GOP seeks more tax cuts for the rich & corporations

GOP seeks more tax cuts for the rich & corporations

GOP seeks more tax cuts for the rich & corporations

President Donald Trump said the "rebirth of American industry is beginning" as he pushed his tax plan to the National Association of Manufacturers Friday.

The GOP tax framework, unveiled earlier this week, already has run into some criticism - especially from high-tax blue states - for a call to eliminate certain itemized deductions on state and local income and property taxes. However, it would mean a substantial tax increase for middle-income taxpayers in high-tax states like California and NY.

While most taxpayers would benefit at least modestly, taxes would increase for others, particularly those with incomes of $150,000 to $300,000.

"Taxpayer groups in the bottom 95% of the income distribution would see modest tax cuts, averaging 1.2% of after-tax income or less".

But the top 0.1% of income earners (those making above $US3.43 million) would get a tax break of $US722,510 on average, or 6.8 percentage points.

"The biggest winners will be everyday working families, as jobs start pouring into our country", Trump said.

Mr Trump said the measure would help U.S. businesses "thrive, compete and grow".

The top income tax bracket will be reduced from 39.6% to 35% for individuals and to 20% for corporations (although the Framework holds out the possibility that an additional tax bracket above the 35% bracket could be applied to the "highest-income taxpayers").

"President Trump has promoted the tax package ... as an historically large tax cut for the middle-class and a tax increase for the highest-income households".

When asked in a poll if they want tax simplification, most Americans say "yes". The framework document also mentions eliminating "numerous other exemptions, deductions and credits" to further simplify the process and allow for lower tax rates.

From 2028 to 2037, a majority of upper-middle income taxpayers would see tax increases, due largely to the tax plan's inflation indexing.

A Tax Policy Center estimate of the fuzzy April framework found that it would lower revenue between $3.5 trillion and $7.8 trillion over a decade, depending on which loopholes you assume get closed.

The entire cost of the plan comes from its corporate tax provisions, TPC finds. The plan will increase the federal deficit by about $2.4 trillion over the first decade - nearly wholly due to the lower corporate tax rate.

President Donald Trump's economic adviser is pushing back against the suggestion that the administration's tax plan could benefit the wealthy.

The Tax Policy Center noted that its analysis was preliminary, based on a proposal that itself lacked key information, such as the proposed income brackets that would correspond to the three new tax rates Republicans envision replacing the current seven. Under the Trumpublican plan, my tax burden in 2017 would shrink by $500.

The Trump plan, in exchange for dropping some of the deductions and personal exemptions, would increase the standard deduction all taxpayers are eligible for to $24,000 for a married couple, filing jointly, or to $12,000 for a single filer.

Everyday Hoosiers would be the big losers, says Butler University professor Gregory Shufeldt: "This plan shortchanges IN because the vast majority of the benefits are felt at the top of the economic ladder".

The White House did not immediately respond to a request for comment.

The proposal's instructions to the Finance Committee could allow a partial repeal of Obamacare, although panel Chairman Orrin Hatch has said he will keep that separate from a tax overhaul.

For those who know nothing about corporate taxes, it's fairly simple to understand that our rate puts us at a global disadvantage.

And many people wouldn't get a tax cut at all.

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