Trump tax plan: Relief for his voters but lots of unknowns
May 08 2017 by Kristina Bennett
President Trump's federal tax plan is a corporate giveaway that would balloon the federal budget deficit, with severe economic consequences more aptly described as con-artistry than conservatism. In addition to reducing the rate from 39.6 percent to 35 percent, Trump would also eliminate the estate tax - which is paid nearly exclusively by wealthy heirs when a family member passes away - and a 3.8 percent surcharge that the rich pay on income from their investments imposed as part of President Barack Obama's health-care reforms, also known as Obamacare. Treasury secretary Steven Mnuchin says the current deduction wrongly forces the federal government to subsidize high state income taxes.
Doubling the standard deduction - or at least raising it to $24,000 - could provide significant tax relief to middle-income families.
It also omits much of the work that Ryan and other Republicans have done to craft a comprehensive plan.
Still, "I would never, ever bet against this president".
Spicer was asked about 401 (k) accounts in particular, following remarks Wednesday by Trump's National Economic Council Director Gary Cohn, who said "homeownership, charitable giving and retirement savings will be protected". Next door to the White House, in the Treasury Department, there are actual economists who take seriously the responsibility of safeguarding the world's biggest national economy.
Ruffin said he told the president that Democrats would hire "armies of accountants" to pore over the documents and "make an issue out of any and everything". Trump officials essentially argue that benefits from the tax cuts will trickle down from higher profits for companies into stronger pay raises for workers and greater consumer spending.
In Oregon, lawmakers are trying to close a billion-dollar budget hole as revenues fall short of projection.
In its analysis of the Trump plan, the Committee for a Responsible Federal Budget said "no achievable amount of economic growth could finance it" and it would drive the debt to 111 percent of the gross domestic product by 2027, compared with 77 percent now.
STEPHANOPOULOS, IN DISBELIEF THAT THIS GUY IS BLOWING IT THIS BADLY: But the objective is no absolute tax cuts for the wealthy?
According to Ms. Gorman of Chequers Financial Management, the AMT does not allow deductions for state and property taxes, and the tax rate starts at 26%, then quickly climbs to the 28% bracket.
"We know this is hard", Cohn said. We already know that some of Trump's campaign advisers had personal financial ties to this frequent USA adversary or its surrogates.
DONALD TRUMP has proclaimed his White House to be the most productive since Franklin Delano Roosevelt.
Tax boutique owner and former Income Tax Commissioner Tali Yaron-Eldar believes that Trump has made a decision to get on the worldwide tax cutting bandwagon.
There are still many unknowns about the Trump proposal, in particular, what changes Congress might make to offset the drop in tax revenue that lower rates would likely bring. "They don't repatriate it because it is subject again to tax in the U.S.", Kauffman said. Repealing the estate tax alone would cost an estimated $174.2 billion over a decade, the nonpartisan Tax Policy Center said. Little is known of Mr. Trump's tax burden, but one of the small nuggets revealed in the partial release of a 2005 tax return this year was that he paid $31 million under the alternative minimum tax that year. Ron Wyden, or OR, ranking Democrat on the Finance Committee.
The White House unveiled a list of sweeping reforms to the tax code on Wednesday aimed at simplifying the system and doing away with most deductions. Yet they must overcome a long tradition and powerful opponents, including Republican and Democratic officials in wealthy, populous states like California, New Jersey, New York and Texas. Even significant numbers of Republican senators are quietly warning they can not support Trump's tax policies if Trump fails to release his federal tax returns.