Trump Touts 'Giant, Beautiful, Massive' Tax Plan to Manufacturers

Trump Touts 'Giant, Beautiful, Massive' Tax Plan to Manufacturers

President Donald Trump's tax reform plan includes a section that is meant to help small businesses, but it appears Wall Street financiers could be the ones to reap the benefits.

The official said the tax package is designed with the middle class in mind. On average phone and industrial companies pay the most at 30 percent or more, while real estate, energy and tech industry have the lowest, no more than 18.5 percent. About 95 percent of the businesses in the USA are structured as pass-through companies. Like most Republican tax proposals, it appears to be roughly neutral for middle-class families and a boon for the rich-though I'm sure the Tax Policy Center will provide the grim details soon.

But the blueprint does say lawmakers can add a fourth top rate above the 35% if they need to. "How does he plan to pay for all the infrastructure work he wants to do if no one is paying taxes?"

"There's nothing left. It's been wiped out", said Trump. A doubling of the standard deduction sounds promising, but the framework also repeals the highly valuable personal and dependent exemptions. The last major overhaul in 1986 was bipartisan, and Trump was courting Democrats. Joe Donnelly, accompanied the president on his trip to Indianapolis.

Financial markets rallied on the plan's unveiling, an event long anticipated by traders betting that stocks would benefit from both faster economic growth and inflation. That is, they get far more than their share of the tax cut.

Trump, in address to the National Association of Manufacturers, said he's working to lift burdens so businesses can "thrive, compete and grow".

The number of tax brackets would be collapsed from seven to three.

The plan wipes out the death tax, and offers good and bad news for small business, which will affect brokers and agents.

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But under Trump's proposal, Jones wouldn't pay any more than 25%. "No, I don't benefit". Republicans might split on parts of the plan.

"This huge tax cut will be the rocket fuel for our economy", Trump said. Bernie Sanders, I-Vt.

Over a decade, Trump's plan would cut business taxes by $2.6 trillion (the red bars), and lose another $240 billion by repealing estate and gift taxes (the yellow bars). Orrin Hatch, R-Utah, said his Senate Finance Committee would not be a "rubber stamp" for anyone. Without that key information, it's impossible to calculate what your taxes will be under the plan and compare them with your current tax liability.

Broadly speaking, on the individual side, the legislation would collapse the current seven tax brackets into three rates; almost double the standard deduction; eliminate personal exemptions; and increase the current per child tax credit by an unspecified amount. This basically would increase the amount of personal income that is tax-free. A Washington Post-ABC poll show big majorities oppose tax cuts for the rich, think the tax code favors the wealthy more than the middle class and don't support lower corporate taxes. "I remain opposed to eliminating the deductions for state and local taxes as this would represent, in effect, double taxation on the taxes paid to state and local governments". Republicans from those states are vowing to fight it. The credit now is $1,000 per child.

The proposal will eliminate most itemized deductions and repeal the individual alternative minimum tax because it adds to the complexity of the code.

The top individual tax rate is 35 percent.

President Donald Trump has promised "massive tax cuts" to help middle-income families.

But the 10-point gap between the proposed pass-through rate and the ordinary wage income rate could tempt a lot of people to recharacterize their paychecks as profits to get the lower rate. The bottom bracket goes up and the top bracket goes down.