Sábado, 21 Julio, 2018

What Trump's Tax Plan Proposes and Who It Will Benefit Most

US treasury secretary Steven Mnuchin said the public already has plenty of information about Mr Trump's finances US treasury secretary Steven Mnuchin said the public already has plenty of information about Mr Trump's finances
Manuel Armenta | 03 May, 2017, 06:58

There are surely doubters, many of them among the president's own party in the Congress, who are also waiting to see what this would do to the deficit - at the very least in the short term. "The president has released plenty of information, and I think has given more financial disclosure than anybody else". Even Republicans were more likely to say the rich pay too little (45 percent) than too much (20 percent).

"That's the heavy lift", said Rep. Dave Brat, R-Va.

So if you're scoring at home, a family of five that now claims the standard deduction will actually lose deductions under the Trump plan.

We're going to repeal the death tax. This is supply-side nonsense. The current rate is 28% for income that qualifies, and it hits individuals who otherwise would benefit from a sharply lower effective tax rate because of deductions. We say plan, but on a single page, it's more of list of talking points, devoid of detail.

He called the new tax code the "most significant tax legislation since 1986, and one of the biggest tax cuts in American history".

The CRFB notes that by its estimates, Trump's tax plan would lead the USA debt to rise to its highest point in history, and "no achievable amount of economic growth could finance it".

Gary Cohn, the director of Trump's National Economic Council, told reporters Wednesday that the higher standard deduction means that fewer people will have to file itemized deductions to reduce their taxable income, which could lead to a simpler tax return.

Trump also wants to reduce the top income tax rate from 39.6 percent to 35 percent.

In Kansas, Gov. Sam Brownback eliminated state taxes on pass-throughs, which turned out to be a boon for Bill Self, the coach of the University of Kansas' men's basketball team.

Ryan was diplomatic when asked about Trump's tax plan.

This much we do know.

Democrats were much harsher in their appraisal.

"The president's outline yesterday is a direct assault on the middle class and an expensive gift to wealthy Americans", Senate Majority Leader Chuck Schumer (D-N.Y.) said Thursday.

The president's proposing ending the alternative minimum tax, which applies when you have so many deductions that your taxes would be miniscule, even zero, otherwise. The plan would lower the number of tax brackets from its current seven to three and would wipe out all deductions for individuals, except for the mortgage interest and charitable donation deductions.

In 401 (k) plans, individuals get to contribute income before it is taxed. Pass-throughs include partnerships such as law firms and hedge funds as well as most small businesses - from the local florist to the family-owned restaurant on Main Street. For example, if a business earns over about $18 million, they are now taxed at a 35% rate schedule. But there's no detail on which incomes fall under each bracket.