Treasury Secretary Won't Promise No Middle Class Tax Hike

Cornelia Mascio
Mag 3, 2017

The new plan includes five items that Trump promised on the campaign trail: reducing the tax brackets, increasing the standard deduction, reducing business tax to 15 percent, and eliminating the AMT and estate tax. The florist has a range of possibilit.

When White House spokesman Sean Spicer was asked last week if Trump would authorize the IRS to provide more details of the audit, the press secretary deflected.

"We're going to eliminate most of the tax breaks that are mainly benefits to high-income individuals", he added, but "home ownership, charitable giving and retirement savings will be protected", Cohn said.

These are the people who have been left behind by an increasingly globalized economy.

Based on limited tax information from Trump, The New York Times on Friday reported that the real estate tycoon could save tens of millions of dollars in one year under his new tax proposal. But Trump's top economic adviser used some bad math to describe the proposal, raising questions. The mortgage interest and charitable contributions deductions would stay, but that wouldn't matter if numerous 600,000 Long Islanders who itemize could no longer do so. But that's not double.

About 70% of Americans, mostly low- to moderate-income, now take the standard deduction and would benefit, Viard says.

AMP chief economist Shane Oliver has also said that if Australia is unable to compete with the United States tax rate, companies may decide to move their head office from Australia to the US. This would raise much-needed revenue to pay for the plan's other provisions, and it would be targeted, for the most part, at the coastal metropolitan regions that have benefited most from the economic changes of the past few decades.

Despite the hype, the death of the so-called death tax isn't that big of a deal for the US government.

Trump also wants major cuts to the federal budget, including cuts to some agency budgets and the elimination of other programs altogether.

The average state and local tax deduction claimed by New Yorkers who itemized was $21,038 - the highest in the country. However, they disagree widely on how much higher.

But probably the dumbest part of this entire presentation was the proposal to more than halve the tax rate on "pass-through" income. Well, it should, but there is one problem with that plan: it lacks any details.

Contributions to a 401 (k) reduce taxable income and earnings in the accounts grow tax-free until withdrawn.

This editorial will be longer than President Donald Trump's current tax plan. It has evolved over the years and now impacts about 5 million households, a lot of them making between $200,000 and $1 million a year. But it's clear that the most significant changes are the tax cuts from the top-the wealthiest corporations and individuals.

Last year, more than 43 million families claimed the deduction, saving them almost $70 billion.

Of the overall sample group, 250 companies paid less than the 15 percent tax rate that Trump proposes; 178 paid less than 10 percent and 43 companies paid less than 1 percent.

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