Is Trump tax reform a step forward or backward?

The Internal Revenue Service building in Washington

The florist has a range of possibilit.

(AP Photo/Andrew Harnik). National Economic Director Gary Cohn, right, yields the podium to Treasury Secretary Steve Mnuchin in the briefing room of the White House in Washington, Wednesday, April 26, 2017, where they discussed President Donald Trump t.

These are the people who have been left behind by an increasingly globalized economy. The White House proposed to remove almost all tax deductions, including those at the state and local level. But Trump's top economic adviser used some bad math to describe the proposal, raising questions.

Standard deductions and individual deductions: The new plan would double the standard deduction, which is now $6,350 for single filers and $12,700 for married couples. But that's not double. Whom does it benefit? This will either require huge cuts in programs for the poor, or additional tax revenues from the rest of us.

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.

Assuming lawmakers can keep the government running, the next big item on the legislative agenda is tax reform.

"I'm glad the president showed the courage to release his tax proposal". Trump's plan proposes to eliminate this altogether. States with high state income tax rates tend to vote for Democrats. However, they disagree widely on how much higher. Instead, they are likely to simply enjoy the temporary tax break on income from investments they made in the past, without necessarily creating new jobs.

They also happen to include most every entity in the Trump family's vast financial portfolio - from golf clubs to hotels to real estate developments to Trump-branded products and ventures.

For example, the plan promises to reduce the tax brackets to 10 percent, 25 percent and 35 percent, but doesn't say who would fall into those categories. But we don't know the income levels for those brackets, so we have no idea how that would affect individual taxpayers.

The Trump administration touted the tax plan, released Wednesday, as "the biggest tax cut" in history and promised the plan would pay for itself by allowing more American citizens and businesses to keep their income.

"New Jerseyans are usually higher income producers than other parts of the country, and if there are reductions in personal income tax rates, that may offset some of that", Christie said.

The only reason they had their fact-starved press conference was to give Trump something else to brag about in his over-hyped and achievement-started list of first hundred days achievements. Wealthy people like Trump can pass on $11 million tax free to their family. Without it, he would have owed just $5.5 million.

This much we do know about the Trump plan: it will slash taxes on the wealthiest like the presenters. "That is a bad situation for this country but last year is not this year". "You saw previous year, GDP at 1.6 percent".

Alternative Minimum Tax repeal: As he mentioned in his campaign, Trump wants to repeal the AMT.



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