Washington, D.C. — There’s no better time to get on the tax bandwagon than right now, as the nation’s tax code is being gutted in an effort to reach a balanced budget.
That means lowering rates across the board and getting rid of tax deductions and loopholes.
And that means lowering taxes on all Americans — especially middle-class Americans who pay the bulk of their income in taxes.
The new proposal unveiled by the White House and Senate Finance Committee Thursday would end most deductions, raise the capital gains tax, and eliminate tax-free savings accounts for most Americans.
“We’re going to get to a point where we can say to the American people, ‘If you’re in the middle class, you don’t need to worry about taxes.
We’ll be your best friends,'” said White House Budget Director Mick Mulvaney, who is leading the effort.
“We’re not going to raise taxes on the middle classes, but we’re going get rid all of the deductions that help the middle and lower classes.
It also eliminates the estate tax, which is aimed at helping the wealthy. “
The proposal calls for eliminating the tax break that helps families pay the mortgage for a home, and then making other deductions for college tuition and health care.
It also eliminates the estate tax, which is aimed at helping the wealthy.
It would also eliminate the child tax credit and the child allowance, which help middle- and low-income families with children, but are also important to those earning more than $1 million.
Democrats in Congress have been working to extend the debt ceiling until Sept. 30, and they’ve been unable to get anything done, but President Donald Trump has already said he will veto the bill.
Mulvaney said in the speech Thursday that the goal of this plan is to bring the deficit under control by ending the deductions for mortgage interest, charitable contributions, and child care.
The Republican proposal would eliminate the tax deduction for state and local income taxes, eliminating the state and city tax deduction, and making the top bracket on those deductions $10,000.
The top rate on capital gains and dividends would also be eliminated.
This plan also would eliminate tax breaks that help middle class families, including the mortgage interest deduction, the charitable contributions deduction, a tax break for health insurance premiums and deductibles, the state child tax benefit, the child care credit, the mortgage deduction for homeownership, and a tax deduction on education expenses.
With the tax reform effort now complete, the White Houses will be able to move on to the next step in its process.
Republicans want to spend next week preparing a proposal to pay for the rest of the government, including funding the government through Sept. 15.
If they get that done, then they can pass the tax bill into law and end the fiscal cliff, which means that the federal debt will be cut in half by the end of the year.
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