Heritage is continuing the fight forward for tax reform this week.

Even though the complete details of the bill have yet to be finalized, both the House and Senate versions have enough in common to reasonably estimate its effect on the economy.

Last Wednesday, Rachel Greszler, a senior policy analyst in economics and entitlements at the Center for Data Analysis, published a report titled “In Charts, How These 7 Taxpayers’ Bills Would Change If Tax Reform Were Enacted” in the Daily Signal.

Each chart shows how different American families would fare under the proposed tax reform.

This is part of Heritage’s continual effort to make Congressional policies transparent to American citizens.

Read how your family would be impacted by the current tax reform plan >>

Even though the plan for tax reform isn’t as pro-growth as it could be, it significantly jump-starts America’s economy, and will lead to long-term growth.

How would you improve Congress’ tax reform plan? Do you think it will pass before Christmas?

Comments (35)

Warren Coats - December 1, 2017

1. partnership and S corp pass through to personal income should be at the personal income rate.
2. Eliminate loopholes for real estate developers.
3. If college tuition waver is added to student’s income (as it should be) allow deductions for education costs (investment in future income) like other businesses (pass through).

john heil - December 1, 2017

understand budget – if you don’t have the money – how are you authorized to get these funds. good example – how did a congressman get $27,000 to payoff an assult on another person. get these loopholes out of congress and if found – disband them from all committees. congress needs to understand – you live by the same rules as we do. – does not happen – MAKE IT HAPPEN. WE HAVE ENOUGH DEBT – CLEAN OUT THESE LOOPHOLES – THEY EVIDENTLY DO NOT KNOW ABOUT – ACCOUNTABILITY.

Mary Carpenter - December 1, 2017

Not exempt any government employee or elected official from laws or programs which apply to the public. They must eat what we eat!
Get the corporate tax rate down as low as possible.
Benefit the middle and lower classes as much as possible, but don’t dump the difference on the rich who already pay 90%+ of all taxes. Good grief! what do they think would happen to the rest of us w/o the top 1-2% carrying the load?

Stinger - December 1, 2017

Everyone has skin in the game!
Personal Income
1. All people with income up to $25,000 (poverty level?) pay $1 in income taxes.
2.Other than personal exemption and child exemptions; NO DEDUCTIONS for anything, period!!!!
3. One tax rate for all, say 10%.
4. All people file on a post cart.
5. Instructions on one 8.5 X 11 page.

Scott Drysdale - December 1, 2017

I could go on and on about how hard my wife and I worked to get where we are. We are both former Army officers. We have paid hundreds of thousands in taxes. We have a combined income of $400,000. We have three kids. Under the tax bills being promoted our taxes are going to go up substantially. I cannot believe that Heritage is pushing these bills. The lower 50% of income earners who don’t currently pay income taxes will… guess what… still pay no taxes. The top 25% of income earners will have their taxes actually go up. Yet, we are the ones who provide savings and investment capital. We are the ones who work the hardest and the longest. We are the ones who are punished by marginal rates as high as 39.5%. For those who actually pay taxes, these bills are better than anything Nancy Pelosi could ever hope to get passed. Our taxes are going to go up substantially. Your sample taxpayers are ridiculous. The lower middle income and lower income people don’t pay taxes and are not a source of capital to drive the economy.
As to the corporate side, this is far, far from a Arthur Laffer type growth package. And, they’re thinking about pushing out the corporate changes to 2019. Ridiculous. They don’t want to lower the rate below 20%, a rate that is still not competitive on the global stage. Guys, if a country out there has an effective tax rate of 19% it’s still better than 20% and these rates are being multiplied by billions of dollars. And, the competition is not 19%. It’s 22%. And that’s the average. There are many, many jurisdictions that have much more favorable rates. Ireland and Lichtenstein are just 12.5% A 20% corporate tax rate is supposed to bring capital back from overseas? Increase capital spending in the US versus outside the US? Stop corporations from changing their headquarters? Nonsense.
Finally, there is nothing. Absolutely nothing in these proposals that eliminates the thousands of pages in the tax code that, again, affect those who actually pay the bulk of America’s income taxes.
And Heritage is championing these bills? Really? I absolutely don’t understand where you’re coming from. Your arguments look as phony as those being espoused by swamp Republicans.

Donald Koop - December 1, 2017

Our income tax code is un-reformable, as is being proved daily by the flapping of wings and gnashing of teeth in the House of Representatives and the Senate.

Both parties claim they want to help the poor and the middle class. The “help” is always in the form of controlling something: tax rates, deductions, exemptions, special benefits, etc. Nowhere in the proposals are there features that will let each of these constituencies decide how best to improve their situations.

It’s time to stop the charade and lay new plans to give the American people a tax code that enables and encourages this self-help and is simple, fair, durable, fiscally sound, and safe. Present efforts are proof that these characteristics cannot be achieved by taxing income. The strategy needs to be a switch to a tax on consumption.

I would urge Congress to do the following:

• Defeat the current effort to reform the income tax code,
• Pass a bill that mandates a conversion from taxing income to taxing consumption by 2020,
• Begin working on the transition immediately,
• Campaign vigorously in the next congressional election on that effort, and
• Keep that promise.
There are several advantages to taxing consumption over taxing income. Perhaps the biggest is that we could no longer be placed in categories of taxpayers to be treated differently from other taxpayers. A consumption tax is paid anonymously so we can’t be singled out. The poor and middle class can decide how to improve their respective situations without congressional control.

An excellent start on the conversion is the FairTax, a progressive tax on consumption that has been ignored by Congress for about twenty years. It calls for the elimination of corporate taxes and frees individuals to achieve better lives – both issues are in tune with stated congressional goals.

The escape for Congress is its ability to claim that, rather than pass another inferior tax on income, it will reverse course and provide something that is really superior for the American taxpayer. “It may take us a little longer but it will be much better: Trust us.” (https://goo.gl/o77ddJ)

Marc Taylor - December 1, 2017

People need to realize that corporations do not pay taxes. They merely pass them on to the consumer. The only people that pay taxes are you and me. There’s already about 50% of the population that pays no income tax and a large percentage of those actually get money back in the form of the Earned Income Tax Credit. I have to laugh when people say that the tax cut will just benefit the rich. The rich are paying the lion’s share of income tax as it is. Furthermore I doubt that anyone here ever work for a poor person.

Randy Leyendecker - December 1, 2017

Do NOT delay the business tax rate reduction. It would help senior citizens who used to itemize deductions if Congress retained the personal exemption and reduced the proposed standard deductions correspondingly. Otherwise we are going to get a healthy tax increase.

Teresa Buhs - December 1, 2017

They MUST get rid of the AMT and bring corporate tax rate down to 15% or 20% TOPS!

Charles Bohle - December 1, 2017

The corporate tax rate should be 5% higher than being proposed. The taxes paid by the top 1% should be increased and there should definitely be a death tax.

The remainder of the tax code should be addressed as the next phase — we need to reduce the total code to less than 1000 pages.

Wanda Olmsted - December 1, 2017

Forced into early retirement due to loss of great job in 2013, as an engineer at Caterpillar. Income limits are placed on early retirees. Ridiculous. Also property taxes and State Tax deductions are important to us as well as mortgage interest. Starting a business is our only hope now. Small business owners with partnership, sole Proprietor and S Corp status file income from business with personal taxes. Not sure how the new tax reforms will affect us. Seniors are important to include in helpful tax reform as many baby boomers are struggling and do make up a large percentage of property owning voters. We actually get out and vote. Where is the help for seniors? Why should we fall into lower class simply because of our age? Social Security is not a gov’t handout. It is our money so why limits on other income earned and possible loss of monthly checks before full retirement age? No one answers that question to my satisfaction. From age 58 to 62 1/2 is a long time when you cannot find employment. Then finally make it to 62 1/2 and find income limits of $16,900 a yr., keep you from working. Can’t live entirely on Social Security. Can’t earn over $16,900 a year or lose monthly checks. What would you do? Age discrimination is very real in corporate America and Social Security program. Not surprised that tax reform bill does not include much help for us early retirees, but sure would be a welcome gesture.

Steve - December 1, 2017

The Heritage foundation’s reporting on this has been a combination of illiterate, dishonest, GOP seal clappers. I have voted GOP my entire life. No more, and never again will I support Heritage.
These proposals are anti- individual, anti- homeowners, and will increase taxes on millions of Americans.
Under Obama, we saw our rates increase as he used the tax code fir redistribution. Obamacare, more of the same, added Medicare due-taxes, added investment taxes. The GOP plans do ZERO to rescind any of that, AS THEY PROMISED. Instead, these proposals raise taxes on millions of taxpayers, and are even more redistributionist than anything under Obama. Newt Gingrich as much as admitted the other day that the GOP did this to avoid criticism from the WaPo and NY Times. So, after getting creamed by Obama taxes the last 8 years, exactly how many republicans voted these people in so that their fear of the press would give us another tax increase?
This bill is a scam, a lot of people will be outraged to see their taxes go up (again!) next year. And why? Because when frauds and cowards like Paul Ryan hear the media say ” tax cuts for the rich” they wet their pants, run into the corner, and start sucking their thimbs.
As disgusting as the GAoP is the lazy conservative media that are not accurately reporting this complete mess.

Judy L Cummins - December 1, 2017

Remove the Death tax…..Estate tax….Inheritance tax…..whatever name you want to call it….Remove it!!!!
It’s one very important thing you can do for many American families.
It is a very wrong headed tax…..a penalty for owning business & saving.
There is a yearly 401K distribution tax….as you age, they tax you more….I don’t know where this came from….but it’s the government stealing more of our hard earned money…..it MUST stop!!

Bill Winters - December 1, 2017

I would trash the whole thing. It is not really tax REFORM. The only real tax reform is The Fairtax. Eliminate ALL income and payroll taxes. Close the IRS. Let me keep my financial affairs private. The government doesn’t need to know how much money I have or how much I am paid to do my job. Eliminate all tax returns. Pay national sales taxes on new retail purchases.

Jacee - December 1, 2017

Scrap the whole thing, eliminate the IRS, fair tax on spending or flat tax of ?% of income per person. No deductions, no loop holes. Send in income amount on a postcard, pay ?%, done.

Steve - December 1, 2017

All one need do is consider the following to realize what a steaming pile this legislation is:
1. It will hurt home values, by eliminating real estate tax defuctions and, at least under the house proposal also the mortgage deductions. Many areas have not recovered from the last housing/ financial crisis– you want to hit homeowners over the head again? Further, the erosion of higher priced homes will carry onto to homes of all values.
2. Private equity, investors will retain all the deductions the GOP is grabbing from individuals. Swelll– so ownership will be cheaper for the private equity or other vehicles that buy 1000s of homes– meanwhile, the GOP begrudges individuals wanting to own their own homes. Homeownership is at its lowest in 40 years– this will make it WORSE. If you think it is better to have a nation of renters, rather than owners, support this piece of trash. I don’t.
3. Look at the proposed rates for individuals, 35% kicks in at $200k under both House and Senate plans. Currently, you don’t reach that until $415k. Add to that, the elimination of deductions, and theGOP plans Scorch the people already scorched by Obama. The GOP plans are not tax cuts, they’re tax increases on the people already paying the vast bulk of the taxes. That won’t help the economy.
The GOP plans are a disgrace.

Frank OBrimski - December 1, 2017

These bills would be tax INCREASES for me and my working class family!!!
None of those 7 cases reflect us at all. What states do “they” live in.
I’ll gladly provide our specifics if you’d like. Schedule A IS NOT a bunch of “loopholes”. The deficit hawks act more like vultures and hyenas. Restore the Schedule A deductions in full; reducing corporate taxes won’t help them if the bill takes money from customers like us!!

Ananta Gopalan - December 1, 2017

Since the corporate tax rate is being taken down (my preference is zero) Congress should have included removal of all subsidies across the board to reduce spending. Spending reduction should have been part of this bill or the budget. We must get serious about spending cuts.

stephen whiton - December 1, 2017

My taxes would go up 400% if they eliminate the deduction for medical expenses and property taxes. We are in our 80s and would suffer greatly based on some of the provisions whch have been discussed.

D Lopez - December 1, 2017

1, Don’t tax social security. Didn’t we already pay tax on that?
2. Perhaps, in order to keep government from taking all the credit for its “generosity” through its various programs, keep the deduction for charitable giving (by individuals)

John Quinn - December 2, 2017

Maybe this tax cut will benefit the average taxpayer, but it looks like it will be at the cost of us old folks. We are in our 80s, my wife is very sick, last year our allowable medical was $10700 (now gone), state tax in MD $5000 (now gone), personal exemptions $8100 (now gone), that’s $23000 gone and standard deduction goes up 12000. I’m short $11000. Seems sick old people will pay for the tax cuts.

William Wangerin - December 2, 2017

Not if you keep screwing around!

Samuel af Ugglas - December 2, 2017

Kill the Tax Code before it kills you!!!
How are those citizens thinking, lowering taxes without changing or scrapping fundamental parts of the Tax Code?
Burn the entire 75.000 pages and start on clean sheet of paper.

Gerry Heinrich - December 2, 2017

I feel my taxes will be about the same .
I am concerned about my adult daughter who became severely ill last year. She has $1k in insurance payments and $8K deductible to pay out of pocket. She is head of house hold. So her deduction does not double, her medical bills cannot be deducted and she can’t even get an exemption for her children.

She gets is making ends meet now but I expect she is going to be paying quite a bit more that she cannot afford.

I would think this would be not good for elderly either.

Fred Gravening - December 2, 2017

I would like to see income tax on Social Security benefits be capped at 50% instead
of the current 85%, and Medicare payments to the government removed as income entirely.

BOBBY E. RICHARDSON - December 2, 2017

I DO NOT BELIEVE ANYONE CAN DETERMINE HOW THE TAX BILL WILL EFECT THEIR INCOME, UNTIL BOTH CHAMBERS HAVE AGREED ON THE FINAL BILL AND BOTH HAVE VOTED AND APPROVED. THEN WE WILL SEE HOW IT WILL EFFECT EACH OF US. THOSE THAT WERE ELECTED TO SERVE AND MAKE THESE DECISIONS WILL NOT BE EFFECTED TO THE DEGREE WE THE PEOPLE WILL BE IN THE END. WE THE PUBLIC, DO NOT KNOW HOW THE LARGE COOPERATIONS WILL BE IMPACTED UNTIL THE FINAL PASSAGE OF SOMETHING HAS BEEN APPROVED. WHAT EVER IS PASSED, I HOPE THESE SECRET FUNDS ARE ELIMINATED THAT WE THE PEOPLE HAVE NOT KNOWN ANYTHING ABOUT. HOWEVER, I AM NOT GOING TO HOLD MY BREATH.

John Briggs - December 2, 2017

(#1) I would entice the companies who have factories abroad to bring them home with steeper tax cuts for a determined time (5 years?) and then return to the new rates that will be established for the “resident” companies. (#2) I would further entice them by offering these factories a zero tax plan for 10 years followed by reduced plan for the next 5 years followed by a return to the same rates as “resident” factories. In exchange for this fantastic zero tax plan, the factories would have to be based in depressed Appalachia or the depressed inner cities. In order to gain the additional “reduced” plan for the additional 5 years, the factory would have to be placed in a depressed inner city location. I know that that gangs and terror groups would be assuredly “antagonistic” towards these factories and its workers. I would have the federal government be cooperative with providing federal police or troops and funds for restoration. How could the dems fight this without looking stupid to their constituents? How could this not attract new votes for the Republican candidates and new members? An overtly positive concrete vision of Trump’s promises to the inner city and America!

Sharon - December 2, 2017

In my case, if giving and medical exemptions are eliminated my taxes would go up.

I’m near the bottom of the middle class. Someone needs to figure how much money it takes to live. A reality check is needed.

Start eliminating the pork.

Lane Nonnenberg - December 2, 2017

People in CA are in for a big surprise when this tax bill hits. We have the highest housing costs in the country and very high state taxes. We can no longer deduct property tax and state income tax. In addition, I believe I won’t be able to deduct fees I pay my financial advisor. Even though my income now comes primarily from investments, I see no way my taxes will go down and only see them going up. Homeowners in our state are in real danger of losing their homes due to the new tax proposals. I say taxes on business should go to 22% and keep mortgage interest, state and local and property tax deductions. The so-called income tax reduction is a joke.

Skip Kern - December 3, 2017

My concerns has been, of late, to eliminate the double taxation of social security benefits. These proceeds were taxed when withheld from paychecks because you never saw the money, except when withheld, and now, if one’s income is greater than a base of $25-$32k, you are taxed again. This punishes the seniors.
My second point being that congress, in one form or another, have raised the debt levels nearly $9T, since Obama was elected and seemingly never blinked; yet now, when we talk “tax cuts” we are overwhelmed by the increase of $1.5T in 10 years no less. That’s $150B a year. With this government that’s merely pocket change.
Let’s talk Real tax cuts shall, not merely trade offs.

William Fowler - December 3, 2017

In my 73yrs, I don’t think I have ever seen such a collection of geldings in one place. In a very short time they have managed to completely destroy the positive plan President Trump proposed. Are they seriousl? 500 pages of garbage to add to the 70;000 already kissing people off.

William Fowler - December 3, 2017

In.my previous post I referenced people being PISSED off, not missed or kissed off. Please don’t edit my posts.

Peter Heald - December 3, 2017

I would pass the Fairtax. I understand political reality only allows for so much change at once but if the economy grows as it should I hope this re-shuffle can be a 1st step to actual reform that will put this country back in dominant position due to the power of a truly unleashed free market.

Nigel Wilson - December 4, 2017

I am married, retired, 70 years old and a resident of NJ. The removal of SALT, Mortgage Interest and Medical Deductions will result in my Federal Tax bill going up by between $20,000 and $25,000. I support Trump’s policies and his efforts to stimulate the economy but it will be hard for those on a fixed income.

Joseph Gerant 111 - December 4, 2017

AP News says these nice reforms will disappear in 8 years and the tax system will have to be redone. Then more crap out of Washington. Get it right and leave alone. If it works.

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