Republicans to propose keeping top tax rate for very wealthy, nodding to concerns

[DonViejo]

Source: The Washington Post



By Damian Paletta and Mike DeBonis October 31 at 3:50 PM

House Republican leaders on Wednesday will propose keeping the top income tax rate for high levels of personal income, four people briefed on the planning said, a last-minute adjustment to their sweeping plan they hope to push into law by the end of the year.

The details came during a briefing House Speaker Paul Ryan (R - Wis.) had Tuesday afternoon with conservative activists. House Republicans had planned to collapse the seven existing income tax brackets into three brackets, lowering the top rate from 39.6 percent to 35 percent.

But after weeks of internal deliberations, they decided to retain the 39.6 percent rate for very high levels of income, the four people who attended the meeting said. The tax rate could be applied to income at levels such as $750,000 or $1 million, though the details remained in flux.

The move signals Republicans are eager to avoid the impression their plan is biased to rewarding the very rich — and pull along the votes of moderate Republicans concerned about the plan’s impact on inequality.


Read more: https://www.washingtonpost.com/business/economy/2017/10/31/2cd1deda-be5f-11e7-959c-fe2b598d8c00_story.html

[byronius]

1. 'Just a modicum, a pinch less evil -- yaaas, that will fool everyone nicely.'

[BigmanPigman]

2. Not allowing prop tax as a write off for the Middle class

is still an unpopular item for the pro-GOP voters. Their popularity and support with their constituents in that "middle class" bracket will drop. Are they willing to sell out that group?

[SoCalMusicLover]

6. Last I Heard They Were Keeping Property Tax Deduction

[BigmanPigman]

7. There was an article posted on DU yesterday and

from what I gathered it seems likely but I do not trust them. They always say one thing and then do the opposite.
https://www.washingtonpost.com/news/business/wp/2017/10/30/house-gop-tax-plan-would-now-allow-americans-to-deduct-property-taxes/

[Bernardo de La Paz]

3. Few of the 1% pay top tax rate. Most less than middle except for the Alternative Minimum Tax

Is the Alternative Minimum preserved or is it destroyed the way Trump wants it destroyed? (for him and his family's benefit)

[Massacure]

8. I would imagine the AMT would be scrapped.

The point of the Alternative Minimum Tax was to prevent people from writing off so many expenses that they pay little to no tax. If there are no deductions or credits for someone to claim, there is no need to have a second set of rules in case the tax calculated in the first one is too low.

If you are curious what the AMT rates are, they are 26% above $53,900/$84,500 for singles/couples or 20% above $40,000 for business with gross receipts of $7,500,000 over the last three years. There are a couple rules I'm ignoring that set a 28% rate for singles/couples as well as phasing out the the $53,900 and $84,500 exemption, but at a bare minimum the rates cannot fall below what I stated in my first sentence in this paragraph.

[bagelsforbreakfast]

4. last I heard they were caving on the property tax part...n/m

[onit2day]

5. If that's so then they will retain the estate tax.

which helps to prevent dynasties from forming since it only goes into effect on the 1st dollar over $5mil for singles or $11mil for couples. Getting $11 million tax free should satisfy.

[7962]

9. Its all BS anyway. They could raise it to 49% and it still wouldn't raise enough money

The problem is, there aren't enough "rich" people to tax enough to make a difference.
However, there is plenty of income that isn't taxed at all.
We need a sales tax. I know most here hate that idea, but its the only way to really raise serious money
The debt is 20 trillion. It will be 30 trillion, then 40. How long before people start to notice