Trump sells tax plan as 'once-in-a-generation' opportunity
- Author: Salvatore Jensen Sep 28, 2017,
Sep 28, 2017, 7:02
Trump's tax reform policies were a key platform for him during last year's election campaign, in which he argued that many companies were taking jobs away from the United States to countries where the corporation tax was lower.
Tax reform was one of the pillars on which Trump built his campaign.
An analysis by Americans for Tax Fairness of the tax framework shows that Trump's tax cuts could total $6.7 to $8.3 trillion, $3 to $5 trillion of which may not be paid for by closing other tax loopholes and/or by limiting tax deductions.
President Donald Trump is in a big rush for Congress to approve big tax cuts, and he is using the damage left by Hurricane Irma to argue his case.
It is the Republican philosophy on healthcare all over again.
Given the constraints, it's a safe bet that we'll see some serious deal-making within the tax-writing committees over the next few months.
One critical Republican has already reacted positively to the plan.
"This is a once-in-a-generation opportunity, and I guess it's probably something I could say that I'm very good at", Trump said during remarks in Indiana.
A majority of Americans agree that America's tax system needs a major overhaul but are split on whether Republican efforts will help their families, according to a new poll. Also: "The standard deduction would nearly double to $12,000 for a single filer and $24,000 for married couples, meaning Trump can accurately argue that many more low income earners would pay no tax under his plan".
Even fiscal hawks are showing a willingness to accept huge revenue losses, predicting aggressive tax cuts would drive economic growth high enough in future years to produce a flood of new tax revenues that would pay for lower rates.
Trump long ago promised to decrease the rate to 15% for corporations, but a nine-page outline released by the "Big Six" tax negotiators in the White House and Congress called for rate of 20%. When Trump was on the campaign trail, however, he repeatedly promised a 15 percent tax rate, which many experts saw as almost impossible.
Despite the obvious boon for rich individuals and corporations, Trump insisted it was a middle class tax cut.
Trump made the announcement after a White House meeting with Democrats and Republicans on the House Ways and Means Committee. Repealing it could raise $1.3 trillion over 10 years, according to the Tax Policy Center. Tax cuts shouldn't add to the ballooning debt, the Democrats say. Senior administration officials told reporters on a conference call Tuesday that the goal is for the tax changes to create a larger "zero" tax bracket, and be "at least as progressive" as the current system, all with the "middle class in mind". It is unclear what income level they want to qualify for that tax bracket.
Under current law, the profits of those companies "pass through" directly to their owners and are taxed as personal income, often at the top 39.6% individual income rate.
Republicans are divided over the potential of elimination of some of the deductions.
The deductions the administration intends to keep are for mortgages and charitable contributions, although the White House is urging the House and Senate committees to incentivize retirement saving.
NY ranked second among all states for the amount it residents deducted for real estate, income and other state and local taxes, totaling about $68 billion per year, according to the most recent IRS statistics.