Trump's Possible Savings With New Tax Plan: $1B

Trump's Possible Savings With New Tax Plan: $1B

Trump's Possible Savings With New Tax Plan: $1B

IN already balances its budget on the backs of working families with one of the most regressive tax systems across the country.

It also seeks to simplify the tax system, with the rates being 12%, 25% and 35%. It's still in process, so we don't know for sure where these cuts would end up, but according to Vox, the new framework is very reminiscent of Paul Ryan's last tax plan. Trump offered to lower corporate income tax rates, cut taxes for small businesses and reduce the top income tax rate for individuals. "It has been 30 years since most Americans have seen any real wage gain".

This isn't some hidden truth known only to economists. Also helping to boost the dollar, the plan included lower one-time low tax rates for companies to repatriate profits accumulated overseas, which analysts say would lead to a temporary phase of sizable dollar buying.

But that may not cover the taxes, King and other politicians said. This would allow companies to write off the cost of investments they make in their own workplace immediately, such as the cost of office space needed to hire additional workers.

Right now, the proposal is just that, a proposal, and not law.

Without full expensing, the current system will continue to keep the cost of investing artificially high, thus discouraging business expansion.

We think President Trump's tax reform and reduction framework fulfills his campaign promise on taxes and will make a substantial contribution toward economic growth.

But it could also mean a windfall for partners in private-equity, venture-capital and hedge funds, unless Congress can figure out a way to block them from taking advantage of the new rate.

"When you combine that (the proposed changes in deductions) with the other things we're going to do like doubling the standard deduction and lowering marginal rates, this is going to be a net savings", U.S. Sen. The Freedom Caucus looks forward to sending a final bill based on this framework to President Trump's desk as soon as possible. Interest rates remain fairly low, and to the extent that they're not super-duper low it's because the Federal Reserve is slowly but surely trying to raise them, even though there's no sign of inflation. That sounds good in theory, but as soon as Congress gets specific, K Street lobbyists will swarm Capitol Hill to protect their favorite handouts. Taxpayers in the bottom 95 percent would see tax cuts averaging 1.2 percent of after-tax income or less next year. In Western New York, the average would be $2,967.

The tax code should not be used to pick winners and losers. Dave Argall, R-Schuylkill County and a leader of the property tax elimination movement in the state legislature.

There are countless other examples of preferences that need to go: the research and development tax credit, education tax credits, and the exclusion for municipal bond interest, the deduction for USA production activities, and the credit for low-income housing investments, to name just a few.

The deduction only benefits people who itemize on their federal tax returns. The framework, along with tax principles Democrats have laid out this year, are just the starting point.

The plan, which is big on bold strokes but skimpy on details, would decrease the number of tax brackets to three, with rates of 12 percent, 25 percent and 35 percent, and increase the standard deduction.

"We're going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans and we are going to bring back the jobs and wealth that have left our country", said President Trump on Wednesday.

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