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XPost: alt.politics.republicans, us.taxes

Late Tuesday night, the Republican Senate passed historic tax reform
� a massive package of corporate tax cuts and well-sized individual
tax cuts, combined with the repeal of the individual mandate and
opening the Arctic National Wildlife Refuge for oil exploration. It
represents the only significant win for President Trump and the
Republicans in Congress � but it is a major win. Here�s what you
need to know.

1. Virtually Everyone Will Get A Tax Cut. Despite the media�s
insistence that this is a �tax cut for the rich,� virtually everyone
who pays taxes gets a tax cut. The only people who see tax increases
are high income-earners living in high-tax states (like yours
truly). This isn�t the biggest tax cut in history, as Republicans
have been pitching, but it�s not insignificant either � according to
the Tax Policy Center, the average household will receive a tax cut
of $1,610 in 2018; an average household earning $1 million or more
would see a tax decrease of approximately $69,660, as compared with
$870 for households making $50,000 to $75,000. The reason for that:
high income earners pay the vast bulk of the taxes in the country.
The idiotic idea that Americans will pay more taxes after the bill �
an idea believed by 50% of the population � is simply wrong.

2. Individual Tax Decreases Sunset, But Will Likely Continue. The
media are making a lot of the fact that these tax rates expire in
2025 � a provision Republicans had to include in order to pass the
bill through reconciliation. But the chances that these individual
tax rates will be increased for those in the middle class are
negligible � even Democrats aren�t stupid enough to dramatically
raise taxes on the middle class.

3. Corporate Tax Rates Drop Dramatically. This was the biggest
motivating factor with the bill: cutting the corporate tax rate. The
United States had the highest corporate tax rate in the
industrialized world. Cutting that rate from 35% to 21% is a huge
cut indeed, and brings the United States into competition with
European states with far lower corporate tax rates. Countries like
Ireland, which has a 12.5% corporate tax rate, have seen high
sustained growth thanks to a healthy business climate � Ireland cut
its corporate tax rate from 40% to 12.5% in 1995, and has seen 23%
GDP growth, compared with 7.2% GDP growth from 1960 to 1995.

4. There Is A Big Increase In The Child Tax Credit. The child tax
credit, which is truly a redistribution scheme backed by some
conservatives, will be boosted to $2,000 per child and will be
refundable up to $1,400. That was the provision Sen. Marco Rubio
(R-FL) wanted, and one he got � and one that will be politically
beneficial to Republicans in their fight to make the tax bill seem
populist.

5. High-Income Earners In High-Tax States Pay More. Because tax
reform includes reductions in tax deductions for state and local
taxes, those in high-tax states with high incomes could pay more.
Furthermore, the mortgage interest deduction has been decreased
markedly, which hits high real estate value blue states. This could
lead to a downturn in the real estate market.

6. Itemization Is Downsized. The new bill doubles the standard
deduction, so fewer Americans will bother itemizing � they won�t
reach the standard deduction with itemization. This means
simplifying the tax system, meaning that many Americans will be able
to fill out their taxes on a postcard.

7. The Individual Mandate Is Gone. The tax bill uses the death of
the individual mandate to reduce deficits. That�s because many of
those who were encouraged to seek health insurance by the individual
mandate were on Medicaid, meaning that they cost the federal
government billions. Now many people will opt out. The upside to
ending the individual mandate is obvious: Americans will no longer
be forced to purchase a good they don�t want. But there is a
downside: that cash from the individual mandate was used to bring
down costs for older and sicker members of the individual insurance
market. That means that Republicans will have to either reduce
regulations in health care, states will have to do so, or insurance
companies will have to find better ways to compete on pricing � or, alternatively, Republicans can bail out the insurance companies. It
looks like the latter possibility is most likely, which effectively
means a new government entitlement.

8. Oil Exploration In The ANWR Is Now Possible. For well over a
decade, Democrats have prevented the oil exploration of the Arctic
National Wildlife Refuge. That was foolish policy, given the amount
of oil expected to be found there, as well as the small footprint
necessary for drilling. Concerns about the impact on wildlife have
been wildly overstated � caribou populations have increased in areas
around existing pipelines. Alaskans are likely to be far richer than
they otherwise would have been thanks to this provision.

9. Deficits Will Increase. The bill was slated to create $1.5
trillion in new deficits. That�s likely an understatement, since the
individual tax rates won�t be allowed to sunset. That means that
Republicans will have to figure out a way to cut, or they�ll just be
continuing to blow through borrowed cash, which means inflation or
tax increases in the future.

All in all, the Republican tax bill is strong policy � and insertion
of the end of the individual mandate could turn out to be a feat of
political genius by Sen. Tom Cotton (R-AR). The bill is unpopular
right now, but that�s because most Americans believe the media �
when they see that their taxes are lower, that effect will dissipate
somewhat. With that said, Republicans had better see continued
strong economic growth, or voters will mistake correlation for
causation and attribute any weakening in the economy to the tax
reform bill, buying into the Democratic narrative that Republicans
were out to help fat cats rather than middle class Americans.

This is President Trump�s first big legislative win. And it deserves
to be cheered by conservatives.


--
Dems & the media want Trump to be more like Obama, but then he'd
have to audit liberals & wire tap reporters' phones.

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XPost: alt.politics.republicans, us.taxes

Ubiquitous wrote:

Late Tuesday night, the Republican Senate passed historic tax reform

And you posted this off-topic article here because?

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XPost: alt.tv.pol-incorrect, alt.politics.usa, alt.fan.rush-limbaugh
XPost: alt.politics.republicans, us.taxes

On 12/20/2017 20:05, Ubiquitous wrote:

Late Tuesday night, the Republican Senate passed historic tax reform
— a massive package of corporate tax cuts and well-sized individual
tax cuts, combined with the repeal of the individual mandate and
opening the Arctic National Wildlife Refuge for oil exploration. It represents the only significant win for President Trump and the
Republicans in Congress — but it is a major win. Here’s what you
need to know.

1. Virtually Everyone Will Get A Tax Cut. Despite the media’s
insistence that this is a “tax cut for the rich,” virtually everyone
who pays taxes gets a tax cut. The only people who see tax increases
are high income-earners living in high-tax states (like yours
truly). This isn’t the biggest tax cut in history, as Republicans
have been pitching, but it’s not insignificant either — according to
the Tax Policy Center, the average household will receive a tax cut
of $1,610 in 2018; an average household earning $1 million or more
would see a tax decrease of approximately $69,660, as compared with
$870 for households making $50,000 to $75,000. The reason for that:
high income earners pay the vast bulk of the taxes in the country.
The idiotic idea that Americans will pay more taxes after the bill —
an idea believed by 50% of the population — is simply wrong.

2. Individual Tax Decreases Sunset, But Will Likely Continue. The
media are making a lot of the fact that these tax rates expire in
2025 — a provision Republicans had to include in order to pass the
bill through reconciliation. But the chances that these individual
tax rates will be increased for those in the middle class are
negligible — even Democrats aren’t stupid enough to dramatically
raise taxes on the middle class.

3. Corporate Tax Rates Drop Dramatically. This was the biggest
motivating factor with the bill: cutting the corporate tax rate. The
United States had the highest corporate tax rate in the
industrialized world. Cutting that rate from 35% to 21% is a huge
cut indeed, and brings the United States into competition with
European states with far lower corporate tax rates. Countries like
Ireland, which has a 12.5% corporate tax rate, have seen high
sustained growth thanks to a healthy business climate — Ireland cut
its corporate tax rate from 40% to 12.5% in 1995, and has seen 23%
GDP growth, compared with 7.2% GDP growth from 1960 to 1995.

  Could it be that the tax rate in other industrialized nations is
lower because
the pay is much lower than Americans?

4. There Is A Big Increase In The Child Tax Credit. The child tax
credit, which is truly a redistribution scheme backed by some
conservatives, will be boosted to $2,000 per child and will be
refundable up to $1,400. That was the provision Sen. Marco Rubio
(R-FL) wanted, and one he got — and one that will be politically
beneficial to Republicans in their fight to make the tax bill seem
populist.

5. High-Income Earners In High-Tax States Pay More. Because tax
reform includes reductions in tax deductions for state and local
taxes, those in high-tax states with high incomes could pay more.

  So high-income workers in the USA. should pay more taxes than workers
in other industrialized countries. whose incomes may be much lower than American workers. Maybe that's why a lot them migrate to the USA.

Furthermore, the mortgage interest deduction has been decreased
markedly, which hits high real estate value blue states. This could
lead to a downturn in the real estate market.

6. Itemization Is Downsized. The new bill doubles the standard
deduction, so fewer Americans will bother itemizing — they won’t
reach the standard deduction with itemization. This means
simplifying the tax system, meaning that many Americans will be able
to fill out their taxes on a postcard.

7. The Individual Mandate Is Gone. The tax bill uses the death of
the individual mandate to reduce deficits. That’s because many of
those who were encouraged to seek health insurance by the individual
mandate were on Medicaid, meaning that they cost the federal
government billions. Now many people will opt out. The upside to
ending the individual mandate is obvious: Americans will no longer
be forced to purchase a good they don’t want. But there is a
downside: that cash from the individual mandate was used to bring
down costs for older and sicker members of the individual insurance
market. That means that Republicans will have to either reduce
regulations in health care, states will have to do so, or insurance
companies will have to find better ways to compete on pricing — or, alternatively, Republicans can bail out the insurance companies. It
looks like the latter possibility is most likely, which effectively
means a new government entitlement.

8. Oil Exploration In The ANWR Is Now Possible. For well over a
decade, Democrats have prevented the oil exploration of the Arctic
National Wildlife Refuge. That was foolish policy, given the amount
of oil expected to be found there, as well as the small footprint
necessary for drilling. Concerns about the impact on wildlife have
been wildly overstated — caribou populations have increased in areas
around existing pipelines. Alaskans are likely to be far richer than
they otherwise would have been thanks to this provision.

9. Deficits Will Increase. The bill was slated to create $1.5
trillion in new deficits. That’s likely an understatement, since the individual tax rates won’t be allowed to sunset. That means that Republicans will have to figure out a way to cut, or they’ll just be continuing to blow through borrowed cash, which means inflation or
tax increases in the future.

All in all, the Republican tax bill is strong policy — and insertion
of the end of the individual mandate could turn out to be a feat of
political genius by Sen. Tom Cotton (R-AR). The bill is unpopular
right now, but that’s because most Americans believe the media —
when they see that their taxes are lower, that effect will dissipate somewhat. With that said, Republicans had better see continued
strong economic growth, or voters will mistake correlation for
causation and attribute any weakening in the economy to the tax
reform bill, buying into the Democratic narrative that Republicans
were out to help fat cats rather than middle class Americans.

This is President Trump’s first big legislative win. And it deserves
to be cheered by conservatives.

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)