Politico: Tax plan taking shape

[GeorgiaModerate]

http://www.politico.com/story/2017/08/22/trumps-team-and-lawmakers-making-strides-on-tax-reform-plan-241873

Some key points:

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[Holmes]

Haha. They want to cut taxes for the rich and corporations and replace that revenue with a 401(k) tax gimmick that hurts regular people.

These people don't care about anyone but their rich friends. If the health care debacle didn't showcase thst enough.

[KingSweden]

Eliminating the local deduction is among the worst tax ideas I've ever heard.

Taxing 401(k)s up front is a bad idea too. They do realize Roth IRAs don't advantage the government...?

Capping the MID isn't a bad idea but the devils in the details

[Hindsight was 2020]

Taxing 401(k) plans? Yeah that Trump is a real "working man's champion"

[TheSaint250]

Just curious: is Trump actually doing anything, or is he letting everyone else do it instead?

[GeorgiaModerate]

Just curious: is Trump actually doing anything, or is he letting everyone else do it instead?

It says "Trump's top aides".  I really doubt that Trump has the knowledge or attention span to get into the actual details.

[Torie]

Businesses cannot deduct interest expenses?  That strikes me as insane.

[TheSaint250]

Just curious: is Trump actually doing anything, or is he letting everyone else do it instead?

It says "Trump's top aides".  I really doubt that Trump has the knowledge or attention span to get into the actual details.

Yeah this seems right. This is the main reason I don't like him anymore. He wants to be POTUS without putting in the work.

[mvd10]

Eliminating itemized deductions always is a good thing (except maybe the charitable contributions deduction). Cutting marginal tax rates in a revenue neutral way generally should increase growth (though not by much, income tax rates don't really affect the economy if they're fairly low). Though I guess losing the state and local tax deduction sucks if you live in California or NY (then again, it mainly benefits the wealthy and since when do the Dems care about them?).

I do wonder what phasing in full expensing for small businesses means. It sounds like it's going to be complex and arbitrary, and simplicity was one of the main arguments for full expensing.

Taxing 401K's really looks like a bad idea.

Businesses cannot deduct interest expenses?  That strikes me as insane.

This is actually supported by a lot of economists. The interest deduction causes excessive debt. And if you really want to slash the corporate tax rate without increasing the deficit or raising other taxes this might be the only way. Getting rid of the most obvious corporate loopholes only gets you to 28-30%.

[Brittain33]

On what planet do Republicans from California, New Jersey, and New York, who are needed for a majority in the House, vote to remove the deduction for state income taxes or for capping the home mortgage exemption?

[Sprouts Farmers Market ✘]

Taxing 401K's really looks like a bad idea.

This is very dumb, but lowering rates ought to cause people to desire this arrangement anyway. Of course, it disadvantages the government in the long-term with highly likely tax-free gains, but it would happen naturally

[Virginiá]

Just curious: is Trump actually doing anything, or is he letting everyone else do it instead?

During the campaign, either a former lawyer/accountant of his or someone else close to him said in response to the idea that Trump would bring "special knowledge of taxes" to the White House that he doesn't actually know much about the tax code - he just has other people do it.

So I doubt he's really helping anything along. Part of Trump's major weaknesses is that he is absolutely devoid of intellectual curiosity. Many of us would study up on a subject if it interested us, even if so we just become more well-rounded individuals. Trump on the other hand never reads and never tries to learn anything that takes longer than a few minutes to wrap his head around.

Say what you will about Obama, but at least the man put in the hours boning up on whatever policies or issues that faced him. He was known for spending a long time on things like that. Probably one of the bigger contrasts with Trump.

[Indy Texas]

On what planet do Republicans from California, New Jersey, and New York, who are needed for a majority in the House, vote to remove the deduction for state income taxes or for capping the home mortgage exemption?

They don't. This is DOA.

[Maxwell]

lol they're going to fail at Tax Reform too, aren't they???

Incredible. Just incredible. I, for one, am starting to get tired of all the winning going on.

[YE]

This will fail and they're gonna get desperate and try to do a 10 year tax cut like the Bush tax cut.

[Attorney General, LGC Speaker, and Former PPT Dwarven Dragon]

This will fail and they're gonna get desperate and try to do a 10 year tax cut like the Bush tax cut.

Doing a 10 year cut wouldn't be any easier though. They're going to use reconcillation either way because they want a cut on the top income tax rate, something 45 democrats have pledged to vote against.

[Badger]

Eliminating the local deduction is among the worst tax ideas I've ever heard.

Taxing 401(k)s up front is a bad idea too. They do realize Roth IRAs don't advantage the government...?

Capping the MID isn't a bad idea but the devils in the details

Yes, hell yes, and yep.