Lopsided tax reform proposals

Florida lawmakers vote to end 'tampon tax,' ok tax holidays

The only way out for Republicans is to impose a new tax to finance lower corporate and personal income taxes - notably, a VAT as applied by most other advanced industrialized countries. President Trump has been dealt a very bad hand when it comes to the federal fiscal situation. Trump's Goldman Sachs advisers expect the tax plan will pay for itself with economic growth.

Tax increases were enacted in 1982, 1984 and 1988.

The CRS analyzed the individual income tax changes in terms of vertical equity (i.e., distribution across income classes) and horizontal equity (i.e., the treatment of taxpayers with similar abilities to pay).

The corporate tax rate in the USA was dropped in 1986 from around 50 percent to 34 percent. When tax rates are reduced, the value of these tax assets declines.

On the individual side, now the property-tax deduction is wrapped into the more general taxes-paid deduction. The last one alone, which affects just 5,300 fortunes annually, would cost some $174 billion over a decade, according to the non-partisan Tax Policy Center.

"I respond this is a matter of federalism, and you shouldn't subject this income to a double taxation", Faso said on public radio station WCNY last week. That mortgage-interest deduction has been in the IRS tax codes since the income tax began in 1913. It was no longer possible to invest in tax shelters. Trump wants to lower the federal rate to 15%. As former Sen. Phil Gramm pointed out recently, past official scoring of tax legislation failed to fully anticipate the economic gains that follow pro-growth tax reductions. The problem for the Trump administration is that by expanding the budget deficit and borrowing to pay for the many economic transformations being proposed, the financing will largely come from foreigners. If the economy over this period grew at 2 percent instead of 3.5 percent, average income in 2008 would have been $23,000 instead of $50,000.

Another hallmark of the 1986 changes was that all types of income were taxed equally so that the marketplace would ensure that investments resulted in the greatest productivity. Will they drop down to a 10 percent tax bracket, which would be a benefit, or are they going to be asked to pay 10 percent more?

Google warns of phishing scam that impersonates Google Docs
A sophisticated Google Docs phishing scam has been spreading rapidly on Wednesday as it began landing in Gmail users' inboxes. Google offers a two-factor authentication set up on Gmail that adds an extra layer of security to the users' accounts.

Congress needs to pass an "America First" tax reform plan that mirrors the President's plan.

Many Republicans (though not Trump) revile wasteful infrastructure spending, or claim to, but at least this round wouldn't increase the deficit, because it's paid for - by the people most directly affected.

President Trump has incorporated variations of these proposals. Both Trump and Ryan proposals differ significantly from those that President Reagan envisioned. Again, both of our analyses found that neither of the proposals were revenue neutral. In order fund his proposed tax cuts, Speaker Ryan suggested the implementation of a new consumption-based tax. For instance, after Guangdong opted to scale out low-margin and highly-polluting textile factories around 2007, the latter surfaced in Bangladesh (today's corporate tax rate 25%) and Sri Lanka (15%), Indonesia and Myanmar (25%), among others. Most of the 35 experts who disagreed with the statement said the "strongly disagreed". They want to lower rates and reduce deductions on both the corporate and individual sides of the tax code, which will start a gusher of red ink.

Yet the proposal so far remains short of vital details, including how it would be paid for. But this exercise did reinforce my perceptions that the current proposals bear little resemblance to Reaganomics.

Unfortunately, Trump and the Republicans are hung up by conflicting objectives and special interests that make the prospects for success hard.

Democrats and a small handful of Republicans, citing Trump's ongoing business interests, have pushed him to release his returns or to pressure Congressional leaders to exercise their authority to obtain them legally.

The tax debate is playing out in Washington as NY school boards prepare to put school budgets to voters on May 16.

Related news:

Hot News

Washington's Oubre suspended for key playoff game
May 08, 2017 - 12:29
And I don't shoot one free throw. "They played harder than us, and things were going their way", said Boston's Terry Rozier . Thomas was held to 13 points in Boston's Game 3 loss, after going for 33 and 53 in Games 1 and 2 in Boston, respectively.

Athens politicians react to House passage of health care bill
May 08, 2017 - 12:07
But Schick is anxious what will happen to her insurance, when she moves off her parents' plan with her now pre-existing condition. Unlike House Republicans, senators have said they want to know what the full impact of Trumpcare will be before they vote on it.

Ken Warren: Overtime magic and other intriguing Senators numbers
May 08, 2017 - 11:53
Nick Holden's second tally in consecutive contests made the score 2-0 and quieted the erstwhile enthused Senators fans. At home in the playoffs this season, the Rangers are 4-1 (2-0 against the Senators and 2-1 against the Canadiens).

isis-killer-beheading-video-story-top Durant scores 38 points, Warriors beat Jazz to take 3-0 lead
May 08, 2017 - 11:37
He kept the Warriors going even as the Jazz pulled ahead late in the first half and led by nine points in the third quarter. Whether on the fast break or in half court sets, however, Golden State's big guns have still been getting good looks.

isis-killer-beheading-video-story-top Larsson leads Oilers past Ducks 5-3 in wild series opener
May 07, 2017 - 16:16
Maroon was in the penalty box for knocking down Gibson when Getzlaf beat Talbot with a wrist shot from the hashmarks at 11:51. The Oilers ended up on a 2-1 breakaway as Draisaitl carried the puck to the Anaheim zone, alongside Milan Lucic.

isis-killer-beheading-video-story-top Buffett cuts stake in IBM and shares slide
May 07, 2017 - 16:00
Buffett told shareholders Saturday that Berkshire could do a very large deal because it has more than $90 billion cash on hand. Buffett says the board would look at both options if it ever decided he could generate good returns by investing the money.

Some rivers receding, but Mississippi River remains high
May 07, 2017 - 15:49
Among them are Route 30 or Gravois at the Meramec River and Route 47 from the Missouri River Bridge in Washington to Marthasville. The governor declared a state of emergency Monday after more than a week of severe storms, flooding and tornadoes.

Sore ankle keeps Raptors G Lowry out of starting lineup
May 06, 2017 - 16:20
The doctors and trainers and medical people were just telling him he shouldn't try to go because he was in so much pain". Playing without its All-Star point guard, Toronto gave the Cavaliers all they could handle for the first three quarters.

Trainer Todd Pletcher will tie record of most horses in Derby
May 06, 2017 - 09:36
Always Dreaming will break from the No. 5 post, which has produced nine Derby winners, most recently California Chrome in 2014. Classic Empire trains on track prior to the 143rd Kentucky Derby at Churchill Downs on May 4, 2017 in Louisville, Kentucky.

Facebook posts $3 bn profit in Q1
May 05, 2017 - 16:12
Instagram Stories, recognized by many as a clone of Snapchat Stories, now counts 200 million daily active users . Mobile ads and solid user growth across its suite of apps contributed to a strong first quarter for Facebook .

isis-killer-beheading-video-story-top Democratic leader cites 'good progress' toward avoiding government shutdown
May 05, 2017 - 16:07
Now Trump is saying he may slide that request to September, making it easier for lawmakers to pass a new spending bill. Cathy McMorris Rodgers, R-Wash., leaves a news conference after a GOP caucus meeting on Capitol Hill in Washington , .

isis-killer-beheading-video-story-top MRI confirms partial lat tear for Mets' Noah Syndergaard
May 03, 2017 - 17:36
Syndergaard (1-2) gave up five runs on five hits in the first inning of Sunday's 23-5 loss to the Nationals . Right now, MLB.com's Anthony DiComo reports that Rafael Montero will start in place of Syndergaard.

isis-killer-beheading-video-story-top Packers make Biegel's dream a reality, complete ten-member draft class
May 03, 2017 - 16:40
King said before pausing to catch himself. "The further I got through the process, the more I wasn't anxious about it". I'm just grateful the Packers picked me. "I don't think that ever changes, I think we've always wanted to get faster".

isis-killer-beheading-video-story-top House Republicans Gear Up for Possible Health Care Vote This Week
May 02, 2017 - 22:02
Freedom Caucus members largely defeated the original bill but several moderate Republicans also opposed the AHCA. Brett Guthrie, a Republican who serves on the House's Energy and Commerce Committee told CNN last week.

Reviewing the 2017 Chicago Bears draft class and the Bears "moving forward"
May 02, 2017 - 21:40
If you add Thomas along with DeForest Buckner and Arik Armstead and the 49ers all of sudden have a formable defensive line. But the selection of Trubisky makes you wonder if Pace has faith in Glennon even living up to his contract.