WASHINGTON — Republican members of the U.S. House of Representatives unveiled its tax overhaul plan Thursday, which includes decreasing the number of personal income tax brackets, cutting the corporate tax rate and the eventual elimination of the estate tax.
But opponents of the plan said working families would not benefit from the legislation, which would also add to the country's deficit.
The Tax Cuts and Jobs Act includes four individual tax brackets with rates 12 percent, 25 percent, 35 percent and 39.6 percent, which the highest tax bracket remaining the same from the current system.
The standard deductible would nearly double for both individuals and couples, though deductions on medical expenses and student loan interest would …show more content…
"West Virginia taxpayers deserve a tax cut so that they can keep more of their hard-earned money," he said. "The plan released today will lower rates on taxpayers, including small businesses which are the back bone of West Virginia’s economy."
Rep. Evan Jenkins, R-W.Va., said the plan will allow West Virginia businesses to grow and its employees to also benefit.
"Many West Virginians are struggling after our state’s economic downturn, and they deserve to keep more of what they earn," he said.
The Joint Committee on Taxation reported under the bill, the federal deficit would increase by more than $1.48 trillion dollars over the next 10 years.
"As soon as the ink is dry, you're going to get calls to let's cut Medicare, let's cut Medicaid, let's cut education spending," said Chuck Marr, director of federal tax policy at the left-leaning Center on Budget and Policy Priorities.
The possible rise of the deficit is one issue Sen. Joe Manchin, D-W.Va., has with the bill, noting how the bill also put "investors over workers."
"None-the-less, I believe tax reform is something we must do, so in the coming days, I will do what West Virginians do best," he said, "bring people together and find common ground so that we can get something done."
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
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While most taxpayers agree that tax reform is necessary for our country the problem they encounter is the difficulty they experience when trying to understand all the political terms used when discussing tax reform. This paper is an attempt to help the taxpayers of our country to better understand the political terminology and gain knowledge about some of the proposals that have been explored.
Heated debates over tax cut have always been one of the central economic themes on the American political table. Since taxes relate directly to the quality of lives, it is by no means surprising to find people showing significant concern about policies regarding cutting or raising the amount they have to pay. The idea that lowering tax rate makes room for growth has remained generally popular among the majority, taking a possible decrease in individuals’ tax burden and increase in productivity into account. There is, however, extensive research conducted on the topic that produced controversial results. Despite its appeal to instant benefits for one’s saving account and investment, reducing tax rate has yet to show a definite positive effect
Expansion of the Medicaid coverage to all new eligible adults and increase fee for service and managed care by primary care physicians will be financed by federal funding. This will cause an outreageous increase in the Federal deficit from the historical 2.9% Gross Domestic Product to more than 20% by 2050.
The tax policy in the United States is very confusing. When the tax policy was originally written in 1913 it was four hundred pages. Now, over the past ninety one years, that tax policy has evolved to over 72,000 pages. Since the tax code has become so lengthy and nearly impossible to understand, the topic of tax reform has been in the minds of many. Although, most barely think about tax reform until tax season. It is a controversial subject due to the impact a change in tax code would have on the American people. The two most popular and widely known stakeholders in this debate are the two major political parties in the United States, the Democrats and the Republicans. The two parties share absolutely no common ground on the subject of
Cutting down individual taxes will generate more employment and will help generate more money, it will create more tax revenue, according to Mike DeBones, from “House Passes 2018 Budget, Taking a Crucial Step toward Tax Overhaul.” He states that “Our budget specifically paves the way for pro-growth tax reform that will reduce taxes for middle-class Americans and free up American businesses to grow and hire,” House Budget Committee Chairman Diane Black (R-Tenn.) said during floor debate Wednesday. I agree if the tax is
BBC: For the longest, Republicans have said the U.S. tax system is in need of repairing and Trump is the one taking the stand on it. He’s called for significant tax cuts which
After the elections, Republicans understand they have to pass a tax bill in order to show a significant accomplishment. Big losses in Virginia and New Jersey on Tuesday exposed their vulnerabilities going into next year’s midterm elections.
In 2009 the debt was amounted to about $12 trillion , or 83.4 percent of the country’s GDP (“Budget of the United States Government: Historical Tables Fiscal Year 2011” table 7.1). Since 2003, the debt has been increasing by more than $500 billion annually. The increase in 2009 was $1.9 trillion. According to the Congressional Budgeting Office, this debt will keep increasing at least for the next decade (“The Budget and Economic Outlook : Fiscal Years 2010 to 2020” 21).
CHARLESTON, W.Va. — For Jason Huffman, state director of the West Virginia chapter of Americans for Prosperity, the congressional efforts to pass tax legislation is an opportunity to spur economic growth.
The debates on tax cuts are making their way to headlines of every radio station, newspaper, and television station in America. Today, tax cuts would only benefit the wealthy and wouldn’t really benefit the lower class. “The administration and it’s congressional alleys are proposing to sharply reduce taxation of the business income primarily benefiting
The Armey-Shelby flat tax proposal will scraps the entire income tax code and replaces it with a flat-rate income tax that treats all Americans the same. This plan would simplify the tax code, promote economic opportunity, and restore fairness and integrity to the tax system. The flat rate would be phased-in over a three-year period, with a 19 percent rate for the first two years and a 17 percent rate for subsequent years.
"A revolutionary change in our tax system is fundamental to re-energizing the American economy and restoring the American dream" (Moore 1). Currently, there are two major plans being considered to try and fix the tax system in the United States. These two plans are the Flat Tax and the National Retail Sales Tax. "Both the Flat Tax and a National Sales Tax would replace today's discriminatory tax structure with a single low rate. Either plan would promote the kind of capital formation that America needs to boost workers' incomes and raise long-term economic growth" (Mitchell 1). This means that the flat tax would take away the savings from the government and pass them on to the citizens and businesses. By doing this, there would be a rise in long-term economic growth.
"Lower income taxes for all, with the greatest help for those most in need. Everyone who pays income taxes benefits - while the highest percentage tax cuts go to the lowest income Americans. I believe this is a formula for continuing the prosperity we've enjoyed, but also expanding it in ways we have yet to discover. It is an economics of inclusion. It is the agenda of a government that knows its limits and shows its heart." -President George W. Bush1
The encouragement of economic disparity because of these tax cuts is bad for America. The US should be aiming for more social and economic equality for everybody. Tax cuts can slow down the economy by putting more money into the wealthy peoples’ hands and giving less to the people who need it.
First of all, the marginal tax cut was one of the most significant policy in the governing of President Reagan. Starting from 1981, government reduced individual tax (the top tax rate was reduced from 70% to 50 %) and Windfall profit tax. As the Tax reform act of 1986 published, the tax rate of wealthiest Americans was decline to 28 % and corporation tax was decreased to 34%.” In addition, as marginal tax rate for wealthy people decreasing, personal exemption amount increased from $1,080 to $2,000. That means,