Now, a country that's $20 trillion in debt, heading toward trillion-dollar deficits and governed by lawmakers who can't find a spending program they can live without shouldn't cut taxes without serious offsets. Households making more than about $900,000 a year would see their taxes drop by more than $200,000 on average. As usual, it'll be light on details, but we're told to expect a cut in the corporate income tax rate to 20 percent - as opposed to the 15 percent rate President Donald Trump has promised. That's more than any other state, according to the Tax Foundation, a right-of-center tax policy research organization.
Mr Trump has outlined plans to overhaul America's tax code by proposing sweeping tax cuts in what he termed a "one-in-a-generation" opportunity.
But Rep. Tom Reed, R-Corning, said the package would lower business taxes and those help the economy and the middle class. Hatch and others have described the plan that emerged this week as a broad set of goals, not a detailed plan. But in general, the Democrat-controlled high tax states in West and Northeast claimed more deductions than states in other regions. Because the child tax credit is paired with actual spending (not just a loss in tax revenue), the Tax Foundation estimates that getting rid of it would save $710 billion. Administration officials said Trump's plan would be "at least as progressive as the current tax code". It doubles the standard deduction, increasing the amount of money people can earn tax free up to $24,000 for a married couple.
Although much of the tax plan has not been fleshed out by tax writing authorities, the 9-page framework released by Congressional Republicans includes the elimination of some popular tax deductions enjoyed by poor and middle class American families.
That means no matter how Trump invests his billions-in real estate, bonds, stocks, business ventures, etc. -the income he generates would be taxed at a rate lower than what workers pay on their wages.
While Trump said in his speech in IN that the tax reform plans are about bringing jobs back to the United States and would benefit people such as farmers whose families are hit hard by death taxes, Norquist said he believes the plan best helps people who did not have jobs in the past eight years. For those wealthy taxpayers, their after-tax incomes would increase 8.5 percent next year.
Taxpayers in the bottom 95 percent of income distribution would see average after-tax incomes increase between 0.5 and 1.2 percent.
The more immediate concern in the state's property tax debate, Argall said Friday, is the fate of a proposed amendment to the state constitution that is going before voters in November.
Trump has tried to sell this tax cut by claiming US corporate rates are the highest in the world, making the USA less competitive. Progressives who seek to make the US more like Europe should note that these European countries - such as Norway, Denmark and Sweden - have long decided corporate taxes are a harmful way to pay for large social programs. "By eliminating tax breaks and loopholes, we will ensure that the benefits are focused on the middle class, the working men and women, not the highest-income earners". For example, the group that makes up the largest percentage of IN tax-filers - the 44 percent who earn less than $45,000, would receive less than 6 percent of the total cuts.
"The size of the child tax increase will affect whether a lot of people with kids in the middle class will face a small tax cut or a tax increase", Batchelder said.