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he President-elect has suggested a simplified income tax schedule. He has proposed just three progressive tax tiers (12%, 25%, and 33%), with the vast majority of Americans paying less in income tax than they are now.
To address the issue, the Department of Labor proposed a rule that will require all financial advisers handling retirement accounts to put their clients’ interests first. President Barack Obama backed the proposal, saying the law would prevent conflicts of interest that cost Americans billions of dollars in fees each year.
Trump has not commented on the bill. Republicans, however, have already tried to block the rule and a Trump economic adviser has criticized the legislation. Congress could scrap the proposal before it goes into effect in 2018.
he President-elect has suggested a simplified income tax schedule. He has proposed just three progressive tax tiers (12%, 25%, and 33%), with the vast majority of Americans paying less in income tax than they are now.
To address the issue, the Department of Labor proposed a rule that will require all financial advisers handling retirement accounts to put their clients’ interests first. President Barack Obama backed the proposal, saying the law would prevent conflicts of interest that cost Americans billions of dollars in fees each year.
Trump has not commented on the bill. Republicans, however, have already tried to block the rule and a Trump economic adviser has criticized the legislation. Congress could scrap the proposal before it goes into effect in 2018.
How does the fiduciary responsibility issue tie into income taxes? That argument is a bit of a slippery slope - if the advisers can only provide an offering that is in the client's best interests, that eliminates a lot of choice in the market, as well as putting their business model at risk.
I'm for cutting everyone's income taxes, but I'd like to see more targeted relief at the bottom.
I'm for cutting everyone's income taxes, but I'd like to see more targeted relief at the bottom.
Not sure how you define bottom, but it's quite possible for a family of four with an income of $75k year to not pay a dime, other than FICA. Pre-tax health insurance payments/HSA, minimum deposits to 401k, standard deduction, personal exemptions, child tax credit. Very easy to zero out taxable income at the level.
To-wit:
$75,000.00 - Income
-12,700.00 - Standard Deduction
-16,200.00 - Personal Exemptions
-x6,000.00 - Pre-tax health insurance
-x5,000.00 - HSA deposit (max $6,750) -x5,000.00 - 401k deposit (max $24k per wage earner)
$30,000.00 - Net Taxable Income
$x3,581.00 - Federal Tax -..2,000.00 - Child Tax Credit $x1,581.00 - Federal Tax
A net federal tax of $1,581 for a family four isn't particularly burdensome, imo. I am very suspicious of any so-called tax breaks for the middle class. They've got a lot of them, right now.
Keep in mind, after FICA, federal taxes, and tax deferred deposits, that family's take-home (assuming no state tax) is about $56,683/yr, or $4,723/mo. Maybe not wonderful but they ought to be able to eat, pay rent, run cars, buy clothes, pay for TV/cell phones on that - and they are saving at least $5k/yr in their 401k, and another $5k year in HSA which may or may not be spent.
People below that income level with children may pay FICA, but then get it back via refundable Earned Income Tax credits. I am very skeptical of so-called tax cutting for those in the lower income brackets. Last time that happened w/Reagan, many, including me, ended up paying more.
Under trump some people are going to pay more
And think he would like to cut more deductions
See Michael Kitches latest column
Or a couple of posts prior
Good breakdown of Trump's brackets to current ones...
[quote=2sleepy;46457475]I don't post fake news...but why didn't you check it out yourself before jumping in with that comment?
Sam Johnson Unveils Plan to Permanently Save Social Security | Congressman Sam Johnson[/
His plan seems reasonable unlike your previous post which claims the GOPs are crazy enough to go after Social security. Maybe not fake news but borderline irrational. Yes social security needs fixing. But I don't hear you complain about the upper limit they raise on income to be taxed for SS. It's effectively a tax raise on middle class. God forbid this happens under Obama.
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Trump and Retirement
