I voted for Trump! I have spoken personally with him around 5 times and he has always been very personable with me. I like his Family and we are so glad to be praying for him daily instead of Obama. I support him as our President.
That said can someone please tell me how The President’s Tax Cut Proposal is “fair and balanced?”
From what I can see from reading Fox, WSJ and CNN The President proposes cutting Corporate Taxes by 57% and 62% as follows:
1. The Max Corporate Rate for “C” Corps is 35% and the proposal is to cut it to 15%. Here’s the math: 35 – 15 = 20 / 35 = 57.14%.
2. The Max Corporate Rate for “S” Corps is 39.6% and the proposal is to cut it to 15% – a 62% cut: 39.6 – 15 = 24.6 / 39.6 = 62.12%. S corps are specialty incorporated business where the net income from the business flows directly from the balance sheet to the individual(s) that own the S Corp. Hence the max rate is 39.6%, which is the highest individual tax rate. Some S Corps are small businesses. Some are big businesses structured like President Trumps to avoid paying the C Corp tax and then the Max Personal Tax on the Dividends.
On balance if my math is right this is an approximate 60% tax cut for Corporations! A sixty percent tax cut for corporations! Please let that sink in.
Yet people who are JUST out there in the working class, middle and upper middle income class and retired folks on investment income are going to get a tax cut that seems to average less than 10%. Throw in the loss of property tax deductions and that 10% Tax Cut gets a lot smaller fast!
When I voted for Trump and the topic of taxes came up I was thinking everyone would share equally in the cuts – not equal in money but in the percentage of the cuts. 57% and 62% don’t seem anywhere in the ball park of equal with 10% or even less.
I may be wrong but I haven’t seen anything about doing away with Corporate Deductions – such as ITC, Accelerated Depreciation, etc. However, I do see that I will no longer be able to deduct the taxes I am paying to my Local and State Governments. To quote a friend of mine “this just burns my butt!” When I pay my property tax – and for the people who live in states with state income taxes – we don’t get to keep that money – it is GONE! Eliminating the set aside or Deduction is nothing more than “double taxation.” The Feds under this proposal are going to tax me on money I don’t even have? What kind of sense does that make?
It seems to me the people I see winning big in our President’s Tax Cut Proposal are: C or Regular Corporations and Sub S Corporations (Like our President’s) while the rest of us – including our children and grand children are going to be left picking up the check for the increased deficits these Corporate tax cuts will generate. I read one report from a Republican that for every 10% we cut the corporate tax rate we increase the budget deficit by one Trillion Dollars.
Then again who cares about working, middle and upper middle income workers, retired people and our children and grand children? I desperately hate to say it but I am shocked by this tax proposal coming from President Trump – a person who was elected by the working, middle and upper middle income workers and retired people. Simply stated this seems to me to be a sell out for his base and a buy in for the corporate world.