Tax Reform Essay

"Nearly all of the tax increases would fall on the top 1 percent," the Tax Policy Center report said. "The bottom 95 percent of taxpayers would see little or no change in their taxes."

Due to the dire nature of the current situation, it is improbable to completely avoid tax increases for wealthy families. However, there are scenarios in which the debt is addressed mostly through spending cuts rather than tax increases that negatively affect the wealthy. If the United States were to follow the Bush-era tax plan, the wealthy citizens of America would benefit at the expense of middle and lower classes. Specifically, if the U.S. were to allow the expiration of income below 250,000 dollars a year, 98% of households would no longer benefit from the Bush-era tax cuts. These, in turn, will increase the taxes for households, while excluding the wealthy families of the top 2% of the income distribution. Similarly, if the government were to modify the payroll tax in order to better encapsulate income (90% rather than 80%), the national debt would decrease while sparing those at the top income

Senator Paul’s proposal has offered a 14.5% flat rate tax that will be evenly applied to all forms of personal income, including salaries, wages, rents, dividends, interests and capital gains. The tax credit for child and the Earned-Income Tax Credit (EITC) will be retained to help the low-income earners. Study has shown that removing the EITC will cause about 16 million low- and moderate-income earner families to fall into or deeper into poverty (CBPP, 2015). Besides that, the standard deduction per filer will be increased to $15,000 and personal exemption to $5,000 – a family of four will not be taxed for the first $50,000 of income. According to the Tax Foundation’s Taxes and Growth (TAG) Model, wage rates will be lifted by 3.6% if the U.S. were to adapt the Canadian corporate flat tax of 15% (Hodge, 2015). Hence, low-income earners are not worse off with the higher standard deduction and increase in basic wages

The NAIFA has started to make getting a retirement plan a tiresome process, as each applicant would have to have obtained their degree or show some certificate/proof of employment to be able to qualify. The article “Tax Reform” written by Diane, R. Boyle indicates that “ the tax reform act won’t pull in any extra benefits either. EBT and Welfare benefits such as (food stamps, welfare money) would not be exempted from this rule.” When considering both sides, preventing Retirement and Tax Reform Act from passing is the most reasonable decision since this act would not only end up benefitting the rich and wealthy, “it’d only increase the gap between the social classes as well as increase the cost of the actual process” as stated by Boyle. A study conducted by the NIAFA on the Tax reform, says that, only 46% of American families actually apply for retirement savings. The article “Tax Reform” provided this statement as an example to show how this act would simply cost the U.S more money and increase the national debt due to the extra spending that would go towards advertising and promoting NAIFA’s tax reform during political campaigns . In addition to the strain that this act has on federal entitlement programs, passing this act would make it more difficult and more expensive for families to plan for their long-term financial

The Senate bill would adjust the seven individual income tax brackets, a change that would phase out by 2026. The corporate tax rate would be cut from 35 to 20 percent, and "pass-through" businesses would be taxed at 23 percent.

President Donald Trump and congressional Republican unveiled their framework for tax overhaul last Wednesday. The plan includes simplifying the tax structure from seven brackets with rates ranging from 10 percent to 39.6 percent to three brackets of 12 percent, 25 percent and 35 percent. The income levels of those rates were not announced in the plan/

It doesn't mean everyone. For example, Trump would raise the lowest tax bracket to 12% from 10%. he would eliminate the head of household status, which today benefits single parents of dependents more than if they just filed as single. And he would repeal personal exemptions, each worth $4,050 per parent and per dependent and Instead, Trump would greatly increase the standard deduction (to $15,000 for singles and $30,000 for married couples) and include a few new tax breaks for child care. He would retain today's child and dependent care tax credit. According to the article Donald Trump has claimed his tax plan will cut taxes for working- and middle-class Americans. Basically all trump wants to do is tax the people who wealthy and make them pay higher

Although people may think that it doesn’t help poverty, there are more people in poverty that you know. When you add in all work based tax credits, nearly 70% of income for low-income Americans is work related. The wages of American workers have been a stagnant since the 60’s.

The push for a tax reform continues to be a popular topic. Many people see the current structure as inequitable and complex. The new proposed tax structure that has been gaining attention is called the Fair Tax Act. It would institute a “national sales tax at a rate of 23%”if it were enacted. The idea is to make the tax structure more simplistic and spread out the tax burden. Another interesting proposed change relates to tax brackets. These brackets would no longer be needed to decide rates on taxable income. Investments will also be much different and potentially have a greater economic impact because the tax on capital gains and property will no longer be in existence. These are just a few of the changes that could occur with

During end of the month of September, President Donald Trump announced his newest tax plan that he wishes to employ in place of the current tax plan millions of American citizens use today. President Trump, and people whom are in his administration, has stated that the sole purpose of this plan is help the economy; lower the ever rising national debt; and give the hardworking, taxpaying citizens of the United States a tax break. As for whether or not this “new and improved” plan will actually help the nation and its occupying people is currently in debate. It has become apparent to me that there is no shortage of people from either side of this newest debate subject. Before my personal opinion on this

Marr said while the tax rate for high-income earners will remain at 39.6 percent, they will ultimately benefit from the bill because of the changes regarding the excise tax, corporate tax rate

Donald Trump is the chairman of The Trump Organization and a Presidential Candidate for the Republican Party. His ways of expressing himself and his goals have caused a big uproar amongst citizens. Trump’s remark about Mexicans made him one of the most hated presidential candidate amongst Hispanic communities. Apart from wanting to strengthen our immigration laws, Trump also wants to implement a new tax reform. According to Trump, this reform will provide tax relief for American families, grow our economy and make preparing taxes easier. One of his plans is to eliminate the marriage penalty, the Alternative Minimum Tax and the death tax. He, however, wants to keep the charitable giving deductions. His tax plan will not make single individuals, who earn less than $25,000 or married and together earn less than $50,000, owe any income tax. His reform will also decrease tax brackets from the current seven to four. These brackets will be divided into 0%, 10%, 20% and 25%, the biggest change coming from lowering the current 39.6% bracket to 25%. His tax reform would also cut the corporate tax rates for business from 35% to 15%.

The next two parts introduce the what the changes will be and who the most beneficiaries are under the new tax reform circumstance. Most importantly, which is how these reforms help business and individuals or whether revenues raise or not. The last section is covered my opinion primarily.

Taxes. Trump 's plan to come up with an improvement to our taxing system will move all citizens into three different tax brackets. As of right now we currently have seven. The top bracket for citizens claiming married joint filers having an income more than $225,000 a year would pay 33% (Bryan). The $75,000-to-$225,000 yearly income bracket would pay 25% (Bryan). The under-$75,000 bracket would pay 12% (Bryan). American People who make under $75,000 a year will be taxed at a 15% rate (Bryan). Lastly the top bracket made from those making $466,950 — pays 39.6% (Bryan). One of Trump’s proposals would cut the current corporate tax rate to 15% The tax for corporate companies sits at 39%, but majority companies pay much less in their tax rate. The average tax rate for S&P 500 companies is 29%, according to research by Goldman Sachs (Bryan). Trump’s whole philosophy over the tax system is to lower it and stimulate the economy in a more fashionable way.

The plan benefits more for the corporation, business, and people who earn an inheritance. The only thing I like about the proposal the increase in the standard deduction and child tax credit. I only have 1 child and make a lot of money by myself. I should not be penalized by receiving a lesser amount of money. Than someone who has multiple kids most of which receive funds from food stamps and other government agencies.