Republican Tax Scam 2017Dec 2019: After 2 Years, Trump Tax Change has Failed to Deliver on Republican's PromisesIt's 2020 and now we see that the Bill was riddled with so many LOOP HOLES that big Corporations have been able to lobby to shift hundreds of billions of dollars to overseas tax havens, ensuring that huge sums of corporate profits remain out of reach ! https://www.nytimes.com/2019/12/30/business/trump-tax-cuts-beat-gilti.html Here is the deliberately confusing -- take from here
to give there -- smoke and mirrors.
For all taxpayers in 2027, a substantial portion — about
30 percent — will end up with higher taxes:
So 56 million taxpayers will be paying more in 2027 ! Change in, (average per income category), Taxes 2019- 2027
- All Taxpayers:
Inflation Rate MeasurePrevious law: The IRS uses the Consumer Price Index for urban consumers to adjust tax bracket thresholds and other tax provisions for inflation. That includes such provisions as the standard deduction, the personal exemption, earned income tax credit and the alternative minimum tax, as the Tax Policy Center explains. New law: The IRS would switch to an inflation index known as the chained CPI. As we have written, chained CPI is considered a more accurate measure, but rises somewhat more slowly than the traditional CPI. That would mean bracket thresholds and tax credits, for example, would rise more slowly. That could have the effect over time of pushing more people into higher tax brackets and reducing the purchasing power of tax credits. Capital Gains Tax Rate Capital gains are the profits realized from the sale of assets such as stocks or real estate.Previous law: The profits on the sale of assets held for more than one year are eligible for a tax break. The long-term capital gains tax rates are 0, 15, and 20 percent for most taxpayers. If your ordinary tax rate is already less than 15 percent, you could qualify for the zero percent long-term capital gains rate. For high-income taxpayers, the capital gains rate could save as much as 19.6 percent off the ordinary income rate.” New law: No changes. Estate TaxPrevious law: A top rate of 40 percent applies in 2017 to estates valued at more than $5.49 million (nearly $11 million for couples). New law: The top rate of 40 percent would apply to estates valued at more than $11.2 million ($22.4 million for couples). The increased levels expire after 2025. Corporate TaxesPrevious law: The top corporate rate was 35 percent. As with some high-income individual taxpayers, corporations are also required to calculate their tax liability using the corporate alternative minimum tax (AMT)— a parallel system that reduces or eliminates some deductions and tax credits. After calculating tax liability using both the regular corporate income tax system and the corporate AMT, corporations pay the higher of the two amounts. New law: The top rate would be 21 percent, and the corporate AMT would be repealed. Pass-Through Business TaxesPrevious law: Businesses organized as sole proprietorships, LLCs and partnerships don’t pay corporate tax rates. Instead, the owners pay individual income taxes on their share of business income – they’re called pass-through business taxes. Those tax rates are the same as the individual income tax rates. New law: Business owners can take a 20 percent deduction on their pass-through business income, with limits for those earning above $157,500 (single) and $315,000 (married, filing jointly). Revenue ImpactThe changes in the tax code are expected to reduce federal tax revenues by an estimated $1.46 trillion over 10 years, according to the nonpartisan Joint Committee on Taxation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
