Trump's Tax Reform Plan

The Trump Tax Reform Plan

Where is the Trump Tax Reform Plan? Here is a compilation of news stories regarding the status of the Trump tax reform plan. There is no leadership on this issue.

Once again I will remind you that George W. Bush's tax plan was passed in late May of 2001 and signed into law on June 5, 2001. Ronald Reagan's first tax reform measure was signed on August 4, 1981.


February 9, 2017

Trump Says 'Big-League' Tax Reform Details Coming in Weeks
An announcement on tax reform is coming in a matter of weeks, President Donald Trump said Thursday.

Trump said his administration will soon provide more details on a much-anticipated plan to cut taxes, suggesting that corporations will see a significant reduction in taxes. He made the remarks before a meeting with airline executives at the White House.

“We’re going to … lower the overall tax burden on American businesses big-league. That’s coming along very well. We’re way ahead of schedule, I believe. We’re going to be announcing something, I would say, over the next two or three weeks,” Trump said.

Trump Says 'Big-League' Tax Reform Details Coming in Weeks


February 22, 2017

Trump: Tax reform plan is 'very well finalized' but will come after ACA repeal effort

President Donald Trump said Wednesday that a Republican tax reform plan is nearly done but reiterated it will come after an Affordable Care Act repeal measure.

"Before we do the tax — which is actually very well finalized — but we can't submit it until the health care statutorily or otherwise," Trump told reporters before a White House budget meeting. "So we're doing the health care — again moving along very well — sometime during the month of March, maybe mid-to-early March, we'll be submitting something that I think people will be very impressed by."

Trump: Tax reform plan is 'very well finalized' but will come after ACA repeal


March 24, 2017

Mnuchin: Trump 'ready to go' on tax reform

Treasury Secretary Steven Mnuchin said Friday that the White House is likely to release a tax-reform plan "pretty soon."

At an event hosted by Axios, Mnuchin said that the Trump administration has been working on tax reform for the last two months.

"This is something, because we are designing it from scratch and running through a lot of scenarios we've needed the last two months to work on. We would not have been ready to go a month ago on tax reform, and now we are," he said.

He said the goal was still to win congressional approval of the tax measure by August. But if the timeline is delayed, he said he expected the proposal to pass by the fall.

http://thehill.com/policy/finance/325607-mnuchin-white-house-tax-reform-plan-coming-pretty-soon


April 17, 2017

White House delays tax reform

The White House will not have its comprehensive tax reform package ready by August's congressional recess, Treasury Secretary Steve Mnuchin conceded in an interview with The Financial Times. About that original timeline, which Mnuchin had reiterated during an Axios event just weeks ago:

"It's highly aggressive to not realistic at this point."

White House delays tax reform


April 20, 2017

Mnuchin backtracks again on his tax plan

Treasury Secretary Steve Mnuchin today said that the White House would unveil its comprehensive tax reform plan "very soon," just days after telling The Financial Times that releasing a plan by August's congressional recess would be "highly aggressive to not realistic."

Mnuchin backtracks again on his tax plan

I wonder what they will say about it tomorrow? Next week?

 

The latest.




Sent from my Motorola Droid Turbo.

 

Are the two related? I mean, what does faith in God have to do with Trump's tax reform plans?

Were you an Obama supporter?

Sent from my Nexus 7 using Tapatalk

 

There are some procedural rules they have to follow to eliminate some taxes in Obamacare by a simple 51% margin. If they can get rid of these taxes before moving on to tax reform it gives them some sort of flexibility. I don't understand it all except to say the Republicans decided to approach it in this manner and now it appears they are handcuffed by their strategy.

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April 26, 2017 (morning)

The White House's presentation will be "pretty broad in the principles," said Marc Short, Trump's director of legislative affairs. In the coming weeks, Trump will solicit more ideas on how to improve it, Short said. The specifics should start to come this summer.

Short said the administration did not want to set a firm timeline, after demanding a quick House vote on a health care bill and watching it fail.

But, Short added, "I don't see this sliding into 2018."

Trump proposing tax cuts for companies big and small
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Ah, yes. First tax reform was to be done in the first 100 days. Then it was right after repeal of Obamacare. Then it was "very soon". Then it was "passed before the August recess, signed in September". Next it was "won't be ready by August recess". Now it is "don't see it sliding into 2018".

Well, excuse me, but all we've seen is the deadline slipping further and further into the future. Frankly, there is no reason to believe it WON'T slide into 2018. Everything else this administration has done has been slip, slidin', away.

 

Actually it's fairly ambitious.

1. Reducing seven tax brackets down to three tax brackets: 10%, 25%, and 35%.
2. Eliminating almost all write-offs and tax deductions; only retaining home mortgage interest deduction, IRA contribution deduction, and charitable giving deduction.
3. Doubling the standard deduction for married people.
4. Eliminating the Alternative Minimum Tax (AMT)
5. Eliminate the estate tax.
6. Reducing the top corporate tax rate from 35% to 15%.
7. Providing for a one time tax "holiday" to incentivize companies to bring trillions of dollars currently being held overseas back to the US.

There is a lot of good stuff here. I can support most of this in theory, just have to see what the details work out to be.

Right off the bat I have a problem with the wealthy getting the majority of tax rate reduction, from 39.6% down to 35%, while the vast middle class either stays at 25% bracket or gets a reduction from 28% to 25%. The rich should not be getting 4.6% reduction and the middle class nothing or only 3% reduction. But I'm in favor of tax rate reduction.

Eliminating all but those three deductions and doubling the standard deduction would greatly simplify tax filing preparation but would likely result in a slight increase in taxes paid. The biggie deduction that they are eliminating is the state and local taxes paid deduction. You will no longer be able to deduct your state income taxes, state sales taxes, or local income and/or sales tax. No more medical/dental expense deduction. No more college tuition deduction. No more capital loss write off.

Reducing the corporate tax rate from 35% to 15% is a good step, at least for large corporations. I don't know if I'm in favor of this to apply to S Corporations or not. S Corporations are 'pass through' entities where currently the business income is taxed at personal tax rates. Have to think about this one some more.

Get rid of the estate tax. Good riddance.

The tax holiday sounds good at first glance. If the effect is to get companies to move back here and accept 15% tax rate it will have worked. If it's only going to move profits and not jobs, not such a great idea.

 

"Moral atrocities"? Hyberbole, much?

 

Yep, sounds good.

Elimination of child tax credit? Not so good.

I would guess the overall tax reform plan would cause a slight increase in the net taxes paid. Supposing it was $800 more per married couple but you could file your taxes in half an hour or less? I think people would go for it. (Not me, though.)

 

The S Corp changes means that people will plow more income to themselves as dividends and take less in payroll wages. If I'm in the 25% tax bracket on personal income and I can take dividend income at 15% I know my money's coming out of dividends.

The top should get a cut, just not the biggest one. They should get a 1% or 2% cut, the middle class should get 4.6% or 5% cut.

With growth. (Ha ha! At least that's what Mnuchin said today. That's what they always say. That and cutting waste.)

Don't underestimate the loss of deductibility of state and local taxes paid.That's going to be significant income for the feds, especially in NY, CA, NJ, PA, etc.

 

Well, it's magic! Yes, that's it!

The tax holiday they're talking about would be a one-time boon. They're estimating at least $1 trillion would be brought back into the US to be taxed. That would be $150 billion right there.

Otherwise, perhaps a loss of tax revenues would cause a reduction in spending by Congress.

(HA HA HA HA HA!!)