Wednesday, April 26, 2017

President Trump’s tax reform plan highlights

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This morning the Whitehouse announced President Trump’s tax plan for a 15% tax rate for corporations and businesses. This is how it would pan out...

*The corporate tax rate would be slashed from 35% to 15%―saving the six largest U.S. banks a combined $12 billion annually.

*Banks that stash huge profits offshore would be allowed to bring those profits home at a fraction of the price―saving the six largest U.S. banks an estimated $25 billion in taxes.

*Hedge fund managers and Wall Street CEOs would see a two-thirds cut in their individual tax rates―equaling a $1.5 trillion tax giveaway mostly to Wall Street billionaires and the richest 1 percent.

- compiled by Daily Kos

They announced that they would be simplifying tax forms. The only deductibles would be mortgage interest and charitable contributions. 

Nina Ozlu Tunceli of the Arts Action Fund wrote:

This afternoon, the White House released highlights of President Trump’s tax reform plan (see above). The proposal would reduce tax rates on individuals and businesses. It would also double the standard deduction for individual taxpayers, which would reduce the number of people who itemize their deductions. The plan also states that it would close many of the deductions available to itemizers, except for the home mortgage interest deduction and the charitable deduction. Above is a copy of the plan’s summary that was passed out at the White House briefing today.

More details about the plan will continue to evolve along with Congressional proposals for tax reform. While the charitable deduction is preserved in the current proposal, its impact could actually be weakened by the fact that many middle-class taxpayers would no longer be able to itemize their deductions, like charitable contributions, because of the larger standard deduction. While the standard deduction assumes that taxpayers make charitable contributions, there is no specific incentive nor requirement to prove charitable donations were made.

To get the latest on other tax proposals and their impact, as well as Americans for the Arts “Statement on Tax Reform and the Charitable Contribution Deduction,” please visit the Arts Mobilization 

Watch The Young Turks thoughts here.

Read former secretary of labor Robert Reich's thoughts here

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