The Morning Briefing: Tax Reform, RUSSIAN Facebook Ads and Much, Much More
- Author: Leroy Wright Sep 29, 2017,
Sep 29, 2017, 8:27
"They told me that I couldn't be over there, that all of the protesters were going to be on 38th Street and Fall Creek", said Tina Pontius.
Still, while the President focused on the benefits the tax proposal would deliver to middle class Americans, he made clear it would also be a boon for big business.
It lowers the corporate tax rate to 20 percent and eliminates four income tax brackets.
Trump is promising the middle class will be "the biggest winners" of his tax plan, which will cause "jobs to start pouring into our country".
"It just simplifies things so much so that people just don't pay taxes on those first $24,000 of money they earn", counters House Speaker Sen.
The White House struggled on Thursday to defend its new tax plan against criticism that it would help the rich at the expense of lower classes, as Republicans in Congress prepared to move ahead with actual legislation.
President Donald Trump announced the details of his tax reform plan on September 27. Trump also wants to simplify the tax code to allow the majority of Americans to file on a single sheet of paper. The plan repeals the Alternative Minimum Tax, which requires many taxpayers to do their taxes twice.
The plan would reduce the number of tax brackets from seven to three - 12 percent, 25 percent and 35 percent. "We want tax reform that is pro-growth, pro-jobs, pro-worker, pro-family and yes tax reform that is pro-American". It also appears to eliminate most deductions, while specifically keeping those on mortgage interest and charitable donations. Third, tax reform should go through the normal legislative process so both Democrats and Republicans have an opportunity to craft a bipartisan package.
Under the current tax code, that couple would forgo the $12,000 standard deduction and instead itemize. They would pay at a 25 percent rate, down 39.6 percent.
Trump's proposal also offers write-offs for companies that move their manufacturing plants to the USA and would incentivise the repatriation of "trillions" of dollars in United States companies' profits stashed in tax havens overseas. It is an invitation for companies to shift operations and headquarters overseas.
That's one of the reasons Democrats in Congress oppose the plan.
I don't see this taking shape to effect 2018 tax filing season but it's possible to impact 2019 and it's unclear whether any of these changes would be implemented retroactively - impacting past filings - and part or all of 2018.
"The AMT will make even less sense because we are repealing numerous special interest tax breaks that it was created to deal with", Trump said.
On Wednesday, President Donald Trump said he will not personally benefit from his new tax plan. Donnelly rode from Washington D.C.to IN on Air Force One Wednesday with the President ahead of the announcement.
Representative Kevin Brady, Republican chairman of the tax-writing House of Representative Ways and Means Committee, dismissed the criticism as false.