Trump Administration Proposes 'Massive' Tax Overhaul And Tax Cut Plan

Trump Administration Proposes 'Massive' Tax Overhaul And Tax Cut Plan

Trump Administration Proposes 'Massive' Tax Overhaul And Tax Cut Plan

But Treasury Secretary Steven Mnuchin stated categorically on Wednesday that the president has "no intention" of releasing them. The estate tax and the alternative minimum tax, which was responsible for most of President Donald Trump's taxes in 2005, would both be abolished. The administration's tax plan is supported by the hope that the economy will grow at a rate of 3 percent (up from about 1 percent currently) by the end of 2017.

Second, legislation should structure in a sensible way the "tax relief for families with child and dependent care expenses" that the White House promises.

■ High-income earners. The plan would reduce the top rate on individual income tax - now 39.6 percent for income over around $470,000 for a married couple - to 35 percent. But that's not double. "By 'additional growth, ' I mean over and beyond what forecasters typically predict", said Alan Cole, an economist at the Tax Foundation.

Most tax deductions are going away. President Trump's advisors offered few details about the plan, insisting the announcement was just a "broad-brush overview".

Assuming lawmakers can keep the government running, the next big item on the legislative agenda is tax reform.

If the plan is not deficit neutral beyond the 10-year time horizon, Trump will need to convince some Senate Democrats to vote for the bill. That plan reduced federal revenues by nearly 19 percent, according to a Treasury report. "We know the history, if the money doesn't come back into the United States it gets invested overseas", he said. There are surely doubters, many of them among the president's own party in the Congress, who are also waiting to see what this would do to the deficit - at the very least in the short term. It also proposes reducing the number of tax brackets from seven to three.

Trump's tax proposal would also lower the capital gains tax rate and would decrease the number of income tax brackets from seven to just three, while lowering the tax rate for the wealthiest individuals by almost 4 percentage points.

Trump's plan has the potential to provide big tax cuts to high-income families - unless you live in a state with high state and local taxes. "You saw past year, GDP at 1.6 percent".

The estate tax, for example, only kicks in for Americans inheriting more than $5.49 million from a deceased loved one.

Nevertheless, the nonpartisan Tax Policy Center found enough in this broad outline to say it would hugely benefit the wealthy, who'd see tax cuts averaging 13.5 percent.

Given that the plan is similar to what Trump proposed on the campaign trail, the Committee for a Responsible Federal Budget did a rough cost estimate of his latest ideas and concluded they could cost $5.5 trillion in lost revenue during the first decade.

Trump also wants major cuts to the federal budget, including cuts to some agency budgets and the elimination of other programs altogether.

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