My grand theory that “any law that can be passed already has been passed” seems to have been proven wrong. Both the House and the Senate have passed significant changes to U.S. tax rates, at least on business, but the changes are at least slightly different? When does the final bill reach the Trumpenfuhrer in the Reich Chancellery?
My Facebook friends are preparing for Armageddon. Here is a sampling:
[from a university professor who is guaranteed to get a paycheck until she is too senile to navigate into the office (i.e., she has tenure)] I just got out of a meeting of shell-shocked professors and deans, staring wide-eyed at the disaster that is about to befall higher education in America.
My physician friend explains how the GOP tax bill has the potential for catastrophic effects on her patients’ health, and describes her experience when calling various senators about the bill’s implications.
If you have Republicans representing your interests in government, please read about how they are stampeding to screw 99% of their constituents over with a tax bill they dare not debate in public, and which the father of Reagan’s tax bill regards as insane in its particulars.
To my friends in states with GOP senators who are wavering on this catastrophic tax bill, thank you for calling them!
The tax “reform” plan is as dumb and evil as the health care “repeal and replace” plan. Getting rid of the estate tax, which only affects the very wealthy, will be expensive.
… as a Middle Class New Yorker I am angry that I will face a tax increase under the Republican Party’s “soak the middle class” tax plan.
[from a former university professor] Speaking of taxes, this might be a moment to remember that the lying, treasonous, self-dealing, justice-obstructing, nepotistic, emolumental, sexually abusive moron has never published his.
From what I have heard, it is unclear why this is a disaster. Tax rates for both corporations and individuals will end up pretty close to what the UK runs (some of their personal income tax rates seem higher than U.S. federal rates, but when you add in what U.S. states and cities charge, the overall government rake should be the same). Why shouldn’t our government be able to live on what is sufficient to feed the UK government? Especially given the fact that the UK government rolls health care into their direct government spending. (I guess one could argue that the U.S. government is spectacularly inefficient compared to European counterparts and therefore needs a larger percentage of GDP.)
One question is what the real tax rates will be. Alternative minimum tax has been retained for both individuals and corporations? If so, how can anyone who is not a CPA even estimate his or her tax liability?
Estate tax is gone or not? (If so, there will be a lot accountants and lawyers needing to find new work! Most of the estate tax workarounds rely on professional advice.)
How about the hedge fund managers’ favorite tactic of stuffing all earnings into a Bermuda insurance company and thus deferring income tax liability for 50 years? Is there anything in the bill to make that tougher? (see also New York Post)
What about taxing the bogus “free tuition” that universities pretend to give graduate students? NSF and DARPA fund a lot of graduate students. Presumably they aren’t going to want to see their budgeted funds drained away by the IRS and put back into the Treasury for other agencies to spend. (See Ugliest part of the Republican tax plan: What if universities were forced to calculate the value of a graduate education?)
Readers: Does the stock market go crazy after this? Or are most publicly-traded companies already so good at tax-avoidance that the cash differences will be minimal?
- Harvard econ prof on how the old tax rates discouraged moderately successful Americans from working (people not rich enough to bring in the lawyers, accountants, and Bermuda insurance vehicles)
- What happens to the charity industry if the Republican tax plan goes through?
- Why young people don’t like the Republican tax plan: they are planning to be W-2 wage slaves
- The Republican tax plan was written by divorce litigators?