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| Congressional Black Caucus |
Right is right and wrong is wrong, and it isn’t very difficult to tell one from the other. Moreover, it shouldn’t be difficult for the average
US taxpayer to see the benefits from the "The Tax Cuts and Jobs
Act." released by the Congressional Republicans, Thursday,
November 2, 2017.
While this legislation is still being
marked up and will have to be voted on in the Senate, it contains many
provisions that simplify the tax code, give tax cuts to families and businesses, and grow the
economy leading to higher wages and new or better jobs. As I will mention again later, the Congressional Black Caucus (CBC), in particular, should support "The Tax Cuts and Jobs Act."
Here is a succinct summary of the legislation published by the Americans for Tax Reform:
Here is a succinct summary of the legislation published by the Americans for Tax Reform:
Individual Provisions:
- Consolidates the seven tax brackets into four (12%, 25%, 35%, and
39.6%) - Under this reform, the
existing 10 percent
bracket goes to zero. The 15 percent bracket goes to 12 percent.
-The 12 percent bracket applies to
income up to $45,000
($90,000
for married couples). This does not include the standard deduction of
$12,000 or $24,000.
-The 25 percent bracket applies to
income between $45,001 and $200,000 ($90,001 and $260,000
for married
couples).
-The 35 percent bracket applies to income
between $200,001 and 500,000 ($260,001 and $1 million for married couples).
-The 39.6 percent bracket applies to income
above $500,000 ($1 million for married couples).
-Doubles the standard deduction (The first $12,000 for individuals
and $24,000 for families will not be taxed).
-Increases the child tax credit from $1,000 to $1,600 per dependent under 17 with an
additional $300 credit per parent. The child tax credit is currently used by 22
million Americans.
-Simplifies the tax code - The bill repeals personal
exemptions, repeals the state and local tax deduction for income and sales taxes and caps the
SALT deduction for property taxes at $10,000. The home mortgage interest is grandfathered in and preserved for
new homes up to $500,000. All other itemized deductions with the exception of charitable giving are repealed.
- Repeals the alternative minimum
tax - This tax is currently paid by 4.5 million individuals and families.
- Repeals the death tax effective 2024 - In years 2018 to 2023,
the exemption is doubled to $10 million ($20 million for a couple) and indexed to
inflation. The generation skipping transfer tax is also repealed while the gift
tax is lowered from 40 percent to 35
percent. Step-up in basis is preserved.
- Preserves retirement tax savings accounts such as
401 (k)s and Individual Retirement Accounts
- Permanently
reduces the corporate income tax rate to 20 percent effective immediately -
The current 35 percent federal rate is the highest in the developed
world. Reducing this rate to 20 percent will allow American businesses to compete against foreign
competitors and will allow the U.S. economy to grow. According to an analysis
by the Council of Economic Advisers, a 20 percent corporate rate would increase
average household income by between $4,000 and $9,000.
- Enacts 100 percent, full business expensing for five years -
Section 179 small business expensing is increased from $500,000 to $5 million, and the
phaseout is increased from $2 million to $10 million.
- Reduces the
business tax rate on pass-through entities from 44.6 percent to 25 percent -
This new rate would be applied based on one
of two formulas designed to prevent wage income from being mischaracterized as business income.
If they were honest and sincere, they would put aside petty politics and
vote to support the legislation. What they assume is that we are so stupid that
we won’t hold them accountable. And, we just might be. When I hear politicians
be referred to as leaders, maybe we are just that stupid to think of a politician as our leader. The CBC's leader is apparently the incompetent Nancy Pelosi which just about says it all.
As it was once told to a politician, "Become a candidate. No matter how much of an idiot you are, there will always be a sufficient number of greater idiots who think you are not. "
As it was once told to a politician, "Become a candidate. No matter how much of an idiot you are, there will always be a sufficient number of greater idiots who think you are not. "