Trump tax plan: Relief for his voters but lots of unknowns

The centerpiece of Trump's plan would cut the corporate tax rate from 35 percent down to 15 percent, exempt foreign earnings from USA taxation and reward companies that have been parking cash overseas to avoid taxes.

The seven income tax brackets for individuals would be reduced to thee - 10, 25 and 35 percent - but Trump didn't specify the income ranges. "But other tax benefits will be eliminated".

In the few glances we've seen of Trump's tax returns, he's run into the Alternative Minimum Tax-a system expressly put in place to keep the wealthy from dodging taxes through complex dedications and shuffling funds off to tax havens.

Families with after-tax income between roughly $19,000 and $76,000, for example, are now in the 15 percent marginal tax bracket, which is slated for elimination.

Among the likely winners in President Donald Trump's tax-cut plan would be a real estate developer turned reality TV star who now happens to occupy the White House.

It also does not fully embrace tax proposals backed by Republican House Speaker Paul Ryan, an essential ally if the president is to make good on his promise to deliver a tax overhaul that creates growth and brings jobs to struggling parts of the country. At first blush, the tax cuts look smaller than President Ronald Reagan's in 1981, which were the biggest ever. The current federal budget deficit is around $500 billion.

President Trump's tax reform plan will benefit most USA households and make filing taxes simpler but it will provide the biggest windfall to the wealthy, experts say.

It would be hard, however, for Trump's aides to identify enough breaks and loopholes to make up for the major tax cuts that Trump wants to grant affluent taxpayers.

The plan proposed a one-time repatriation tax that would allow companies to bring back money from overseas to the USA with a slightly lower, one-time tax.

Isaiah Thomas to play Game 2, then fly to sister's funeral
Derrick Favors, who had 15 points and six rebounds for the Jazz in Game 1 , is expected to replace Gobert in the starting lineup. The Bulls scored 32 points off Rondo's assists, the most points off assists by any Bulls player in franchise postseason history.

The Retail Industry Leaders Association, comprised of some of the nation's largest retailers, including Wal-Mart Stores Inc, Target Corp and Best Buy Co Inc, praised Trump's call for a lowertax rate and reiterated opposition to the idea of the border adjustment tax. "We all agree that in its present form it needs to be modified", Ryan said April 26 at a Washington conference hosted by Baker & Hostetler LLP. "We know what we're asking for is a big bite".

Trump's plan faces many hurdles in Congress and within the Treasury Department.

In 401 (k) plans, individuals get to contribute income before it is taxed. "They don't repatriate it because it is subject again to tax in the U.S.", Kauffman said. If the Trump administration's plan to lower tax rates becomes law, it will likely benefit McVey.

For decades, American presidents have released their tax returns, but Mr Trump has so far refused, saying that he would share the tax documents only after the US Internal Revenue Service completes an "audit" of them. Ron Wyden, or OR, ranking Democrat on the Finance Committee.

The White House proposal would cut many deductions - including those for state and local taxes - but retain others, such as the deductions for mortgage interest and charitable donations. 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.

A Goldman Sachs economic research report by Alec Phillips on the newly released tax plans answered some key questions regarding Wednesday's announcement, including, "What did the White House announce?"

The administration has emphasized that the plan is focused on simplifying the tax code and helping middle class Americans.

The proposal has yet to be vetted for its precise impact on top earners, as several specifics are still being determined.

"If a taxpayer has a choice between paying at a 15 percent top rate versus a 35 percent rate, the taxpayer and their tax planners will be working feverishly to take advantage of the 15 percent rate". In October, the Tax Policy Center estimated that Trump's old plan would increase after-tax income for the top 1 percent of households by more than 14 percent (about $300,000) compared to a less than 1 percent increase for the lowest quintile (about $100). Pass-through businesses - which include small businesses like corner stores and free-lancers but also doctors, lawyers, consultants and vastly profitable hedge funds - get their name from the way they file taxes: The businesses pass their income through to their owners, who then pay tax based on their individual income-tax rate.


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