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Claims about Trump's tax plan don't hold up

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Treasury Secretary Steven Mnuchin wanted to talk about the middle class tax breaks found in the new Trump tax proposal

In addition to earlier information about potential tax cuts for businesses, more details have emerged today about how President Donald Trump's tax proposal will affect individual Americans. While it wasn't very detailed, the plan more or less includes what everyone expected.

Of course, it's impossible to analyze this tax reform proposal without wondering about its impact on the current man in the White House. The standard deduction for a married couple is $12,700, so double would be $25,400.

"We are going to cut taxes for businesses to make them competitive and we're going to cut taxes for the American people, especially low and middle income families", said Gary Cohn, director of the National Economic Council.

Only the S&P telecommunications services sector actually pays more than the top rate of 35 percent, according to the effective tax rates for 2016 provided by Capital IQ.

"This will pay for itself with growth, and with reduction of different deductions and closing loopholes", Treasury Secretary Steve Mnuchin said.

To qualify, business owners, such as developers, set up limited liability companies to pay them, thus avoiding higher income tax rates. The plan was blasted by congressional Democrats, including House Minority Leader Nancy Pelosi of California, who called it a "wish list for billionaires". Companies employ tax specialists who whittle the average down to about 19 percent.

Overall, Marr notes the Tax Policy Center has estimated the top 1% of households would see a 14% increase in after-tax income, while low and middle-class Americans would see gains of just 1.2% to 1.8%.

At first blush, it appears to be smaller than President Ronald Reagan's 1981 tax cut, the biggest ever.

As presented, the plan allocates much of the tax relief to the wealthy, which means it will be hard to get votes from Democrats.

Mr. Trump, who gave the Fox News interview on the eve of his 100th day in office, said he has been "disappointed" in how Republicans have handled major issues like health care, but he has "confidence" in Speaker of the House Paul Ryan, in moderate Republicans and in the House Freedom Caucus.

Summing up, Trump has finally presented his long-awaited tax plan. This tax is levied on assets passed on to your heirs upon your death. "It's not true that you will have it for free - that tax cuts will pay for themselves". Other Republican plans have advocated allowing businesses to deduct the cost of investments as soon as that cost is incurred, rather than making them use lengthy depreciation schedules to stretch out those deductions.

The administration says it would ensure that wealthier Americans wouldn't exploit the lower pass-through rate, but it provided no details on how that would do so.

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