Jim Hoft Apr 26th, 2017 1:03 pm
The Trump Administraion announced their proposed tax plan on Wednesday. The new plan cuts corporate taxes and middle class taxes. The law reduces the seven brackets to three brackets. The business tax will be reducedt to 15%. The new law also repeals the death tax.
WATCH: Gary Cohn explain President Trump’s tax reform proposals.
The Hill reported:
An overview of President Trump’s tax plan obtained by a CNN reporter says that the proposal will include tax relief for the middle class and do away with the estate tax and the alternative minimum tax (AMT)…
– There would be tax relief for middle-income families and provisions aimed at helping people with childcare costs.
– The current seven individual income tax brackets would be collapsed into three. (Journalists at Bloomberg and Fox News are reporting that the rates will be 10 percent, 25 percent and 35 percent, which are slightly different from the rates in Trump’s campaign plan and the House Republican blueprint.)
– The corporate tax rate would be reduced to 15 percent, and small businesses would also be eligible for this rate. (Mnuchin confirmed this provision at an event hosted by The Hill Wednesday morning.)
– The alternative minimum tax, the estate tax and ObamaCare’s 3.8 percent surtax on net investment income for high earners would all be eliminated.
– All itemized deductions except those for mortgage interest and charitable contributions would be eliminated. Other tax preferences would also be repealed.
– The U.S. would move to a “territorial” tax system that does not tax U.S. corporations’ foreign earnings. Companies’ earnings that are currently held abroad would face a onetime tax.
To me, the one thing that he missed out in spades pertains to the last provision and is the very thing that is causing so many Americans to renounce their citizenship… If they can make taxes ‘territorial’ for corporations, then an American living and earning abroad should have the same consideration.