President Trump has released a brief outline of his tax plan, as many American are still demanding that he release his tax returns to show if he has been paying his “fair-share” on taxes, if at all. While the President certainly has the right of refusal, the “court of public opinion” seldom grants such immunity.
Whether you lean right or left, the trump tax plan outlined on his own campaign’s website keeps consistent with the President’s “bull in a china shop” mentality and outlines drastic tax cuts not seen in office since the days of good ole Ronnie Reagan (Remember that guy?).
Here are the insights I’ve gathered from the outlined “Tax Reform That Will Make America Great Again”:
Income Tax rates get slashed: For those looking to keep more wages after taxes, the Trump Plan can benefit with a simpler bracketing system and the “lowest tax rate since World War 2”, according to the President. The system is cut down to 4 brackets at 0%, 10%, 20% and 25% as opposed to the 7-tier system currently in place and will eliminate the Marriage Penalty and the Alternative Minimum Tax (AMT). The President will also be including a provision eliminating the Death Tax. Singles making less than $25,000 and Married Couples making less than $50,000 will not see a dime come out of their check for Income Taxes. All-in-all these Income Tax changes for individuals will take an estimated 50% off tax rolls. Ron Paul supporters might favor the simplicity.
Big Business is poised for a resurgence: Businesses with money and operations overseas will be charged only 10% Repatriation of Corporate Cash held abroad. Keep in mind, this is a ONE-TIME ONLY deal and nothing would stop businesses from re-expatriating should the business earning suffer after the move. Deferrals of tax on tax income earned abroad will be put to an end as well as loopholes exploited by special interests groups and ridding redundancy’s made obsolete or unnecessary by the reform. Charitable giving and Mortgage Interest deductions will remain unchanged and tax exemption on life insurance interest for high-income will be phased out. The President says these business cuts will, “Provide a tremendous stimulus for the economy – significant growth, a huge number of new jobs and an increase in after-tax wages for workers.”
It will NOT make America great again: While Trump’s tax cuts are a breath of fresh air for small-businesses and individuals they are still just words being used to sell the product, or the “virtual brochure” to sell us on the idea before it is actually released and lays out a practical course of execution. If the American economy is to become great again, it must come as a concerted effort of individuals working toward a common goal for the betterment of mankind and not their own pocket. But I digress…
President Trump is confident in his Tax plan, despite early opposition among GOP leaders in some key Blue States and sure makes for an interesting read but is ultimately “all sizzle and no steak”. Until we can take a look at the actual proposed legislation, the President will be able to tell us anything he wants and America will be stuck in speculation mode. Just like on Twitter.