Tax cuts will be 'rocket fuel' for economy

Remigio Civitarese
Ottobre 1, 2017

If it stopped there, it would deliver a straightforward tax cut to the broad middle class.

How about small businesses and farms?

The Times continued, "The plan would also benefit Mr. Trump and other affluent Americans by eliminating the estate tax, which affects just a few thousand uber-wealthy families each year, and the alternative minimum tax, a safety net created to prevent tax avoidance".

Some Republicans, once fiscally demanding but now desperate for a legislative win after a yearlong drought, shrugged off the specter of adding billions to the federal deficit. What's touted now as a major tax overhaul could end up as a tax cut for the rich.

House Speaker Paul Ryan talks about the Republicans' proposed rewrite of the US tax code at the Capitol on Wednesday. Trump has argued that "it's time for Washington to learn from the wisdom of IN". One vulnerable incumbent, Indiana Sen. In that case it will also be hard to label the tax plan "pro-family", as Republicans usually want to do, since it will mean that tax relief per child will actually shrink.

Reduce the corporate tax rate to 20 percent. They have wonderful farms, but they can't pay the tax, so they have to sell the farm. That's all part of an effort that Trump said would make us businesses more competitive globally. It also proposes a reduction of the number of income-tax brackets from seven to three. And finally, the plan proposes to repeal the death tax to allow families to pass on the farm or small business to the next generation without another tax punishment from Washington, DC. "In Indiana, you have seen firsthand that cutting taxes on businesses makes your state more competitive and leads to more jobs and higher paychecks for your workers".

In 1986, President Ronald Reagan's tax plan initiated an era of unprecedented economic growth and prosperity. "No, I don't benefit".

If net corporate interest expensing remains a part of the plan, capitalization choices may be drastically impacted while the Treasury works to unwind quantitative easing.

President Donald Trump's new tax plan calls for the elimination of the estate tax. Bernie Sanders, I-Vt. The Committee for a Responsible Federal Budget analysis said Republicans had only identified about $3.6 trillion in offsetting revenues, meaning the cost to the federal deficit could be in the $2.2 trillion range. This basically would increase the amount of personal income that is tax-free.

But it's already clear that one provision disproportionately hurts high-tax states like California, New York and New Jersey that did not support Trump in the 2016 election: Trump aims to do away with the federal tax deduction for state and local income and property taxes.

-Retain existing tax benefits for college and retirement savings such as 401 (k) contribution plans. Marco Rubio, Florida, and Mike Lee, Utah, seized on the question of how much the child tax credit, now valued at up to $1,000 per child, would grow. The credit now is $1,000 per child.

If the estate tax is eliminated, the loss of federal income would exceed $269 billion over the next decade.

As the debate goes deeper on tax reform, many additional "red lines" are sure to become more defined for lawmakers in the coming months.

As the state with the highest tax burden, California that amount to 12 percent of US population, are expected to pocket 18 percent, or $17.1 billion of SALT deductions in 2017, according to an analysis by the Tax Policy Center.

-Give new benefits to firms in which the profits double as the owners' personal income. It slashes the rate corporations have to pay from 35 to 20 percent.

For the majority of American manufacturers that file taxes as sole-proprietors, corporations or partnerships, Trump said his administration will cap their top tax rate at a maximum of 25 per cent.

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