Trump tax plan stands to benefit the man in the White House
May 07 2017 by Harriet Stone
"When you have a 15 percent corporate tax rate, we don't believe that you have to give people a lot of deductions".
The proposal leaves many details undefined and faces a gauntlet of political land mines, but it's a good opening bid by a president who understands that taxes are too high and that the US economy needs a dramatic jolt.
"Not a surprise that companies leave trillions of dollars offshore", he commented.
But it's a bonanza for the well-to-do, including Donald Trump and his family.
If Trump were ever to release his own federal returns from the past few years, we might be able to say exactly how his tax plan would benefit - or hurt - him directly. Specifically, that spells pretty big tax cuts for small businesses as well as big corporations. "Honestly, he's never asked me about it", Mr. Trump said from the White House in an interview that aired Sunday on CBS News' "Face the Nation".
Mnuchin also confirmed that the infrastructure spending will not be included in the tax plan.
Trump has proposed ending that state and local tax deduction. There was only pro forma consultation with Congress and interest groups, and the effort will be directed by Treasury Secretary Steven Mnuchin and White House economic adviser Gary Cohn, who have no experience in guiding complicated legislation through Congress.
Trump's proposal would lower the corporate tax rate from 35 percent to 15 percent, reducing tax revenue into federal coffers by an estimated $2 trillion over 10 years.
"Retirement saving is an exemption not a deduction, and Sean was referring to deductions", a White House official told Business Insider.
Effectively, we'd borrow from China or other countries to finance huge tax breaks for Trump and his minions. In fact, it will close down the alternative minimum tax, launched in the 1960s to ensure that rich people reliant on loopholes in the tax code actually paid their fair share.
US President Donald Trump has proposed sharp cuts in individual and business income tax rates and a radical reordering of the tax code that would significantly benefit the wealthy, as he rushed to show progress before the symbolic 100-day mark of his presidency tomorrow.
As of this writing, Trump's tax plan is little more than a wish list and what form it takes when it is time to be signed by the chief executive remains to be seen. Tax brackets for individuals would be compressed from seven to just three 10 percent, 25 percent and 35 percent, lower than the current top rate of 39.6 percent.
New Yorkers claimed $68 billion in itemized deductions for state and local taxes in 2014, according to an analysis by the conservative Empire Center for Public Policy. Democrats will insist he do this before any tax bill is passed. In 2012, the state exempted pass-throughs from state income taxes, a move that was billed as a chance to spur so much business growth and job creation that it would raise money for the state treasury. He says the economy will grow so much after tax cuts that it will fully offset any lost tax revenues. We've been down this road under Presidents Ronald Reagan and George W. Bush.