New Trump's tax plan passed
#1
What do you think of it?
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#2
I think the tax plan is a two-edged sword, although I don't want to call it "Trump's tax plan". It's a Republican tax plan, and it's a bit of a compromise.

I welcome the end of the individual mandate associated with the Affordable Care Act. I don't want to see Obamacare undermined any further than it already is, but the mandate was hurting a lot of people. And I read recently that it only raised about 1% of the money required to fund the federal insurance subsidies, so it's not like the mandate was a huge source of revenue for the government.

The mandate is credited with "compelling" young (healthy) people to buy insurance. I don't know how true that is, though. I guess we'll find out. A lot of "young people" start families and take jobs that offer health insurance. This is a very complicated marketplace.

What I am more concerned about is where the Affordable Care Act state-run marketplaces will be impacted. As more insurance companies drop out of the system, more people will lose access to independent health insurance. Now, Medicaid is supposed to step in and protect them. If Trump leaves Medicaid alone I think people will be okay. But they will feel like they are deprived of choices.

The Repatriation of overseas profits for corporations could have a positive impact on the economy. Analysts don't expect much of that money to be invested in workers and jobs, but companies like Apple should begin buying back shares of stock and paying dividends. That money will eventually be reinvested through venture capital firms and major investment portfolios. That COULD have an impact on salaries and jobs in a few years.

If nothing else, the US government may finally collect 15.5% tax on the estimated $2.6 trillion being held overseas.

As for other details of the tax law, I'm not as concerned about the disparity between what the rich people get and what the poor people get. The poorest families pay little to no tax at all. Giving them more would amount to a redistribution of wealth, and there are already tax credits that accomplish this. Unless we decide to implement a "universal basic income" I don't believe we need to increase wealth redistribution at this time.

There is a small stratum of middle class families who will fall on the cusp of some of the thresholds in this tax law. They will not be happy. Their taxes won't improve much and in time they may pay more in taxes than before. We will have to wait and see how many people fall into that group.

I think we'll see changes to the tax laws relatively soon. Everyone will keep talking about the projected $1.5 trillion deficit. Sooner or later new taxes will have to be enacted to pay for that deficit. Even the most conservative Libertarians and Republicans cannot find enough social programs to gut to cover that deficit. They've invested decades in reducing the size of the US government. We have the smallest per capita government since before World War II. It won't be easy to make any more deep cuts anywhere, except in military spending. And conservatives don't usually like to cut military spending.
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