Be wary of White House claims about tax plan

President Trump's Team Unveils Tax Reform Proposal

Grover Norquist, president of Americans for Tax Reform, praised Trump's proposal.

It also omits much of the work that Ryan and other Republicans have done to craft a comprehensive plan.

Alan Cole, an economist at the right-leaning Tax Foundation, has calculated that Trump's corporate tax cut alone would cut federal revenue by $2 trillion over 10 years. "The plan cuts taxes for businesses and individuals and simplifies the code so Americans can file on a postcard". One idea worth trillions is a cap I developed with Marty Feldstein and Dan Feenberg to limit the total value of major tax preferences as a share of income.

I'm not going to hold my breath waiting for that though.

There are fewer individual income tax brackets.

. The proposal is short on details, but among other things, it calls for a reduction in the corporate tax rate, from 35 percent to 15 percent.

President Donald Trump's plan to overhaul the nation's tax code could provide significant tax cuts for the working-class voters who elected him, but the unknowns could end up hurting many of these core supporters of the president.

It (almost) doubles the standard deduction.

. The average amount of the deduction was $12,400, according to the analysis.

"The biggest item that they're talking about eliminating are state and local income taxes and so all of us, here we are in OH, you may pay taxes to the City of Youngstown, to Ohio".

I'm curious where the 10 percent bracket starts because married couples who together make $18,651 - $75,900 are in the 15 percent bracket. A proposal to cut inheritance taxes, for example, is of high interest to auto dealers, which are often family-controlled enterprises.

Trump says he will release tax reform package next week
The current corporate tax rate is 35% and each percentage-point cut reduces federal revenue by $100bn, according to WSJ analysis. But Trump claims the regulations have had the opposite effect, while also limiting access to credit for many Americans.

Where will the 25 percent bracket begin?

It would eliminate the estate tax and reduce taxes on investments, typically paid by the rich.

"The deductions, except for charitable and mortgage are going away, including your state and local tax", said John Miller, who oversees $120 billion of municipal bonds at Nuveen Asset Management in Chicago. Thoughtful reforms can improve health outcomes, encourage work, strengthen retirement security, and reduce the long-term debt all while protecting the most vulnerable. Most middle-class folks don't do much itemization unless they are self-employed and then it is vital.

Also limiting the economic benefit is that given the budget rules for deficit-financed tax cuts, like Trump's plan, they will have to expire a decade from now. Yet Viard says deductions that aren't favored should be eliminated, but those that are valid shouldn't be negated with an alternative tax. "In fact, we don't want to do that", he said. But here's what we know.

For too long, America's out-of-date and overbearing tax system has put a damper on economic growth while punishing savings and investment. Other open questions include the low-income housing tax credit, an unlikely target as it has wide bipartisan support and is the key funding mechanism for most affordable housing built in the United States. There are millions of these businesses, known as "S Corporations", and they are often small, family-owned firms.

We're going to repeal the death tax.

But the true effect of this tax cut will depend on how the Trump administration defines a small business owner.

Trump's plan is supply-side economics on steroids, and will fail even more miserably. Currently, that rate is only available to businesses that make $50,000 or less. President George W. Bush's 2001 and 2003 tax cuts were also followed by large deficits.

During the campaign, Trump released a tax proposal that would eliminate the personal exemption.

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