Yesterday, Trump released the most important details of his tax plan.
The latest details on Trump's tax plan according to the WSJ:
"The plan largely hews to tax-cut proposals Mr. Trump made during his presidential campaign last year, but it includes several crucial changes. Most notably, Mr. Trump is proposing to repeal a provision of the tax code that allows individuals to deduct the state and local taxes they pay from their reportable income. That will hurt residents of high-tax states such as New York, New Jersey and California and spur objections from some Republican lawmakers in those states.
Mr. Trump is also proposing a 35% top tax rate for individuals, down from today’s 39.6% rate but above the 33% rate he backed during the campaign. Lower brackets would be set at 10% and 25%, and the standard deduction for individuals would be doubled.
The corporate tax rate would drop to 15% from 35%, and U.S. companies would owe little or no tax on their future foreign profits. The tax rate on business income reported on individual returns would also drop to 15% instead of being taxed at individual tax rates.
Mr. Trump’s plan leaves several crucial issues unresolved, including whether companies could immediately write off capital expenses, where to set the one-time tax rate on U.S. companies’ stockpiled foreign earnings, how a break for child care would be structured and where the tax brackets for individuals would be set."
This tax plan is mostly what Trump ran on, but some parts have been changed. Instead of a 20 percent business tax Trump ran on, for now it is proposed at 15 percent.
Also, Trump said that the maximum tax bracket would be at 33 percent compared to the present 35 percent.
While Democrats immediately began complaining about the ability of the tax cuts to pay for themselves, they showed little concern about Obama nearly doubling the entire US debt within his two terms. The recovering economy would significantly be boosted with this plan, making up most of the difference in decreased federal revenue. It does seem like a stretch to believe it will completely pay for itself.
However, people quickly forget Trump's own words. He's a business man. He has already explained over and over that he is willing to negotiate. He has stated numerous times on the campaign trail that he will ask for the best while settling for something good. And, when in doubt, he is willing to walk away from the negotiating table.
Look what happened with NAFTA. Canada and Mexico were not budging when it came to economic policy changes in trade, but Trump threatened to pull out of the deal overall. In minutes, both Mexico and Canada agreed to renegotiating the flawed deal. This is the kind of thinking that we need. Washington could take a lesson from Trump.
Surely, Trump has come out with higher standards than what he plans to settle on, something Paul Ryan couldn't figure out when it came to the failed health care bill. The business tax will most likely rise back to 20 percent, and the government will continue to collect enough revenue despite the Democratic fear mongering. This is the tax plan conservatives have been drooling for.
Sadly, Paul Ryan and the rest of the establishment don't really get it. Most probably still don't understand why Trump was elected, and most don't know how to keep the Democrats from walking all over them.
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