Trump's tax plan could cost an estimated $5.5 trillion

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"At a time when we have a rigged economy created to benefit the wealthiest Americans and largest corporations, President Trump's new tax plan would only make that system worse", Sanders said in a statement.

Trump has proposed reducing the number of tax rates from seven to three - 10 percent, 25 percent and 35 percent.

The president would eliminate the estate tax and alternative minimum tax, a parallel system that primarily hits wealthier people by effectively limiting the deductions and other benefits available to them - both moves that would richly benefit Mr. Trump.

Families with after-tax income between roughly $19,000 and $76,000, for example, are now in the 15 percent marginal tax bracket, which is slated for elimination.

It also omits much of the work that Ryan and other Republicans have done to craft a comprehensive plan. At first blush, the tax cuts look smaller than President Ronald Reagan's in 1981, which were the biggest ever.

"Trump is seeking to dramatically reduce his own tax bill", said Frank Clemente, executive director of Americans for Tax Fairness, a left-leaning advocacy group. The reform will result in United States and worldwide companies returning their activity to the USA, thereby increasing employment and greasing the wheels of the U.S. economy. Corporations would not be required to pay taxes on overseas profits.

"It is a budget that is morally bankrupt", Perez said, according to the Hill. Investors have been eagerly awaiting the plan, and many have said renewed expectations for it is why the market has been rising recently. Later, in my opinion, in order to keep activity in their territory, other countries will be forced to cut their taxes even further in order to avoid driving business away from them.

Meanwhile, Trump plans to maintain two of the largest breaks for wealthy taxpayers, the deductions for interest paid on mortgages and contributions to charity.

Trump has proposed ending that state and local tax deduction. One recent well-known example is Mobileye(NYSE: MBLY), which began as an Israeli company in the 1990s, became a foreign company, and then returned to Israel, before being sold to U.S. company Intel. "We know what we're asking for is a big bite".

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The longer that Trump refuses to release them, something every president and every major candidate for the presidency has done for the past 40 years, the more he feeds the suspicion that there's something he's hiding, and maybe a lot of somethings. However, the Trump outline lacks such details as what income would correspond to each individual tax bracket and there is no way economic growth could offset lost revenue.

In California, eliminating the deduction would likely have little impact on the poor or the lower middle class. California's income tax system takes the most from the wealthy. Lawmakers said they were enthused that the president is taking an interest in tax reform.

The possibility of a deficit increase, unacceptable to some Republicans, means that Trump would need to attract Democratic support to make the overhaul permanent. But the vast majority of benefits would accrue to the highest earners and largest holders of wealth, according to economists and analysts, accounting for a lopsided portion of the proposal's costs.

Most states have tied their tax codes closely to the federal code.

One of President Trump's top economic advisers couldn't promise that middle-class families won't pay more if his new tax plan is put in place. Ron Wyden, or OR, ranking Democrat on the Finance Committee.

On the other hand, it would trim other deductions, including for state and local tax payments, a change that could alienate lawmakers in states such as California and NY with higher state taxes.

Treasury Secretary Steven Mnuchin has pledged that the new pass-through rate would be implemented in a way that "won't be a loophole for rich people who should be paying higher rates", but has not released any details about rules that might deter abuse.

The result: The current value of Trump's tax cut plan for the S&P 500 companies is $1.2 billion in extra earnings, or $137.85 a share.

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