On September 27, the “Big 6″* released their tax reform framework. It doesn’t add much more than we have known for the past 16 months other than:
- Top corporate rate is 20% rather than President Trump’s 15%. The 20% rate should help us be more competitive internationally, particularly along with a shift from a worldwide system to a territorial one (15% would be better, other than for the budget effect).
- The individual brackets will be 12%, 25% and 35% and perhaps something higher than 35%. In April, President Trump suggested 10%, 25% and 35% while last June the House Republicans suggested 12%, 25% and 33%. Today’s lowest bracket (other than zero) is 10%. Seems odd to try to sell tax cuts with a higher lowest rate, but the effect also depends on where the brackets start and end and a few other provisions.
The House Republican plan to repeal and replace the Affordable Care Act (aka Obamacare) that was released on March 6 omits something that the House Republican health reform blueprint of June 2016 said would be included. The missing item is a big one, that if modified, would make the tax law more equitable, reduce health care spending, raise revenue (that could be used to help those without insurance), and help a lot of people know what their health insurance costs.
According to Reuters, A senior United States Treasury Department official said on January 22, 2014 that Republican Party opposition to a new law meant to fight offshore tax dodging by Americans will not impede the Obama administration’s efforts to implement it worldwide.
The Republican National Committee (RNC) on January 24, 2014 called for the repeal of a U.S. anti-tax-evasion law (FATCA), siding with BIG BANKS, libertarians and American expatriates that have criticized the Obama administration statute.
At its winter meeting in Washington, the RNC approved by voice vote a resolution in favor of abolishing the 2010 Foreign Account Tax Compliance Act (FATCA), set to take effect in Read More