TRUMP Act would put Trump's NY tax returns online


Conceding upfront that President Donald Trump's plan would generate more red ink in the medium to long term would be accepting defeat before the legislative fight has even begun. Corporate taxes make up about 9 percent of total USA federal revenue, according to a statistic from the Government Accountability Office.

To be sure, lawmakers are in the very beginning stages of tax reform negotiations.

But based on proposals President Trump released during the campaign, and comments made in recent weeks by both administration officials and Republican legislators, the coming overhaul will nearly certainly be heavily weighted toward the wealthy. Look at the key elements of Trump's proposal: Slash the corporate tax rate from 35 percent to 15 percent; lower levies for most individual payers; and eliminate the estate tax and the alternative minimum tax, which are both created to capture revenue from wealthy individuals who avoid other tax liabilities.

The bottom line: Trump's plan to cut taxes might lead to higher GDP growth, but without spending cuts it will certainly increase the deficit. In order fund his proposed tax cuts, Speaker Ryan suggested the implementation of a new consumption-based tax.

USA corporate taxes are much higher than those imposed by rivals like the United Kingdom, Germany, Ireland and China because other nations rely more on consumption than income taxes - usually, value added taxes (VATs).

For banking, it's time for evaluation and response.

A colleague of mine who works inside the Beltway as a tax legislative analyst told me not to worry. More than half of respondents said the estate tax, which taxes inherited wealth, should be eliminated and that a repatriation holiday for foreign profits is a good idea. The property-tax deduction is one area. But in reality, nobody paid tax at those rates.

In exchange for those changes the rates were dropped.

Most banks hold a few categories of DTAs on their books and therefore will feel at least a little pain on this front.

Angelo Young is a freelance writer and editor whose work has appeared in the International Business Times, Salon, and the Arab News, among many other publications.

These latter banks will experience a relatively greater write-down to their capital as the new rates take effect.

Two-thirds of Democrats believe Mr. Trump's own taxes will go down, something only one in four Republicans think. Our tax relief will be focused on the Middle Class, including much-needed relief for low and middle-income parents raising children.

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. They want to lower rates and reduce deductions on both the corporate and individual sides of the tax code, which will start a gusher of red ink. Another is to permit full expensing-to let companies deduct the entire cost of investments immediately.

"American tax payers spend billions of dollars each year, complying with our archaic tax laws, reducing economic production and creation".

Throughout the B.C. election campaign, NDP Leader John Horgan has been dogged by questions about how he will pay for some of his spending promises and whether the tax increases detailed in the party's platform will be the only ones businesses could expect under an NDP government. These profits may be taxed in the future, if they are repatriated. Enrolled agents do all that, are licensed by the U.S. Department of the Treasury and are bound by a code of ethics. Not surprisingly, this composite taxpayer paid a lot less tax under the proposals. In any event, if enacted, any such legislation could have a directly positive or negative impact on any bank whose customers are active importers or exporters. Divorce decrees often contain wording that has a different tax result than what was intended. There is good reason for taking such positions.

CRS also stated the plan would achieve efficiency gains, particularly in the even treatment of debt and equity finance.

Is there anything else in this proposal that affects the mortgage and housing industry?

Last month the White House released guidance on how it would like to reform the federal tax code, and since then reviews have been predictably mixed.

This point was made emphatically clear through a new Business Roundtable survey that finds that a significant majority of its CEO members believe tax reform is the single most effective action Congress can take to accelerate economic growth over the next year.

Mark Kendall is a partner and Jack Burns is an executive director, both with Ernst & Young LLP.