January 24 2018

Trump says he will not negotiate on 20 percent corporate tax rate

January 24 2018, 01:47 | Van Peters

Trump says he will not negotiate on 20 percent corporate tax rate

Trump GOP roll out tax plan cuts rates doubles deduction

These effects are the result of the top-loading of major provisions, including proposed elimination of the alternative minimum tax and estate tax, which fall nearly exclusively on the wealthy, as well as a cut in the top marginal tax rate to 35% from $39.6%.

But Trump's tax plan actually has some major benefits for wealthy Americans.

"Our tax plan is aimed at making sure we give middle-class Americans a tax cut", National Economic Council Director Gary Cohn told reporters, adding that a family earning $100,000 would see $1,000 decrease in tax liability. The $500,000 in savings is a rough estimate because Trump has not specified income levels for his proposed tax brackets. The top 1 percent of taxpayers would receive about 50 percent of the total benefit, and the top 20 percent would receive 75 percent of the total benefit. Their average tax cut would be even bigger in 2027 than in 2018, though the top 0.1% would get a smaller tax cut 10 years from now than they would next year. "Wealth fare, helping those of great wealth with more tax breaks".

Many Democrats, however, have said they will oppose changes that increase debt or benefit the wealthiest citizens.

Of course, these are just averages. According to the Tax Foundation, New Jersey was third in the nation, behind just California and NY, as the largest beneficiary of that deduction.

Trump pitched a tax plan which eliminates most itemized deductions, except for charitable donations and the popular home mortgage interest deduction.

On paper, the biggest beneficiaries of the individual changes are low- and middle-income single filers and childless couples who would see more earnings covered by the higher standard deduction. Republicans leaders must clarify those points and sell the plan to lawmakers before it can advance. The committees on Capitol Hill that will write the tax legislation need to fill in crucial details.

As a result, the Tax Policy Center analysis made a series of assumptions about the impact of the provisions that have not been spelled out.

Trump could stand to save a lot of money from the plan, based on a review of the president's 2005 tax returns, portions of which leaked earlier this year.

"I do have a concern about the fact that I favor the continued destructibility of state and local taxes".

Speaking before a full room at the Indiana State Fairgrounds the president stated: "We want tax reform that is pro-growth, pro-jobs, pro-worker, pro-family and yes, tax reform that is pro-American". A comprehensive rewrite of the American tax code has eluded previous administrations and Congress for decades.

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