and whether it is "fake news") as high as $2.4T.
Best realistic guess of actual impact is a hybrid between the House plan, and Trump plan (latest variation) and would project growth, is between $200B and $350B.
I would assume a lot of people on here would be interested in the personal rates, increased personal deduction and pass through portions, but when I've brought this up before, few seem interested.
This really started in August, and more in September. One guy on here (a Libertarian) brought up the pass through changes, but based on his posts two things were clear, he was trying to troll, and based on his references to FTE's, he had no idea what he was talking about.
Anyway, I would think a bunch of people will be going from a personal rate of 28% to 25%, with less taxable income being due to a variety of things.
Personally, I don't understand why single people continue to be treated unfairly with respect to taxable income and rate structure, but there must be some logic to it as everyone seems to continue tax proposals that do this.
No links to Tax Policy Center and other places that only seem to make projections that are accurate after the fact. This is all based on comments from Trump Cabinet hearings, updates to Trump's web-site, the House GOP plan, WSJ, Forbes etc.
This post was edited on 1/15/17 at 8:40 am
6
Posted on 1/15/17 at 8:43 am to Iowa Golfer
You're just out front a little, IG; it'll all start to boil when Congressional debate on Tax Reform begins. A lot of specifics to be nailed down. People are watching; but book it...nothing works without that Wall being built. That is the elephant in the room.
Posted on 1/15/17 at 8:50 am to Iowa Golfer
I would absolutely love love love a 25% tax rate.
Posted on 1/15/17 at 8:54 am to RCDfan1950
Yes, some on here are watching. I'd personally replace your usage of the word wall with spending instead, but I get your point.
It will be fun watching how uninformed most are when the real debate starts.
But at this point given tax legislation only needs a simple majority in the Senate, I think it's safe to say it's going to be some hybrid House/Trump plan.
The other thing I find interesting is how close (relatively) those two plans are. I never understood the melt down by people that opposed Trump and his plan, and yet loved Rubio's plan. Which wasn't really his plan.
Paul Ryan is not an unimportant person in this, and it seems he made his decision to cooperate (to the extent possible) with Trump already.
The pass through portion, depending on how it gets done, or if it gets done, is going to be Trump's legacy. In my opinion this is the catalyst for his success.
What I mean is a tax cut is a tax cut, but this is more targeted to persons who will actually attempt to create additional jobs, and are more prone to reinvest, rather than just save.
It will be fun watching how uninformed most are when the real debate starts.
But at this point given tax legislation only needs a simple majority in the Senate, I think it's safe to say it's going to be some hybrid House/Trump plan.
The other thing I find interesting is how close (relatively) those two plans are. I never understood the melt down by people that opposed Trump and his plan, and yet loved Rubio's plan. Which wasn't really his plan.
Paul Ryan is not an unimportant person in this, and it seems he made his decision to cooperate (to the extent possible) with Trump already.
The pass through portion, depending on how it gets done, or if it gets done, is going to be Trump's legacy. In my opinion this is the catalyst for his success.
What I mean is a tax cut is a tax cut, but this is more targeted to persons who will actually attempt to create additional jobs, and are more prone to reinvest, rather than just save.
Posted on 1/15/17 at 10:07 am to Iowa Golfer
How will this affect my wife's S Corp? She recently bought the Vet practice where she was working. Will this be a net positive for us or no change?
Posted on 1/15/17 at 10:19 am to LSUSUPERSTAR
As it stands now, this income will flow through to a new rate of either 15% (Trump's plan) or 25% (House Plan), rather than whatever personal tax rate you are in.
The unknown is what Trump means by corporations that retain earnings, as there are only rare cases that an s-corp can retain earnings.
No one has adequately explained the second paragraph to me yet. Not even the so called "experts."
The unknown is what Trump means by corporations that retain earnings, as there are only rare cases that an s-corp can retain earnings.
No one has adequately explained the second paragraph to me yet. Not even the so called "experts."
Posted on 1/15/17 at 10:24 am to Iowa Golfer
How long will it be for any new tax plan to be in effect? Next tax cycle?
Posted on 1/15/17 at 10:26 am to Iowa Golfer
quote:
Impact on federal revenue (depending on which source, and whether it is "fake news") as high as $2.4T.
Corporate tax revenue runs just north of $400B/yr.
Unless the $2.4T is extrapolated over 20yrs, that number makes no sense ... even as hyperbole.
Posted on 1/15/17 at 10:44 am to Iowa Golfer
quote:
Personally, I don't understand why single people continue to be treated unfairly with respect to taxable income and rate structure
Tell me about it.
Posted on 1/15/17 at 10:46 am to cajunangelle
quote:
How long will it be for any new tax plan to be in effect? Next tax cycle?
I would expect new employee withholding by July 1st, and the new tax legislation would need to be retroactive 1/1/2017.
Posted on 1/15/17 at 10:54 am to NC_Tigah
quote:
Corporate tax revenue runs just north of $400B/yr. Unless the $2.4T is extrapolated over 20yrs, that number makes no sense ... even as hyperbole.
This is an aggregated figure for decreased tax revenue over the next 10 years for the entire proposed Trump plan, not just corporate taxes. This figure is taken from Tax Institute, and other sources I consider dubious. This is not my thinking. Ironically these are the same sources others on herre like to cite. You just made it clear that sometimes the smartest guys in the room are just cutting and pasting.
The second figure I cited was a combination from business publications, some former government officials, other tax experts that have a better history than the commonly cited sources. It more fairly factors in increased economic growth, and the resulting increased tax revenue. Some folks at the University of Chicago, etc.
I also didn't make clear from my post that this is based on Trump's plan as we know it, this is not a hybrid of a Trump/House plan. That hybrid would obviously not have as dramatic an impact on either decreased tax revenue and/or increased economic activity.
Posted on 1/15/17 at 11:09 am to Iowa Golfer
quote:Okay. That makes more sense. Assuming a litany of one-sided assumptions, scope of the entire plan at least puts it within realm of possibility.
This is an aggregated figure for decreased tax revenue over the next 10 years for the entire proposed Trump plan, not just corporate taxes.
Posted on 1/15/17 at 11:12 am to Iowa Golfer
Sorry, the downvote was accidental.
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