With healthcare bill dead, U.S. Republicans turn to taxes

[rooster59]

With healthcare bill dead, U.S. Republicans turn to taxes

By David Morgan

 

House Ways and Means Committee Chairman Kevin Brady (R-TX) speaks with the media as he arrives for the Republican policy luncheon on Capitol Hill in Washington, D.C., U.S., March 14, 2017. REUTERS/Aaron P. Bernstein

 

WASHINGTON (Reuters) - After failing to repeal Obamacare, Republicans in the U.S. Congress quickly pivoted on Friday to President Donald Trump's next priority: overhauling the federal tax code, but their plan has already split the business community.

 

Division among Republicans was the chief cause of the embarrassing setback on Obamacare, and similar fault lines have been evident for months in the Republicans' tax plan, mainly over an untested proposal to use the tax code to boost exports.

 

House of Representatives tax committee Chairman Kevin Brady conceded the demise of a Republican plan to roll back Obamacare could make the path to tax reform harder. "This made a big challenge more challenging. But it’s not insurmountable," he told Fox News after Ryan cancelled a vote on an Obamacare rollback bill.

 

But Brady said he and House Speaker Paul Ryan are all-in on tax reform.

 

Brady said House Republicans plan to begin moving on tax reform this spring and to pass legislation before Congress's summer recess in late July.

 

"We’re going to work with the administration to get this done,” he said.

 

Trump has been unclear about his position on the most problematic feature of the House Republicans' tax "blueprint," a proposal known as the border adjustment tax that would cut taxes on exports and raise them on imports.

 

Treasury Secretary Steven Mnuchin said on Friday that tax reform in many ways is "a lot simpler" than healthcare reform.

 

"We're able to take the tax code and redesign things and I think there is very, very strong support," Mnuchin said at an event hosted by news website Axios.

 

Comprehensive tax reform is a policy goal so complex that it has defied successive Congresses and presidents since 1986 when it was last accomplished under former President Ronald Reagan.

 

The U.S. tax code is riddled with narrow subsidies and loopholes, many of them deeply embedded in the economy and defended by the interests they benefit, such as the mortgage interest deduction and the business interest deductibility.

 

Brady's panel has been working on a plan since mid-2016 that would cut the corporate tax rate to 20 percent from 35 percent, end taxing foreign profits for U.S.-based multinationals and cut other tax rates for businesses and investors.

 

The plan has divided businesses, prompting import-dependent industries to warn of higher prices for consumer goods from clothing and electronics to gasoline.

 

Brady has been adamant that border adjustment will be part of the House tax reform, saying earlier this week that the provision was "a given" for final legislation but would include a transition period for import-heavy industries.

 

 

-- © Copyright Reuters 2017-03-26

 

[tomultmann]

So far the GOP is 0 wins out of 3 my sincere sympathy to the American citizens. But Trump was voted in as president

Sent from my SM-G935F using Tapatalk

[boomerangutang]

The man in the pic, Rep. Brady, is the same fellow who is seen in a photo from yesterday, shaking hands with Trump and smiling like a kid who just got a $50 gift certificate to a candy store.

 

Republicans dealing with taxes means on basic thing:  ease taxes on the rich.  All else is dross.

[blazes]

Countries in those (rather silly) top 10 lists of "happiness" locations are there because the citizens of those countries are prepared to pay high personal income taxes and in return obtain excellent health and welfare services.

 

Until Americans learn to love the word "tax" (and revolt against the insurance companies that dominate the healthcare system) they will be doomed to a life of poverty, middle-class anxiety, and bliss (for the one percenters).  

Edited March 26, 2017 by blazes

[boomerangutang]

20 minutes ago, blazes said:

Countries in those (rather silly) top 10 lists of "happiness" locations are there because the citizens of those countries are prepared to pay high personal income taxes and in return obtain excellent health and welfare services.

 

Until Americans learn to love the word "tax" (and revolt against the insurance companies that dominate the healthcare system) they will be doomed to a life of poverty, middle-class anxiety, and bliss (for the one percenters).  

                You're right.  However, Americans don't have to LOVE the word TAX, but at least acknowledge that taxes pay for necessary things much of the time (roads, bridges, police, army, fire fighters, airports, etc).   

 

         On the other side of the coin, all Americans think taxes are spent wastefully. They have many  reasons to believe that, not least: wasteful spending on military, veterans, politicians, welfare cheats, corporate bail-outs, Wall Street bail outs, do-nothing people, unnecessary wars, etc.   Add to that, Trump and his buddies cheat on taxes and brag about it.  The president is supposed to set an example.  ha ha ha.

 

         Even after acknowledging all the cheating and wasteful spending, a country's government needs taxes to function.  The alternative are places like Libya or Somalia, where it's daily chaos.

 

          As for the US's health care system:  it revolves around insurance companies, so it's based on profit-taking corporations. A better system would divorce itself from insurance companies.  With government running the show, there might be slightly lower quality care, but bureaucrats would put things out to bid, and compel doctors/hospitals/pharma to bring their prices down.  US medical costs are already highest in the world.  

 

 

 

Edited March 26, 2017 by boomerangutang

[craigt3365]

47 minutes ago, blazes said:

Countries in those (rather silly) top 10 lists of "happiness" locations are there because the citizens of those countries are prepared to pay high personal income taxes and in return obtain excellent health and welfare services.

 

Until Americans learn to love the word "tax" (and revolt against the insurance companies that dominate the healthcare system) they will be doomed to a life of poverty, middle-class anxiety, and bliss (for the one percenters).  

The ACA was a god send for many.  But many American's are doing quite well.  I know few in the middle class who have anxiety.  Unless they are spending over their income, which for sure happens.  And yes, the one percenters do have bliss.  Luckily, many of us far from that also have bliss.

[malibukid]

heath care cost in America is way out of control. being billed $100 for an asprin. the insurance companies are eating the middle class for lunch.  many policies do not deliver as promised.  the uninsured are driving up hospital cost as well by ending up in the ER as a last resort, rather than having access to affordable preventive care.

good luck with the tax bill, a lot of its success was dependent upon the passage of the health care bill.  the wealthy need to pay more.  my family forked over literally millions to Uncle Sam.  i saw the tax bill.  they will get you in the end.  if you are wealthy and have prospered because of the opportunities America has given you, you should pay more.  not everyone is born with the brains or talent to make millions and this goes anywhere in the world.  if you are lucky you will be born into a country which will offer the freedom to succeed. 50,000 genes at last count govern intelligence.  it's truly a lottery.  i did this at Uni.  

most American having not studied medicine think all you have to do is pray harder and work harder.  lol

[farcanell]

Lowering export tax and increasing import tax is throwing out tariffs agreements.

 

effected countries need only do the same to re establish the status quo

[Kabula]

They may turn to taxes, but I see similar problems with reducing taxes as the problem they had with health care.

 

With oil prices retreating, forcing the U.S. petro dollar to retreat,  ridiculous U.S. debt, forcing governments to dump U.S. Treasuries and replace SWIFT with their own alternative system, combined with  hyperinflation around the corner, massive job losses with many of the largest brand named stores closing, I don't see too many future promises fulfilled.

 

 Mexico just announced that they're oil industry may be going in the bankruptcy soon, combined with their currency in trouble; so how can I pay for a wall?

 

 However, the reality show can offer entertainment for some and sadness for many.

Edited March 26, 2017 by Kabula

[Grubster]

37 minutes ago, farcanell said:

Lowering export tax and increasing import tax is throwing out tariffs agreements.

 

effected countries need only do the same to re establish the status quo

So lets check how much it costs to export from Thailand to America, against what it costs to import from America to Thailand. China, etc.

[farcanell]

18 minutes ago, Grubster said:

So lets check how much it costs to export from Thailand to America, against what it costs to import from America to Thailand. China, etc.

Good idea.... get back to me with figures.

 

i'll start you off though..... currently the US imports more than twice its exports, so increasing tax on imports will make "stuff" more expensive for the average consumer

 

but, decreasing export tax, may make American made "stuff" more competitive with "Chinese sweatshop" manufactured "stuff"

 

ergo.... America needs more "sweatshops".... cool (well... hot really, hence "sweat").... more jobs for Americans vs Mexicans... hope they are happy with the pay rates.

Edited March 26, 2017 by farcanell

[ilostmypassword]

24 minutes ago, Grubster said:

So lets check how much it costs to export from Thailand to America, against what it costs to import from America to Thailand. China, etc.

What costs are you referring to? Shipping?

 

[Grubster]

9 minutes ago, farcanell said:

Good idea.... get back to me with figures.

 

i'll start you off though..... currently the US imports more than twice its exports, so increasing tax on imports will make "stuff" more expensive for the average consumer

 

but, decreasing export tax, may make American made "stuff" more competitive with "Chinese sweatshop" manufactured "stuff"

 

ergo.... America needs more "sweatshops".... cool (well... hot really, hence "sweat").... more jobs for Americans vs Mexicans... hope they are happy with the pay rates.

Very good thank you as I am too lazy to look it up, precisely the US is importing twice what they export and much of what they export is raw materials, having cheap goods pouring in from China does not help the US worker one bit if he can't find a decent job as his was sent to China for big corporate profits that also do nothing for him/her. I can argue that when the US was Booming and all able bodies were gainfully employed [ late 40s through the 70s] they were exporting double what they imported. Also taxes were much, much higher on the rich.

[Grubster]

12 minutes ago, ilostmypassword said:

What costs are you referring to? Shipping?

 

Tariffs and taxes.

[geriatrickid]

3 hours ago, blazes said:

Countries in those (rather silly) top 10 lists of "happiness" locations are there because the citizens of those countries are prepared to pay high personal income taxes and in return obtain excellent health and welfare services.

 

Until Americans learn to love the word "tax" (and revolt against the insurance companies that dominate the healthcare system) they will be doomed to a life of poverty, middle-class anxiety, and bliss (for the one percenters).  

 

That is an unfounded generalization and it is factually incorrect. In simple terms, you are wrong and have attempted to force your political views on others by misrepresenting  a study that really is  more of an indicator  than anything else. Try reading this as it dumbs down the explanation of what the  review  indicates.

http://edition.cnn.com/2017/03/20/travel/worlds-happiest-countries-united-nations-2017/

 

 

The tax burden in many of the happy countries, falls on the shoulders of a shrinking percentage of the population. For example in Canada, about 55% of the  adult population pays income tax. That means 45%  are not paying any income tax. Of the tax burden, most of it falls on the wealthy. For example in New Zeal, 10% of the population pays about 50% of  all income taxes.  Of course, some people will be happy: They don't  have to pay income pax.

 

The reality is that factors such as family support,  recreation, access to green space, pollution, general health, longevity, human rights  all have an influence on the rating.

[geriatrickid]

1 hour ago, farcanell said:

Lowering export tax and increasing import tax is throwing out tariffs agreements.

 

effected countries need only do the same to re establish the status quo

 

That should be fun. Trump  wants a trade war with Canada. I don't know if the 9 million  American workers who's jobs depend on exports to Canada will agree.

[Grubster]

2 minutes ago, geriatrickid said:

 

That is an unfounded generalization and it is factually incorrect. In simple terms, you are wrong and have attempted to force your political views on others by misrepresenting  a study that really is  more of an indicator  than anything else. Try reading this as it dumbs down the explanation of what the  review  indicates.

http://edition.cnn.com/2017/03/20/travel/worlds-happiest-countries-united-nations-2017/

 

 

The tax burden in many of the happy countries, falls on the shoulders of a shrinking percentage of the population. For example in Canada, about 55% of the  adult population pays income tax. That means 45%  are not paying any income tax. Of the tax burden, most of it falls on the wealthy. For example in New Zeal, 10% of the population pays about 50% of  all income taxes.  Of course, some people will be happy: They don't  have to pay income pax.

 

The reality is that factors such as family support,  recreation, access to green space, pollution, general health, longevity, human rights  all have an influence on the rating.

Don't forget the major shift to user taxes that are the most unfair taxes of them all. User taxes are on nearly everything now. If I make 50,000 per year and drive ten thousand miles to do it, and you make 1,000,000 per year and drive the same then I am paying twenty times as much tax by percentage of income that you are. Remember these user taxes are on nearly everything you do.

[Grubster]

7 minutes ago, geriatrickid said:

 

That should be fun. Trump  wants a trade war with Canada. I don't know if the 9 million  American workers who's jobs depend on exports to Canada will agree.

I don't think there is any chance of a trade war with Canada anytime soon. They are a good trading partner who pays their workers well. Precisely the type of trading partner the US needs. Great Briton should also be. It is those countries with horrible human rights and horrible environmental records that should be tariffed out of our markets.

[ilostmypassword]

One of the few things I found admirable in Trump's tax plans was a proposal to tax carried interest as earned income instead of at the capital gains rate.  What this means is that hedge fund managers and such will have to pay higher taxes on the percentages they earn from their investors' money.  However, it now turns out that this is another Trump scam. In fact, he proposes to create a new loophole that will allow hedge fund managers to keep paying the low tax rate.

"Trump has pledged to close this loophole by treating “carried interest” as ordinary income...

Buried in Trump’s plan is a provision allowing owners of pass-through businesses (which include sole proprietorships, partnerships and S-corporations) to be taxed at a flat rate of 15 percent rather than the regular individual income-tax rates. The investment fund partnerships that currently benefit from preferential rates on “carried interest” would qualify for this special pass-through rate. "

https://www.washingtonpost.com/opinions/think-tax-reform-will-be-easy-for-trump-ha-ha/2017/03/27/8f65e4b4-132a-11e7-ada0-1489b735b3a3_story.html?hpid=hp_no-name_opinion-card-c%3Ahomepage%2Fstory&utm_term=.2c97e6140c4f