If you want to know who the big winners are in the new Republican/Trump tax plan, look no further than the White House – it’s the billionaires and ultra-wealthy like President Donald Trump, his administration and his family who will benefit the most, despite Trump’s claims to the contrary.
Corporations would see their top tax rate cut from 35 percent to 20 percent.
“This is our once-in-a-generation opportunity to fundamentally rethink our tax code”. “When our companies move to other countries it’s our loyal American workers who get hurt”. They would pay at a 25 percent rate, down 39.6 percent.
“Our framework includes our explicit commitment that tax reform will protect lower income and middle income households, not the wealthy”, Trump said.
What that means: It’s intended to help businesses grow, and would allow them to not have to pay for business investments out of pocket.
Under current law, business income of the type discussed here is taxed in the same manner as wage income, at graduated rates that rise with your income.
The new framework will stop punishing companies for keeping their headquarters in the USA, he added.
Businesses who purchase equipment can fully write it off only in the year it was purchased and families with children under the age of 17 will find an increased tax cut.
Calling his plan a giant win for the American people, he rediculed the current tax system as a relic and a colossal barrier standing in the way of the nation’s economic comeback.
The transition to the new system would also include a one-time repatriation tax to encourage companies to bring offshore profits back to the United States.
President Donald Trump walks to speak to reporters as he walks to board Marine One on the South Lawn of the White House, Wednesday, Sept. 27, 2017, in Washington. Todd Young, to vote for the tax reform plan. The committees will determine these rules. Ron Wyden, a Democrat on the Senate Finance Committee, told CNBC that Trump’s plan would create “a whole new set of wealthy individuals being able to dodge their taxes through this new provision”. Doubling the standard deduction to $12,000, or $24,000 if married filing jointly, allows the nearly 70 percent of taxpayers who use the standard deduction to decrease the amount of taxable income significantly.
The tax proposal gets rid of the personal exemption that filers now claim for each taxpayer and dependent.
They haven’t specified where those brackets would apply, but Trump’s last campaign tax plan applied the 25% bracket up to $112,500 of taxable income ($225,000 for married couples).
While the plan is aggressive in slashing taxes, one problem is how much it will cost, and how to pay for it. Estimates show that it would cost upwards of $5 trillion.
Tax deductions for home mortgage interest and charitable contributions will be retained.
The plan would retain existing tax benefits for college and retirement savings such as 401 (k) contribution plans.
Lawmakers will face a fight to eliminate $4 trillion in tax deductions, loopholes and other “base broadeners”, including tax breaks that will be defended by interest groups and lobbyists.
“I’m doing the right thing, and it’s not good for me, believe me”, Trump said.