The debate over the Trump tax plan has just begun.
Repeals the Death Tax and Alternative Minimum Tax (AMT)The framework repeals the unfair Death Tax and substantially simplifies the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice. Let's consider each in turn. Under current law, the first $11 million of an estate is exempt for a married couple, meaning only the wealthiest Americans pay it.
Still, from the people of America, questions and comments remain.
Gov. Andrew Cuomo contended the tax proposal might be illegal, saying it would equate to double taxation. It is assets, like stocks and homes, that have appreciated in value but not sold. -Philip Bump, Washington PostUsing what it is known about Trump's fortune-a still hard number to determine given that he refuses to release his tax returns-the Times looked at a portion of Trump's 2005 return leaked to the press earlier this year alongside an estimate by Bloomberg which put his net worth at approximately $2.68 billion in order to assess the degree to which he would directly benefit. The AMT applies to taxpayers whose income tax liability otherwise would be reduced excessively by certain deductions, including deductions commonly claimed by real estate owners like Trump.
The White House on Thursday sought to defend the central premise of its tax overhaul - that it would represent a huge benefit to the middle class - amid growing doubts from tax policy experts, Democrats and even some prominent conservatives that it would accomplish that goal.
The outline also proposes the corporate tax rate dropping to 20% and doubling the standard deduction for our income tax. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). But it doesn't specify the income levels for each bracket.
One potential offset - the elimination of a deduction for state and local income taxes - is subject to negotiation, National Economic Council director Gary Cohn said on Bloomberg Television on Friday.
Winners Corporations with high tax rates: The framework lowers the corporate tax rate to 20 percent from 35 percent.
Kennedy proposed cutting the top tax rate from an astonishing 91 percent to 65 per cent.
The best-selling author, who penned The Shining, argued President Trump's ambitious tax plan which was unveiled on Wednesday would reward the wealthiest and neglect those at the bottom. Their shareholders, consumers and workers do.
"We're excited that framework takes a look at reducing corporate tax rates, a territorial system and repatriating funds", Tiffany Moore, vice president of political affairs at the Washington D.C. -based Consumer Technology Association, a think-tank that represents a number of major tech firms, told The Hill.
This will primarily enrich the richest 1 percent because they own half of all corporate stock.
The deduction, which survived the mid-1980s "tax reform" effort and has not been seriously threatened since then, mostly helps those who itemize their taxes in high-tax, high-income states.
The plan includes taxing the foreign profits of USA multinational corporations at a lower tax rate in an effort to stop corporations from shipping jobs and money overseas. While this is still a painfully vague aspect of the framework, Republicans seem determined to follow through on Trump's promise to cut taxes for the middle and working classes overall to pay for the tax plan, rather than provide tax cuts for the rich.