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Trump tax plan is best for Trump, wealthiest Americans — Surprise

Trump tax plan is best for Trump, wealthiest Americans — Surprise”

Trump wants to slash that down to 35 percent, and he could potentially raise the threshold where that rate kicks in.

The tax overhaul would create a preferential tax rate for income generated by so-called "pass-through" businesses - of which Trump owns a lot.

One of the key points in the reform plan is a reduction in the corporate tax rate to 20 percent, from 35 percent.

In the remarks, Trump is expected to highlight a provision that would allow businesses for the next five years to write off the full cost of new equipment in the year it's purchased.

"Tax reform will protect low income and middle income households, not the wealthy and well-connected". It is an invitation for companies to shift operations and headquarters overseas. Under the current worldwide system, US multinational corporations pay domestic tax on foreign earnings, which creates a competitive disadvantage for them. Of course, the plan is also geared towards reversing "offshoring", - where companies leave the U.S. for better tax environments - by bringing back trillions of wealth in from overseas back to the United States. Meanwhile, the nine-page framework released on Wednesday predicted the wealthy would benefit but stipulated that they shouldn't benefit more than anyone else.

Trump wants to sign tax legislation into law by the end of the year.

The plan offers a one-time repatriation tax, enticing companies to bring offshore profits back to the United States. "This from the patron saints of lower taxes, cure the common cold". The committees will determine these rules.

The President also announced hefty tax cuts for businesses and individuals which would almost double the personal tax-free allowance to $12,000. And, it doubles the standard deduction for individuals and families, raising it to $12,000 a year for single filers and $24,000 for married couples.

In 2018, 12 percent taxpayers will get a tax hike and by 2027, 25 percent will.

More than 50 percent of taxpayers in Reps.

But host George Stephanopoulos, a veteran of the Bill Clinton administration, pointed out that with the elimination of federal deductions for state and local taxes, many in New York City - and in other high-tax areas of the country - might actually pay more. Parents who qualify for the child tax credit can now receive a benefit of $1,000 per child.

It also eliminates most itemised deductions with the only deductions specifically preserved in the plan being those for charitable gifts and home mortgage interest.

Financial markets rallied on the plan's unveiling, an event long anticipated by traders betting that stocks would benefit from both faster economic growth and inflation. About 100 people turned up with signs to show their displeasure, talking about tax breaks for the rich and how the country would be better with a higher tax burden on people who make more money.

The AMT was created to ensure the United State's super rich do not pay a lower rate because of deductions, but in practice it tends to hit taxpayers roughly in the $200,000 to $500,000 range, in particular people in high tax states and in larger families.

It's good to know that the Trump administration has the same approach to tax reform as they do to health care. Republicans and Democrats should work together to make sure the reforms are real, fair and effective.



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