Politics and Political Issues -  Trump upping taxes on poor, middle class (6202 views) Notify me whenever anyone posts in this discussion.Subscribe
 
From: Glen (GEAATL) DelphiPlus Member Icon Posted by host11/27/16 3:04 AM 
To: cj (CAROLJOYCE) DelphiPlus Member Icon  (1 of 320) 
 136495.1 

For some in middle class, Trump plan would mean tax increase

Washington Post
WASHINGTON - President-elect Donald Trump's proposals would modestly cut income taxes for most middle-class Americans. But for nearly 8 million families - including a majority of single-parent households - the opposite would occur: They'd pay more. Most married couples with three or more children would also pay higher taxes, an analysis by the nonpartisan Tax Policy Center found. And while middle-class families as a whole would receive tax cuts of about 2 percent, they’d be dwarfed by the windfalls averaging 13.5 percent for America’s richest 1 percent. Trump’s campaign rhetoric had promoted the benefits of his proposals for middle-income Americans...The tax hikes that would hit single parents and large families would result from Trump’s plan to eliminate the personal exemption and the head-of-household filing status. These features of the tax code have enabled many Americans to reduce their taxable income...7.9 million families with children would pay higher taxes under his proposals. About 5.8 million are led by single parents. An additional 2.1 million are married couples...Economists at the conservative Tax Foundation and right-of-center American Enterprise Institute...agree...A married couple with four children and income of $50,000 would absorb a tax increase of $1,090...Nearly half of Trump’s tax cuts would go to the top 1 percent of earners...For middle-income earners as a whole, the Trump proposals would cut taxes, even taking into account the increases on single-parent families. Those earning nearly $50,000 to about $83,000 — the middle one-fifth — would receive an average cut of $1,010, according to the Tax Policy Center. That would lift their after-tax incomes 1.8 percent. By contrast, the wealthiest 1 percent — those earning over $700,000 — would enjoy a tax cut averaging nearly $215,000, boosting their after-tax incomes 13.5 percent. And the richest 0.1 percent — those making above $3.7 million — would receive a bonanza: An average tax cut exceeding $1 million.

 

 
From: Glen (GEAATL) DelphiPlus Member Icon Posted by host11/27/16 3:07 AM 
To: Jeri (azpaints)  (2 of 320) 
 136495.2 in reply to 136495.1 
USA TODAY  - ‎Nov 25, 2016‎
 
President-elect Donald Trump gained the support of millions of Americans with his tax proposals, which include lower income tax rates and a simplification of the tax code that will reduce taxes for most Americans. However, not everyone would benefit ...
 

 
From: Glen (GEAATL) DelphiPlus Member Icon Posted by host11/27/16 3:10 AM 
To: Hummingbird (GAHummer) DelphiPlus Member Icon  (3 of 320) 
 136495.3 in reply to 136495.2 
11alive.com WXIA-TV Atlanta

One major part of Trump's tax plan involves more than doubling the standard deduction amount to $15,000 for single filers or $30,000 for married couples filing a joint return. When compared to the $6,200 and $12,600 standard deductions we have now, this may seem like a massive universal tax cut. But not so fast. Trump also proposes getting rid of the personal exemption, which reduces taxable income by $4,050 for each taxpayer, as well as $4,050 each for their spouse and any dependents claimed on their return. For example, I'm married with one child, so I'll get a $12,150 personal exemption on my 2016 tax return. For most people, this change will still work in their favor by a significant margin. In my personal situation, the loss of my $12,150 personal exemption would be more than offset by the $17,400 increase in my standard deduction. However, larger families whose personal exemptions are more than Trump's proposed increase in the standard deduction could see their deduction go down. Let's say that my wife and I had four children. Our family of six would be entitled to $24,300 in personal exemptions, as well as a $12,600 standard deduction, for a total of $36,900 in deductions. Under Trump's proposed $30,000 standard deduction for married couples, we would lose $6,900 worth of deductions. In a nutshell, Trump's standard deduction and personal exemption plan is mathematically unfavorable for married couples with more than two dependents and for single taxpayers with more than one...

Another potentially negative Trump tax change is the proposed elimination of the head-of-household filing status, which was used by more than 22 million taxpayers in the most recent year for which complete data is available. The head-of-household status allows single taxpayers who have one or more dependents to add $3,000 to their standard deduction. This tax filing status is often used by single parents and taxpayers whose elderly parents reside with them, to give a couple of examples. For millions of taxpayers, eliminating the head-of-household status would sharpen the sting of losing the personal exemption. I did an analysis of Trump's standard deduction plan using current IRS data, and the plan is mathematically unfavorable for head-of-household filers with any dependents. Because one of the main qualifications for the head-of-household status is having at least one dependent or other qualifying person, this means that 22 million people are likely to lose some of their deduction during Trump's presidency...

 

 
From: Glen (GEAATL) DelphiPlus Member Icon Posted by host11/27/16 3:15 AM 
To: ANNW3  (4 of 320) 
 136495.4 in reply to 136495.3 

Trump's tax: one budget buster and one revenue raiser

Financial Times - ‎3 hours ago‎
Donald Trump's campaign to become the next president of the US has thrown up two far-reaching proposals to reform the taxation of corporate profits: reducing the tax rate on domestic profits to 15 per cent, and taxing foreign profits of US corporations
 

 
From: Glen (GEAATL) DelphiPlus Member Icon Posted by host11/27/16 3:16 AM 
To: Joanne (spiesonline) DelphiPlus Member Icon  (5 of 320) 
 136495.5 in reply to 136495.4 

Anything Is Possible ? The Trump Administration And Estate Tax Repeal

Mondaq News Alerts (registration) - ‎Nov 25, 2016‎
Will the election of Donald Trump and Republican control of both houses of Congress bring with it the repeal of the estate tax? If so, should you begin planning (or not planning) accordingly?
 

 
From: cj (CAROLJOYCE) DelphiPlus Member Icon11/27/16 4:53 AM 
To: Glen (GEAATL) DelphiPlus Member Icon  (6 of 320) 
 136495.6 in reply to 136495.1 

Yup!  That is the plan. 

 

 
From: cj (CAROLJOYCE) DelphiPlus Member Icon11/27/16 5:01 AM 
To: Glen (GEAATL) DelphiPlus Member Icon  (7 of 320) 
 136495.7 in reply to 136495.5 

Repeal of the Estate Tax means we would no longer inherit at a 'stepped up" basis.  Very worrisome for the average elderly homeowner.

 

 
From: Alfi (THIALFI) DelphiPlus Member Icon11/27/16 10:58 AM 
To: cj (CAROLJOYCE) DelphiPlus Member Icon  (8 of 320) 
 136495.8 in reply to 136495.7 

Not the homeowner, but rather the homeowners heirs.

 "No one believes they are the greater fool." -- Charles Bilello

 

There is frequently more to be learned from the unexpected questions of a child than the discourses of men.
Read more at: http://www.brainyquote.com/quotes/authors/j/john_locke.html
There is frequently more to be learned from the unexpected questions of a child than the discourses of men.
Read more at: http://www.brainyquote.com/quotes/authors/j/john_locke.html
 

 
From: Bike (URALTOURIST1) DelphiPlus Member Icon11/27/16 1:02 PM 
To: Glen (GEAATL) DelphiPlus Member Icon  (9 of 320) 
 136495.9 in reply to 136495.5 

Federal Estate Taxes are almost a red herring for the vast majority of the unwashed of America, with the $5,000,000 exemption per estate, it just does not apply to most.  This is especially true if the money or value has been even so-so squirreled away in to uncounted systems or exempted fund bases.

Long Live Estate Lawyers!

---------------------

http://time.com/money/4272083/estate-taxes-who-pays/

The federal estate tax rate is a flat 40%, but as mentioned above, not every family has to pay. For one thing, as long as your spouse is a citizen, you can leave him or her any amount of property, tax free. Also, every person has a large federal estate tax “exemption” — $5.45 million in 2016 — which means you can pass along that much property to any other heirs without having to pay the federal government a cent in tax. (And you only pay the 40% on any amount that exceeds the exemption.) That exemption amount is adjusted annually for inflation, so it will continue to increase over time.

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Now for those in greedy states, you WILL have to continue to pay the Ferryman his tuppence to cross the river, just not to the Feds.

 

 

Warren
 
USCG Engineer 1961-1982
 
  • Edited November 27, 2016 1:07 pm  by  Bike (URALTOURIST1)
 

 
From: cj (CAROLJOYCE) DelphiPlus Member Icon11/27/16 5:01 PM 
To: Alfi (THIALFI) DelphiPlus Member Icon  (10 of 320) 
 136495.10 in reply to 136495.8 

Yup!   Where right now those heirs get up to 5,000,000 tax free at a stepped up basis. 

Who do you think the elimination of the Estate tax is going to hurt?

 

 

 
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