The GOP's tax plan rollout burdened by familiar missteps

The GOP's tax plan rollout burdened by familiar missteps

The GOP's tax plan rollout burdened by familiar missteps

27, President Donald Trump unveiled his tax plan, and people are understandably confused about a lot of it.

The Trump administration and congressional Republicans released their latest framework for tax reform earlier this week, finally pushing forward a key campaign plank on which the president rallied support during the run-up to the 2016 election.

High-wage earners. One of the few new elements in the framework is a possible rate above 35% for high earners, to ensure the new system is "at least as progressive as the existing tax code".

"Tax reform will protect low income and middle income households, not the wealthy and well-connected", he said.

There clearly would be seismic changes for businesses large and small, with implications for companies beyond USA borders.

According to the official, the plan is not projected to add to the deficit, after accounting for the elimination of tax breaks, the base broadening, and increase in economic growth.

Language in last Wednesday's framework around retirement savings (lumped in with work and higher-education benefits) included the goal to "simplify these benefits to improve their efficiency and effectiveness".

Tax experts told CNBC that it would be hard for Congress to exempt such partnerships from the pass-through rate.

Employers are expressing optimism about provisions such as immediate and full expensing of business investments, a reduction of the corporate tax rate from 35 percent to 20 percent, and a new "pass-through" business tax rate of 25 percent.

The short video concludes by asking viewers to "let Senators Heitkamp and Hoeven know: not one penny more, not one penny in tax cuts to millionaires, billionaires, and wealthy corporations". The proposed framework "eliminates most itemized deductions" for taxpayers, except for home mortgage interest and charitable contributions.

"Around the world, governments are reducing their business tax rates to better compete for investment and create jobs", said James Pearson, chief executive of the Australian Chamber of Commerce and Industry.

Well, the Trump era of alternative facts lives on.

Taxpayers in the top 1 percent of incomes - above $730,000 - would receive about 50 percent of the total tax benefit from the tax overhaul, with their after-tax income forecast to increase an average of 8.5 percent, the group said.

Trump has yet to sign a major piece of legislation, after Congress failed repeatedly this year to pass a repeal of Obamacare, his predecessor's signature health care law. Thirteen of those 500 people are now serving in Trump's cabinet, and the elimination of the estate tax would give those very wealthy and well-connected people a $1.5 billion tax cut. Currently, a family of five pays no federal tax on their first $32,850 of income - $12,600 for the standard deduction plus $20,250 (or five times $4,050) for personal exemptions.

He continued, "That means, especially for all of you with small businesses that are really tremendous businesses, you'll be able to leave them to your family, and your family won't have to run out and do a fire sale to try and get the money to pay the tax".

Meanwhile, a think tank's analysis finds some middle-class New Yorkers could save a small amount of money under the income tax portion of the plan. And U.S. firms that have accumulated assets overseas would be able to bring them home with a one-time tax, payable over several years. Whether that would happen is the subject of heated debate. It's not safe to assume those state and local tax deductions are gone, tax experts said.

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