The White House and congressional Republicans are finalizing a tax plan that would slash the corporate rate while likely reducing the levy for the wealthiest Americans
[...] The plan would likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, people familiar with the plan said Monday. They spoke on condition of anonymity ahead of a formal announcement.
In addition, the top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said. It will seek to simply the tax system by reducing the number of income tax brackets from seven to three.
[...] Republican senators on opposing sides of the deficit debate have tentatively agreed on a plan for $1.5 trillion in tax cuts. That would add substantially to the debt and would enable deeper cuts to tax rates than would be allowed if Republicans followed through on earlier promises that their tax overhaul wouldn't add to the budget deficit.
https://www.apnews.com/d7929cdd15c3437db07147d219b391c4
(Score: 4, Informative) by pTamok on Tuesday October 17 2017, @10:41AM (9 children)
If the drop in corporate tax rate is accompanied by laws to prevent USA domiciled corporations holding profits untaxed overseas ("offshore corporate income tax deferral"), then it could increase revenues.
2014: Reuters:Untaxed U.S. corporate profits held overseas top $2.1 trillion: study [reuters.com]
2013:Business Insider: Top 10 Companies With Ginormous Sums Of Cash Parked Overseas [businessinsider.com]
2014:CRN:Overseas Profits And The U.S. Tax Rate: Why IT Vendors Say Their Hands Are Tied - issuing bonds instead of repatriating profits. [crn.com]
2016:President elect Trump proposed decreasing applicable tax rate to 10% for overseas profits [broadstreetalerts.com]
https://en.wikipedia.org/wiki/Companies_of_the_United_States_with_untaxed_profits [wikipedia.org]
(Score: 0) by Anonymous Coward on Tuesday October 17 2017, @10:55AM
Yes, but it rewards the companies that took their money overseas and punishes the ones that did not.
It may be the least evil option we have, but it's still a stick in the eye for any corporations that didn't play the same money-shuffling games.
(Score: 2, Informative) by Anonymous Coward on Tuesday October 17 2017, @12:09PM (4 children)
The Tax Policy Center seems to have done a very detailed analysis including what you mentioned and concluded that:
"the federal debt would rise by at least $3.0 trillion over the first decade"
Also, the Republicans who wrote the plan also assume that it will increase the deficit. They are, obviously, much more optimistic about the numbers:
"Republican lawmakers reportedly plan to craft a budget that assumes up to $1.5 trillion in additional red ink over a decade."
http://www.taxpolicycenter.org/publications/analysis-house-gop-tax-plan [taxpolicycenter.org]
http://www.npr.org/2017/09/27/553860929/republicans-outline-biggest-tax-code-overhaul-in-a-generation [npr.org]
(Score: 3, Insightful) by Anonymous Coward on Tuesday October 17 2017, @01:12PM (3 children)
Why would Republicans ever want to reduce federal debt?
They love complaining about it, it gets them votes, and they get to shut down the government once every year.
(Score: 2, Insightful) by Anonymous Coward on Tuesday October 17 2017, @03:58PM (2 children)
Mmm, the republican approach to financial responsibility: spitting in your soup, then complaining that the waiter spat in your soup. Works every time!
(Score: 0) by Anonymous Coward on Tuesday October 17 2017, @08:17PM (1 child)
The Republican approach to life: "I got mine, screw you."
The Republican approach to paying bills: "Let my neighbor's kids pay for it."
The Republican approach to big government: "DIE BIG GOVERNMENT! DIE DIE DIE! NO MORE MONEY FOR YOU! DIE ALREADY!"
The Republican approach to health care: "We demand death panels! Let them be run by an oligopoly and KEEP BIG GOVERNMENT OUT OF IT!"
...and then they go full retard:
The Republican approach to defense: "Help me big government! The terrorists are attacking me! Protect me! Big government for ever! We love our big government protectors!"
(Score: 2) by tangomargarine on Wednesday October 18 2017, @02:49PM
"...oh wait we control all the branches now? I guess nevermind. Smaller government means less taxes for rich dudes, right? Close enough?"
But we already know "smaller government" just means "less of what the other party likes; more of what we like." Cutting education and healthcare and even more money for our ridiculously overfunded military.
After the bullshit about Republicans complaining about Obama death panels that term has lost all impact on me.
"Is that really true?" "I just spent the last hour telling you to think for yourself! Didn't you hear anything I said?"
(Score: 4, Informative) by tangomargarine on Tuesday October 17 2017, @06:24PM (2 children)
Hey, there's this new crazy idea I've been working on: how much more would revenues increase if we just stopped cutting rich asshole taxes?
"Is that really true?" "I just spent the last hour telling you to think for yourself! Didn't you hear anything I said?"
(Score: -1, Flamebait) by Anonymous Coward on Wednesday October 18 2017, @12:20AM (1 child)
Everybody who is more successful than me is stupid AND evil! How incredibly convenient!
(Score: 2) by tangomargarine on Wednesday October 18 2017, @02:45PM
No, the 1% is a far cry from "everybody who is more successful than me."
And I never said they were stupid or evil; I implied the representatives that keep giving them tax cuts are the stupid ones. It takes some level of competence to stay rich (anybody can win the lottery; it's what you do with it afterwards that says stuff about you).
"Is that really true?" "I just spent the last hour telling you to think for yourself! Didn't you hear anything I said?"