Trump tax plan stands to benefit the man in the White House
- Author: Zachary Reyes Apr 28, 2017,
Apr 28, 2017, 6:43
Trump's Plan Is "A Radical Reordering Of The Tax Code That Would Significantly Benefit The Wealthy".
The one-page proposal outlined by the Trump administration Wednesday has something for everyone massive tax cuts for businesses and a bigger standard tax deduction for middle-income families, lower investment taxes for the wealthy, and an end to the federal estate tax for the superrich like the president and his family.
Trump's new tax "plan" (more like an extremely vague plan for a plan) is an irresponsible, shameless, budget-busting gift to zillionaires like himself.
You would think that the Trump administration, with so many émigrés from the business world, could at least perform simple arithmetic.
"Certainly losing deductibility of state and local taxes would hurt states like New Jersey and NY that have high taxes", Christie told reporters Thursday after a speech to the Commerce and Industry Association of New Jersey.
Treasury Secretary Steve Mnuchin can not say for sure if President Donald Trump's new tax overhaul will benefit the middle class. In addition, the proposal would eliminate the estate tax, benefiting only a tiny number of super-rich heirs because estates up to US$5.49 million are already excluded.
Criticism of global trade was paramount in Trump's appeal to voters, but the document released Wednesday does not answer basic questions about whether he would address this issue in terms of taxes. But the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, estimates that a version of the tax cuts would cost $6.2 trillion in revenue during that same period, leaving a $4trillion gap even with Mnuchin's projected growth.
Eliminate nearly every individual tax deduction: Except those for mortgage interest and charitable contributions.
The proposal would simplify the system to go from seven tax brackets to three brackets of 10 percent, 25 percent and 35 percent.
Still, "I would never, ever bet against this president".
"Many wealthy estates employ teams of lawyers and accountants to develop and exploit loopholes in the estate tax that allow them to pass on large portions of their estates tax-free", according to the independent Center for Budget and Policy Priorities in Washington. As a result, he paid little state income tax despite earning almost $3 million a year.
The White House had promised to roll out a "tax plan" for America on Wednesday (Thursday NZ Time).
Tax cuts reducing them from 39.6 per cent to 15 per cent have been proposed by the U.S. leader's administration.
The White House is thinking big on tax reform, but don't expect any action soon.
The plan also urged adoption of a "territorial" corporate tax system that would largely exempt foreign profits of US -based corporations from federal taxation.
Meanwhile, the border adjustment tax, which would have raised taxes on imported goods, is not in Trump's plans.
But so far, it seems like some Democrats aren't thrilled with Trump's proposals.
On tax cuts, El-Erian said, "The most important part is when do we get the details - not just of the tax plan itself, but of how it's going to move through Congress and get implemented".
"Instead of providing a real tax reform plan as promised, this administration is offering cakes to the fortunate few".
"What we would do with it, let's wait and see exactly what it is, but as I've said before we are always looking at acquisitions", Cook told investors on the company's first-quarter earnings call in January in response to an analyst's question about the company's thinking on acquisitions. "Thus, reducing the corporate tax rate from 35% to 15% would be scored as adding about $2 trillion in deficits over the next 10 years". He also wants a low, one-time tax on $2.6 trillion of profits earned overseas that have never been repatriated with the aim of encouraging USA multinationals to invest some of that cash in America. But especially on the business side, Trump's plan lacks numerous details needed to make the numbers work. Charles Schumer, D-N.Y., said on the Senate floor Wednesday.
Other economists say that if the cuts balloon the deficit, the jump in government borrowing would swell interest rates and make it harder for businesses and households to borrow and spend.