Tax Analysts Blog

Tax Analysts is an independent, nonpartisan policy organization dedicated to tax systems through an open, informed, and expert understanding of federal, state, and international tax policy.

Wage Credit Is A Simple Solution For Tax Reform Of Passthrough Businesses, But Greed Gets In The Way

Wage Credit Is a Simple Solution for Tax Reform of Passthrough Businesses, But Greed Gets in the Way

For years—especially since the Republican Congress and President Obama agreed to extend the Bush tax cuts to all but those in the highest brackets — passthrough businesses have been bemoaning their potentially unfair treatment under the next tax reform.

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Will Republicans Ever Be Able To Focus On Tax Reform?

Tax reform is hard work, despite what President Trump said during the House’s attempt to repeal Obamacare. It requires filling in a lot of details and anticipating opposition from business and interest groups that don’t like the idea of winners and losers. Despite talking about tax reform as a centerpiece of their agenda since 2010, the GOP really hasn’t done much of the work to build support within their caucus and the public at large for a real plan.… Read more

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Bannon’s 44 Percent Rate Would Undo Decades Of Republican Policy

After failing spectacularly on healthcare reform, the Trump administration and Republicans in Congress will now turn their attention to taxes. President Trump is stumping for a tax cut as the signature achievement of his first term. But forces inside the White House have a different idea in mind. Chief Strategist Steve Bannon is reportedly pushing for a 44 percent top tax rate on incomes over $5 million. 

Bannon sees a high tax rate on the wealthy as the centerpiece of populist tax reform. It would deliver on Trump’s promise to legislate on behalf of the working class, and it would raise funds needed to lower other tax rates (although we don’t know what Bannon’s thinking is on those other rates). Bannon’s position on the top rate is at odds with previous proposals from Trump (which all called for a 35 percent top rate) and, not surprisingly, congressional Republicans. However, it is similar to a proposal from Trump’s former opponent.… Read more

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