Monday, October 23, 2017

Trump Says He May Have to Institute a New Higher Top Tax Rate for Wealthy

President  Trump on Sunday said in an interview with Maria Bartiromo of Fox News that he would prefer not to have what he referred to as a fifth tax bracket but said he wanted “to make sure the middle class gets taken care of” even if that required another category for the "rich."

"If I feel that the middle class is
not getting what I want them to get, and that’s going to be a lot, because I want them to get really a lot. Then I’m going to do a fifth bracket, which will give them more,” Trump said.

Trump is a street hustler and an economic ignoramus. He not once mentioned rolling back government spending as a way to balance tax cuts.



Via Jonathan Swan at Axios:

House Republicans' thinking has changed. Under their current thinking, people who earn between $418,000 and $999,999 will be in a lower tax bracket. But those earning $1 million or more will not.
Opting to keep taxing million-dollar-earners at the current 39.6 percent-rate will help stem the deficit increase from tax cuts for corporations and the middle class.

Caveat: The million dollar bracket plans haven't been finalized and could change this week, as committee Republicans finalize their tax bill during meetings on Tuesday and Wednesday.

Potential blowback: If the Committee Republicans ultimately decide not to cut the income tax rate for million-dollar-earners, much of the Republican donor class and Reaganomics community (including anti-tax activist Grover Norquist) will feel betrayed.

"I understand compromise, but why compromise with the sin of envy?" Norquist told us. "This isn't the dumbest idea I have ever heard of. But it is in the top 20."

Norquist argues this won't placate Democrats — who inevitably will charge that Trump's tax overhaul is just designed to help the rich — but will alienate conservatives.

Meanwhile, one administration official told me Trump doesn't really care about this issue.

"He basically thinks they [rich people] are fine and he believes they don't care that much about the individual rate so long as they get all the other goodies, like the corporate rate and expensing," the official said.

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