Good for biz, if you ‘believe’ it
3 MILLION IN CITY FACE HIKES
THE MAN WHO brought America Trump Steaks, Trump Shuttle and Trump Vodka has a new product to sell to the nation: Trump Taxes.
President Trump on Wednesday announced his plan for a “revolutionary” overhaul of the federal tax code, one he said would sharply reduce corporate and individual rates.
Trump said the Republican plan would produce a “middle-class miracle” — even though it appears its heftiest breaks go to corporations and the wealthy, including wiping out taxes on large inheritances and sharply cutting corporate tax rates.
“This is a revolutionary change, and the biggest winners will be middle-class workers as jobs start pouring into our country, as companies start competing for American labor, and as wages continue to grow,” Trump said during a speech in Indianapolis.
“This will be the lowest top marginal income tax rate for small and midsize businesses in more than 80 years.”
The billionaire President — who has refused to disclose his income tax returns, which would show how he’d be affected by any tax cut — added: “I’m doing the right thing, and it’s not good for me, believe me.”
Trump didn’t offer details to explain how workingand middle-class people would benefit. And his proposal didn’t answer several critical questions, including the tax rate for the nation’s highest earners.
Under the nebulous framework he laid out, a nearly $6 trillion tax cut would deeply reduce levies for corporations, simplify all brackets and nearly double the standard deduction used by most Americans, he said.
But there were too many gaps to know how individual families and taxpayers would be impacted — or what it might add to the $20 trillion national debt.
With Republicans smarting from the recent collapse of health care repeal and hungry for a legislative win ahead of next year’s midterm elections, the GOP leadership lined up behind Trump.
“This is a now-or-never moment,” said House Speaker Paul Ryan (R-Wis.).
Senate Minority Leader Chuck Schumer said the plan fell far short of helping all Americans.
“Each of these proposals would result in a massive windfall for the wealthiest Americans and provide almost no relief to middle-class taxpayers who need it most,” the New York Democrat said.
Trump’s proposed business tax changes include: l A 20% corporate tax rate — a slight change from his campaign promise of 15%. The current statutory federal rate is 35%. l Elimination of some business deductions, industry-specific incentives, and more that the plan lumps under “streamlining” of business tax breaks. l A repatriation tax. Overseas assets from U.S.-owned companies would be considered repatriated and taxed at a one-time lower rate — a sweetener to bring corporate profits back from overseas.
Proposed personal tax changes include: l Three tax brackets, with the lowest rate being 12%. That’s a slight increase from the lowest rate now, which is 10%. l A middle tax bracket of 25% — but with no incomes specified in the plan, it’s hard to know whom this affects. l A top individual tax rate of 35%, down from the current 39.6%. l The plan also presents the possibility of a fourth tax bracket at a rate higher than 35% if the tax-writing committees wish. l Eliminates the estate tax, also known as the “death tax,” on inheritances of $5.49 million or more. l Increases the child tax credit to make the first $1,000 refundable.