According to Legal Insurrection (LI), Americans can expect to spend more in taxes in 2017 than what they will on food, clothing, and housing combined if nothing is done to reform the system. On Wednesday, President Trump released his tax plan and it couldn’t come soon enough.
“A whopping 31% of the nation’s earnings are confiscated by the government for federal and state taxes for a total of $5.1 trillion. Amazingly, that’s still not enough to pay off state and national deficits,” LI’s report states.
A chart was included via The Tax Foundation:
The Tax Foundation states:
In 2017, Americans will pay $3.5 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total tax bill of $5.1 trillion, or 31 percent of national income.
This year, Americans will work the longest—46 days—to pay federal, state, and local individual income taxes. Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (10 days), and property taxes (10 days). The remaining six days are spent paying estate and inheritance taxes, customs duties, and other taxes.
Tax Freedom Day, “the day when the nation as a whole has earned enough money to pay its total tax bill for the year,” occurred this year on April 23. If things continue as-is, next year, Tax Freedom Day will occur 14 days later on May 7. The latest ever, according to The Tax Foundation, is May 25, 1945, during World War II.
Meanwhile, Trump has released his promised tax reform bill. Here is the one page summary:
There is a lot there to chew on, and many details missing, which will be scrutinized over the next few days, but the cuts appear pretty significant.
In a recent piece for Breitbart, Sen. Rand Paul wrote a scathing rebuke of Republicans failing on tax cuts so far, telling them, “Real men cut taxes:”
Once upon a time, most Republicans believed in tax cuts. Somewhere along the way, inside the beltway especially, Republicans forgot about the benefits of cutting taxes. Republicans became more concerned with government keeping “its” revenue than letting the people keep their money.
Paul’s letter was written the day before Trump released his plan, but he urged the president “to go big and bold.” He wanted Trump to cut the corporate tax rate from 35% to 15%, and Trump has done it. Paul also said every individual American should see a reduction in taxes. Mark Cussen from The Motley Fool created this chart based on the information:
“If you want to drain the swamp, you have to take away money from Washington, and send it back to the people,” Paul said.
Now, let’s see if the Republicans in Congress feel the same.