Friday, November 3, 2017

Republicans Unveil 'Cut Cut Cut' Tax Plan. Here Are 8 Things You Need To Know

Photo by Zach Gibson/Getty Images
On Thursday, House Republicans finally unveiled their tax reform plan. Overall, it’s a transformative move in terms of corporate taxes, and it should help the vast majority of individual taxpayers as well. There are holes in it, of course — and there are serious questions to be asked about blowing out the debt in the short term. But there’s no question that it would be a tremendous upgrade from the current tax system, which carries one of the highest corporate tax rates in the industrialized world and a massively complex individual tax system.
Here’s what you need to know.
1. Corporate Tax Cuts Are Slashed Dramatically. The proposal lowers the corporate tax rate from 35% to 20%. That puts America in line with the U.K. rather than above virtually every other industrialized country. Meanwhile, pass-through corporations will see their tax rates reduced from 39.6% to 25%.
2. Individual Tax Rates Change, But Not An Enormous Amount. Instead of the current seven-bracket system, the number of brackets is reduced to four. High income earners will earn a slight reprieve for income between $418,400 and $500,000 (the top tax bracket now kicks in at $418,400); earnings of between $200,000 and $500,000 will be taxed at 35%, meaning a slight increase for some of those households; between $45,000 and $200,000, tax rates will be 25%; below $45,000, the income tax rate will be 12%.
Read the rest from Ben Shapiro HERE.

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