- Two rate brackets of 10% and 25%, and
- A surtax of 10% on "certain types of earned income" over $450,000.
"Certain types of earned income" means salaries. It doesn't include farmers or manufacturers or, presumably, businesses. And it doesn't include income from investments.
This is a cut in the top rate of about one-third, give or take. There is no indication yet what credits and deductions (tax expenditures) will be cut in order to make up for the lost revenue. But there is some indication that the poorest taxpayers will be hit by cutting back on refundable credits.
That last part is really funny. On Sunday I was watching a panel discussion with Forbes' Avik Roy, also of the Manhattan Institute, who was arguing that we shouldn't raise the minimum wage. Instead we should strengthen the Earned Income Tax Credit.
Evidently, the Republicans in the House don't agree with him.
No mention is made of any changes in the treatment of capital gains. And no mention is made of any change in corporate taxes. I guess we'll just have to wait and see.
According to the Post, "the vast majority of taxpayers would see little change in the ultimate size of their tax bills..."
Translation: the very rich will get a large tax cut. The rest of us will get nothin'.
This is a cut in the top rate of about one-third, give or take. There is no indication yet what credits and deductions (tax expenditures) will be cut in order to make up for the lost revenue. But there is some indication that the poorest taxpayers will be hit by cutting back on refundable credits.
That last part is really funny. On Sunday I was watching a panel discussion with Forbes' Avik Roy, also of the Manhattan Institute, who was arguing that we shouldn't raise the minimum wage. Instead we should strengthen the Earned Income Tax Credit.
Evidently, the Republicans in the House don't agree with him.
No mention is made of any changes in the treatment of capital gains. And no mention is made of any change in corporate taxes. I guess we'll just have to wait and see.
According to the Post, "the vast majority of taxpayers would see little change in the ultimate size of their tax bills..."
Translation: the very rich will get a large tax cut. The rest of us will get nothin'.
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