Trump tax plan mini review

Repealing a new 3.8 percent tax that wasn't there before Obamacare isn't a "freebie" for the rich.

Also...the vast majority of corporations aren't owned by "rich people"

Why am I so horny after reading that review?

Because we just don't stop winning!!!

The first 2 made question the author, the third and fourth sealed it. No clue why people think it's a good idea to demonize millions of job creators. Or do they not realize most "evil business owners" aren't super rich and are their neighbors. So much hateful ignorance makes me sick.

Going to do a comparison for a low income family making $50,000/yr as a married couple between Obama's existing tax plan and Trump's new proposed tax plan.

Under Obama's existing tax plan:

Standard deduction = $12,600 - leaves $37,400 taxed (progressively)

1. $0-$18,550 @ 10% = $18,550 x .10 = $1,855 ($37,400-$18,550 = $18,850)

2. $18,551-$75,300 @ 15% = $18,850 x .15 = $2,828

Total tax paid = $4,683 (about 9.4% overall tax rate)



Under Trump's newly proposed plan (assuming he's using the brackets he proposed originally during his campaign):

Standard deduction = $24,000 - leaves $26,000 taxed (progressively)

1. $0-$75,000 @ 10% = $26,000 x .10 = $2,600

Total tax paid = $2,600 (about 5.2% overall tax rate)

That's a big tax cut (-$2,083). Nearly a 45% reduction and around $174/month for a typical low income family making $50k/yr.


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Now let's look at a middle class family making $150,000/yr as a married couple.

Under Obama's existing tax plan:

Standard deduction = $12,600 - leaves $137,400 taxed (progressively)

1. $0-$18,550 @ 10% = $18,550 x .10 = $1,855 ($137,400-$18,550 = $118,850)

2. $18,551-$75,300 @ 15% = $56,749 x .15 = $8,512 ($118,850-$56,749 = $62,101)

3. $75,301-$151,900 @ 25% = $62,101 x .25 = $15,525

Total tax paid = $25,892 (about 17.3% overall tax rate)



Under Trump's newly proposed plan (assuming he's using the brackets he proposed originally during his campaign):

Standard deduction = $24,000 - leaves $126,000 taxed (progressively)

1. $0-$75,000 @ 10% = $75,000 x .10 = $7,500 ($126,000-$75,000 = $51,000)

2. $75,001-$225,000 @ 25% = $51,000 x .25 = $12,750

Total tax paid = $20,250 (about 13.5% overall tax rate)

That's a pretty significant tax cut (-$5,642). Nearly a 22% reduction and around $470/month for a typical middle class family making $150k/yr.


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Now let's look at a family making $500,000/yr as a married couple.

Under Obama's existing tax plan:

Standard deduction = $12,600 - leaves $487,400 taxed (progressively)

1. $0-$18,550 @ 10% = $18,550 x .10 = $1,855 ($487,400-$18,550 = $468,850)

2. $18,551-$75,300 @ 15% = $56,749 x .15 = $8,512 ($468,850-$56,749 = $412,101)

3. $75,301-$151,900 @ 25% = $76,599 x .25 = $19,150 ($412,101-$76,599 = $335,502)

4. $151,901-$231,450 @ 28% = $79,549 x .28 = $22,274 ($335,502-$79,549 = $255,953)

5. $231,451-$413,350 @ 33% = $181,899 x .33 = $60,027 ($255,953-$181,899 = $74,054)

6. $413,351-$466,950 @ 35% = $53,599 x .35 = $18,760 ($74,054-$53,599 = $20,455)

7. $466,951+ @ 39.6% = $20,455 x .396 = $8,100

Total tax paid = $138,678 (about 27.7% overall tax rate)



Under Trump's newly proposed plan (assuming he's using the brackets he proposed originally during his campaign):

Standard deduction = $24,000 - leaves $476,000 taxed (progressively)

1. $0-$75,000 @ 10% = $75,000 x .10 = $7,500 ($476,000-$75,000 = $401,000)

2. $75,001-$225,000 @ 25% = $149,999 x .25 = $37,500 ($401,000-$149,999 = $251,001)

3. $225,001+ @ 35% = $251,001 x .35 = $87,850

Total tax paid = $132,850 (about 26.6% overall tax rate)

That's a pretty minor tax cut (-$5,828). About 4% reduction in taxes paid and an overall 1.1% difference between the two plans for the wealthy.



But of course the Left will spin this to make it sound like the lower and middle class are getting tax hikes while the wealthy are getting tax cuts. Just watch.

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Or do they not realize most "evil business owners" aren't super rich and are their neighbors. So much hateful ignorance makes me sick.

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Amen to that.

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I find it offensive dying is a taxable event.

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It's a moral obscenity that you have to pay the government to die. Don't people feel dirty saying "sorry for your loss but you have to pay up here because he's dead", how could you not feel empathy for that?

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whoever wrote this knows absolutely nothing about pass through entities. 85% of businesses are pass throughs such as partnerships, S-Corps and LLCs. Reducing the tax rate on them is fricking awesome for job creation and wage increases for the middle class.

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If this were put in place, I could increase my employee count by 50%.

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9: Repeal a 3.8% tax on net investment income
Probably not the most aligned tax, but still another freebie for the rich.

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I find it funny that you have zero clue about this issue. None. You dont even know what the ACA net investment tax even applies to, let alone know the income threshold before it is even applied.

Removing this tax will create jobs and increase wages for the middle class.

In fact, every tax cut for businesses will create jobs and increase wages for the middle class.

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11: No infrastructure spending
Good, top down infrastructure is usually a bunch of wasted money.

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Not true at all. The Eisenhower infrastructure bill was the linchpin for John Deere to launch its construction equipment line in 1959. Today it's one of the biggest globally. A good bill could mean a whole lot for the industry.