President CollinMatthew (D-IN) proposed budget for January 2020 passes
Section 1: Revenue
1.a: The top 2 income tax brackets will see an increase of 2%. (estimated revenue: $35 billion per year)
1.b: All charitable deductions for noncash contributions are hereby eliminated ($28.9 billion on average)
1.c: Corporate tax rate increased from 21% to 25%. ($85 billion per year)
1.d: Increase gas tax by 5 cents and index to inflation. ($22 billion per year)
1.d: The Tax Cuts and Jobs Act of 2017 made several changes to the personal income tax code. It lowered personal income tax rates, increased the standard deduction, limited certain itemized deductions, and expanded business deductions. Most of these provisions are set to expire after the 2025 tax year. This section repeals all of the temporary personal income tax provision in the TCJA beginning in the 2020 tax year. ($42.4 billion per year)
Section 2: Defense Department changes
2.a: The Air Force currently deploys a variety of long-range bombers including the B-52H, B-1B, and B-2A. These bombers are projected to fly until at least the 2040s. The Air Force has begun development of a new bomber, the B-21, that would eventually replace the current bomber fleet. This policy delays development of the B-21 until 2028. (saves 6.9 billion per year)
2.b: Since the Cold War, the U.S. has maintained three distinct methods for deploying nuclear weapons. The nuclear triad consists of intercontinental ballistic missiles (ICBMs), submarines capable of launching ballistic missiles (SSBNs), and long-range bombers. The Department of Defense is planning to replace a portion of its ICBM arsenal. The Ground-Based Strategic Deterrent (GBSD) program will design and build new ICBMs to replace existing Minuteman III missiles. This policy cancels the missile portion of the GBSD program. ($4.71 billion per year)
2.c: The U.S. navy's 2019 ship building plan calls for 301 new ships to be built over the next 30 years. The plan would require the federal government spend 80% more on ship building than they have over the last 30 years (adjusted for inflation). This policy caps ship building spending at the historical 30-year average. ($11.1 billion per year)
2.d: Places cap on defense spending at $700 billion starting 2021.
Bill passes 15-9, I hereby sign this legislation into law.
President CollinMatthew
The Tax Reform Act of 2020 proposed by @Sec. of Economy Cade (D-AZ)
To amend the Internal Revenue Code of 1986 for the purpose of simplifying taxation, converting the federal income tax into a consumed income tax, cutting the corporate income tax, and removing redundant provisions.
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IN THE CONGRESS OF THE UNITED STATES
FEBRUARY 7, 2020
Mr. HOLBROOK (for himself, Mr. STARRO, Ms. EMMA, Mr. SKAPSKI, Mr. SEAN, Mr. MATTHEW, Mr. ITACHI, and Mr. LIBERTAD) introduced the following bill;
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A BILL
To amend the Internal Revenue Code of 1986 for the purpose of simplifying taxation, converting the federal income tax into a consumed income tax, cutting the corporate income tax, and removing redundant provisions.
Be it enacted by the House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Tax Reform Act of 2020”.
SEC. 2. CONSOLIDATING RATES AND BRACKETS FOR INCOME TAXATION.
“Income Tax — There is hereby imposed on the taxable income of every individual a tax determined in accordance with the following table:
If taxable income is: The tax is:
Not over $55,000 10% of taxable income.
Over $55,000 but not over $110,000 $5,500, plus 24% of the excess over $55,000.
Over $110,000 but not over $165,000 $18,700, plus 28% of the excess over $110,000.
Over $165,000 but not over $220,000 $34,100, plus 35% of the excess over $165,000.
Over $220,000. $53,350, plus 40% of the excess over $220,000.”
“In General. — There is hereby imposed for each taxable year a tax equal to 5 percent of an individual’s net investment income for such taxable year in excess of $10,000.”
“(f) Cost-Of-Living Adjustment — Not later than December 15 of 2021, and each subsequent calendar year, the Secretary shall prescribe a threshold which will apply in lieu of the threshold “$10,000” in subsection (a) with respect to taxable years beginning in the succeeding calendar year, in the manner described in section 1(f)(2).”
“(1) Basic Standard Deduction — For purposes of paragraph (1), the basic standard deduction is $10,000.”
SEC. 3. REPEALING UNSATISFACTORY AND REDUNDANT PROVISIONS.
SEC. 4. SAVINGS AND INVESTMENTS DEDUCTION.
“SEC. 225. SAVINGS AND INVESTMENTS.
(a) In General — There shall be allowed as a deduction the net savings and investments made within the year in—
(b) In General — The term “net savings and investments” means the sum of purchases and deposits, less the sum of sales and withdrawals.”
SEC. 5. EXECUTIVE PAYROLL TAX.
“(d) Exceptionally High Wages — In addition to the taxes imposed by the previous subsections, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to 20 percent of the wages in excess of $1,000,000 (as defined in section 3121(a)) paid by the employer with respect to employment (as defined in section 3121(b)).”
SEC. 6. ENACTMENT.
Effective Date.—The amendments made by this act shall apply after January 1, 2021.