Trump says he's willing to consider raising gas tax
08:05, May 15, 2017
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According to the one-page plan, the main goals are to grow the economy and create millions of jobs, simplify our tax code, lower the business tax, and provide tax relief to American families. As Philly-area accountants see it, there are potential winners and losers.
It's hardly fair to call the White House outline a plan, given that it amounted to little more than a handful of bullet points without substantive explanation. That's almost double the new "benefit" they'd get from the increase in their standard deduction of $11,400. Forty percent of voters support getting rid of the individual alternative minimum tax, compared to 24 who oppose its elimination.
But the Trump proposal would reduce the top corporate rate to 15 percent from 35 percent, meaning it would be lower than the maximum capital-gains rate.
Also, charities could reap big gifts.
On the other hand, Mnuchin said it was important to the US economy to create a tax reform plan that not only benefitted large corporations but small businesses as well.
For example, supporting the elimination of the state tax deduction from individual federal tax bills would be political suicide for 39 Republican representatives from the four high-tax states of California, Illinois, New Jersey, and NY. If you own a residence in Pennsylvania or a beach house at the Jersey Shore, you won't be able to deduct property taxes on either under the proposal.
For example, the plan would eliminate the tax deduction we now have for the Wisconsin income taxes we pay.
When asked about the corporate rate reduction to 15 percent included in Trump's agenda, 37 percent of voters said lawmakers should include that provision in tax overhaul legislation, while 38 percent said it shouldn't. Farther down the road, there could be issues.
Frustrations with American tax policies are bound to get much worse with President Donald J. Trump's latest tax plan released Wednesday. Under Trump's plan, these same individuals now only have to pay 33% in income tax, which is a significant 2%-7% decrease. President Donald Trump's proposal favors more affluent taxpayers and would add considerably to the federal deficit. Twenty percent said they didn't know or had no opinion. "The truckers have said that they want me to do something as long as that money is earmarked to highways".
"I'm not sure it should be called a 'plan, ' " wrote David Autor, an economist at the Massachusetts Institute of Technology. Trump's priority is giving people like himself more while taking away from everyone else.
Health bill's disposition: House Republicans look likely to make another attempt at passing the American Health Care Act (AHCA). "Lets get through this week and then hopefully have some additional details moving forward".
The plan Trump put forth was extremely broad, and lacked any math to support how he planned to pay for his tax cuts, but the fact remains that a tax holiday on global money is going to remain a major part of his plan moving forward, which will benefit those companies that keep a lot of their money overseas in order to avoid paying taxes on that money when they bring it back to the states.
Another concern about the White House's approach to tax reform for individuals and corporations is whether it will be revenue-neutral. We now spend $1 trillion a year to pay people not to work, and we wonder why the labor-force participation rate keeps shrinking.
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During the Obama years, growth was an abysmal 1.9%, which the Congressional Budget Office now says is the course we are on for decades to come. The response, in a word, is heartening. Our role as an independent, fact-based news organization has never been clearer.