The plan of six Senators to cut trillions in US debt has gotten support from the President. It has some amazing features. At a time when the budget is deep deep in debt the gang propose huge tax breaks for corporations and the very rich.
Supposedly to keep Republican anti-taxer happy tax increases will be disguised as tax “tradeoffs”, taking away “breaks” and “loopholes”, but lowering rates for all.
What it look like, though, is a way to repeal middle class tax breaks in favor of lowering rates for people who make over $400,000 a year.
According to an article on Yahoo “The plan would simplify the tax code by reducing the number of tax brackets from six to three, lowering the top rate from 35 percent to somewhere between 23 percent and 29 percent. That could provide a windfall for wealthy taxpayers because the 35 percent tax bracket currently applies to taxable income above $379,150.”
“To help pay for lower rates, the plan would reduce popular tax breaks for mortgage interest, health insurance, charitable giving and retirement savings.”
“The alternative minimum tax, which was enacted in 1969 to make sure that high-income families pay at least some income tax, would be repealed.”
But there would be tax increases. As you might now for the first time Obama’s new health care plan taxes “high-priced” health insurance plans. The Gang of 6 would tax more health plans.
The Gang of Six plan is silent about taxes on capital gains and dividends which is only 15%. Hedge fund managers need this incentive. Working slobs need no incentive.
How this will lower rates for “all” is beyond my limited powers of understanding.
“On the business side, the plan would lower the corporate income tax rate from 35 percent to somewhere between 23 percent and 29 percent, all of which would be funded by eliminating unspecified tax breaks for businesses.”
And there’s more goodies for business. Under current law, the U.S. taxes overseas profits of American corporations but only after they return those profits to the U.S. Companies have not been bringing the profits back unless they’re given breaks in the form of super low tax rates.
The Gang’s idea? Only profits made in the U.S. would be taxed. You could call this the SEND ALL YOUR FACTORIES OFF-SHORE section.
Outside of changing the Constitution and restoring slavery it’s all the wealthy might want.