A Better Tomorrow. Today.

Working Together to Protect Our Children's Future.

Home
About
Our Blog
Contact

People

Help Our People

People

Take care of our people and foster a financially sustainable society that lives within its means. Our national debt increases by more than $15,000.00 every second, and that is just the interest.

Your Name (required)

Your Email (required)

Subject

Your Message

Please leave this field empty.

The Power of a One-Page Tax Reform Plan

When the Trump administration released a one-page handout on tax reform to reporters in late April, the policy summary left much to the imagination. The tax reform proposal outlined broad key points without including critical details and no deadline for passing the legislation. President Trump’s National Economic Council Director Gary Cohn said this tax reform will offer, “one of the biggest tax cuts in the American history.” However, those having to measure the rewards and consequences of the tax reform plan have conflicting views on its effectiveness and potential downfall. Here are the plan’s key goals and how legislators are approaching it.

Tax Reform Policy — Photo thanks to 401kcalculator.org

Details of President Trump’s Tax Reform Proposal

Included in the roughly 100-word tax reform plan would be a double in the standard deduction and a reduction in the number of tax brackets from seven to three for individuals. A campaign promise, President Trump wants to cut the top tax rate for all businesses to 15%, which is drastically lower than the current 35% for corporations. The plan eliminates deductions for taxes paid to states and local governments but maintains those for mortgage interest and charitable contributions. The Alternative Minimum Tax and estate tax will be cut, as well, benefitting the wealthiest Americans. The White House’s tax reform proposal does not include an overall cost estimate, and the Tax Foundation had reported that this plan could increase the deficit by $390 billion per year.

How do Legislators View the President’s Tax Reform?

Although many Republicans in Washington gathered in support of the administration’s tax reform announcement because of its generous tax cuts, many are concerned with the potential impact on the country’s deficit. Some Republicans argue that massive tax cuts could lead to economic growth, but many say that it wouldn’t be enough to combat the potential loss in revenue. However, the majority of Republicans praise the plan arguing that it will lead to economic growth and make businesses more competitive. Through a joint statement, Senators Paul Ryan, Mitch McConnell, Kevin Brady and Orrin Hatch stated, “The principles outlined by the Trump Administration will serve as critical guideposts for Congress and the administration as we work together to overhaul the American tax system and ensure middle-class families and job creators are better positioned for the 21st Century economy.”

Democrats view the tax reform plan as a major cut for big businesses that would lead to extensive gaming of the tax code by lawyers, athletes and others in a position to declare their earnings as business income instead of as a salary. Senate Democratic Leader Charles Schumer stated, “At a time when income distribution is getting even worse in America, the President’s outline clearly makes life easier for the wealthy and special interests and makes life harder for middle class and lower income Americans.”

Loopholes and Complications of the Tax Reform Plan

The tax reform opens up a loophole with a 35% individual tax rate compared to corporations and businesses 15% rate. This presents an opportunity for individuals to claim that they are a business instead and potentially gain considerable financial rewards. The Tax Policy Center estimated that this loophole could reduce taxes collected by the government by $2.6 trillion dollars over 20 years. The President’s business empire could greatly benefit from his own tax reform as well with the plan’s large cuts to income tax rates for top earners. Although the details are still unclear, the President could avoid paying millions through such tax reform.

What’s Next for Tax Reform?

Amid a seemingly ever-changing news cycle out of Washington, House Speaker Paul Ryan has told reporters that tax reform legislation will be completed by the end of the year. If completed, it would be the first overhaul of the tax code since 1986. A Better Tomorrow Today is a platform for Americans to voice their political desires and seeks to position the United States as a leader in global political, economic and scientific communities. A Better Tomorrow Today encourages citizens to support candidates who work toward instituting a stronger and more just tax, environmental, and campaign-finance policy. To join our cause and stay updated on core issues, contact us today.

Will President Trump Embrace or Walk Away from Paris Climate Agreement?

Throughout his campaign trail, U.S. President Donald Trump promised to deliver massive environmental regulation rollbacks, including the country’s withdrawal from the landmark Paris climate agreement. The promise is now front and center as the administration deliberates the future role of the US in the treaty. However, key influencers in the White House stand at odds with each other when it comes to this monumental environmental pact.

The Paris climate agreement, enacted a year ago by nearly 200 countries, represents the global community’s goal of combatting climate change by reducing carbon pollution. President Trump has already made waves in erasing former President Barack Obama’s environmental legacy by making major cuts to the Environmental Protection Agency and installing climate science skeptic Scott Pruitt as the agency’s Administrator. Within his first 100 days he also signed executive orders to revive two oil pipelines and ignite the dwindled coal industry. These measures make it increasingly challenging for the U.S. to meet our first Nationally Determined Contribution (NDC) of the Paris climate agreement of a 26-28 percent reduction in greenhouse gases by 2025 compared to a 2005 baseline.

As the administration reviews the potential pros and cons of U.S. participation in the Paris climate agreement, there is no clear view yet into what President Trump may decide to do. White House spokesman Sean Spicer said that a decision on the Paris climate agreement would be made before the G7 summit in June.

Key Influencers Swaying Trump to Abandon Paris Climate Agreement

Chief strategist and former chief executive of Breitbart News, Steven Bannon has strongly encouraged the President to deliver to his core supporters on withdrawing from the Paris climate agreement. During his tenure at Breitbart News, Bannon published countless articles denouncing climate change science as a hoax. Sharing that doubt is EPA head Pruitt, who has sued the very agency he now leads 13 times as Oklahoma’s attorney general. Pruitt has stated that the U.S. needs to exit the Paris climate agreement, reflecting the views of his powerful conservative political connections.

President Trump has also cited the Institute of Energy Research, partly funded by Charles and David Koch, as being influential in sharping his energy and climate proposals, specifically to withdraw from the pact.

Motivators on Remaining in the Paris Climate Agreement

White House advisors first daughter Ivanka Trump and son-in-law Jared Kushner have advocated for the President to stay in the agreement. Also voicing his support of the Paris climate agreement since his appointment is Secretary of State Rex Tillerson. The former chief executive of ExxonMobil has stated that the U.S. should “keep a seat at the table” because the pact aids the U.S. in international relations and future negotiations. Withdrawing from the accord could present substantial diplomatic repercussions that would negatively affect the administration’s ability to make international agreements with our allies and partners.

Many forces outside the White House are also voicing their support for staying in the Paris climate agreement, yet negotiating smaller U.S. requirements. Germany’s Chancellor Angela Merkel wrote President Trump a letter urging him not to pull out as the nations work to “tackle the great challenges of our time.”

Powers from big oil companies such as ExxonMobil, Chevron, Royal Dutch Shell and BP continue to support the Paris climate agreement. Although their support may be surprising at first, these energy companies have expressed their interest in remaining within the pact because they also retain investments in natural gas, which is a growing economic area for them. Natural gas company Cheniere Energy wrote the White House a letter stating the Paris climate agreement is a “useful instrument for fostering demand for America’s energy resources and supporting the continued growth of American industry.”

The United States’ Place in Global Climate Change

Although China is the largest emitter of greenhouse gas emissions, the U.S. is in a close second place. The Paris climate agreement has non-binding targets that are determined by each country in the pact, and reflects the most ambitious goal at cutting emissions as possible. The agreement also fuels innovation in technology for low-carbon solutions and renewable energy investments.

The protection of the environment is a common concern to all people around the globe as it affects every country. Changing weather patterns, rising sea levels and more extreme weather events continues to increase due in part to greenhouse gas emissions. Working to help the U.S. create a stronger and more just nation, A Better Tomorrow Today (ABTT) is a platform for the American people to voice their political desires. Empowering citizens to support candidates who will work toward promoting environmental, tax, and campaign-finance reform, A Better Tomorrow Today seeks to position our nation as a leader in global political, economic and scientific communities. To join our cause and stay updated on core issues, sign up for our newsletter by clicking here.

Latest Health Spending Projection Shows Higher Spending Growth Ahead

The Center for Medicare & Medicaid Services (CMS) released its National Health Expenditure (NHE) projections for 2015-2025. National health spending is important for the federal budget given all of the different ways the federal government provides or subsidizes health care.

Is the U.S. the Highest Taxed Nation in the World?

As he accepted the Republican nomination for president, Donald Trump stated that “America is one of the highest-taxed countries in the world,” while promoting his tax cut proposal.

The Long-Term Outlook Could Be Even Worse Than CBO Says

The Congressional Budget Office’s (CBO) long-term outlook shows debt nearly doubling as a percentage of Gross Domestic Product (GDP) over the next 30 years, but that projection may rely on optimistic assumptions. In general, CBO’s current law baseline assumes that policymakers will break with typical historical experience in some cases.

Themeisle

Secondary Menu

Parallax One powered by WordPress