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Sen. Kamala Harris proposes The LIFT Act

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Sen. Kamala Harris proposes The LIFT Act
« on: October 22, 2018, 03:42:11 PM »
https://www.bustle.com/p/what-is-the-lift-the-middle-class-act-kamala-harris-has-a-bold-tax-reform-proposal-12606048

As the latest Democratic response to last year's watershed GOP tax bill, Sen. Kamala Harris has introduced LIFT, a tax plan that she says would bolster the middle class. The legislation, titled the LIFT (Livable Incomes for Families Today) the Middle Class Act, seeks to provide a tax credit up to $6,000 for lower- and middle-income households, as well as represent a massive wealth redistribution effort if enacted.

"Our tax code should reflect our values," Harris said in a Thursday press release, "and instead of more tax breaks for the top 1 percent and corporations, we should be lifting up millions of American families."

LIFT would provide refundable tax credits for people in the lower and middle classes. Households that earn less than $100,000 a year would receive a credit of up to $6,000 a year, while single filers that earn less than $50,000 a year would receive a credit of up to $3,000.

This proposal is bold, at least when compared to the current system. A tax credit directly reduces the amount of taxes you have to pay, dollar for dollar. In other words, if you owe $2,000 in taxes and get a $100 credit, you'd instead pay $1,900. That's more significant than a tax deduction, which is taken away from the income you report so that you're taxed on a smaller amount and can keep more of what you earn. If you get a $100 deduction and you're in the 15 percent tax bracket, for example, you'd pay $15 less in taxes.

Even more significant, though, is the fact that the tax credits would be refundable. A majority of tax credits are nonrefundable, in which case your benefit maxes out once your tax burden sinks to $0. Refundable credits, on the other hand, are provided in total; if you owe $2,000 and get a refundable $6,000 credit, you would be given an additional $4,000. That's some serious wealth redistribution right there.

It's redistribution on the scale of last year's GOP tax plan, you could argue, since the Institute on Taxation and Economic Policy's (ITEP) analysis showed that the two plans cost about the same, according to The Atlantic. The main difference is that the GOP bill is currently shifting money into the hands of the upper class, while Harris says that her plan will shift money to the lower and middle classes...............
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Re: Sen. Kamala Harris proposes The LIFT Act
« Reply #1 on: October 22, 2018, 04:07:45 PM »
100% for this

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Re: Sen. Kamala Harris proposes The LIFT Act
« Reply #2 on: October 22, 2018, 04:21:49 PM »
Sounds great to me.

Propeus The Fallen

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Re: Sen. Kamala Harris proposes The LIFT Act
« Reply #3 on: October 25, 2018, 06:23:28 PM »
Okay, someone is earning her way to getting my vote.

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Re: Sen. Kamala Harris proposes The LIFT Act
« Reply #4 on: October 25, 2018, 08:35:34 PM »
Okay, someone is earning her way to getting my vote.
 

Yeah, this and her support of Medicare For All are significant steps in that direction. Assuming she is playing it straight.
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XerxesTWD

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Re: Sen. Kamala Harris proposes The LIFT Act
« Reply #5 on: October 30, 2018, 06:25:50 PM »
This could help a lot of Americans.