The Trump administration's proposed new tax plan (email)

Email | 6/01/17

[Libloather]

President Trump’s Tax Plan Summary

Here is some information about the proposals included in President Trump’s tax plan. Remember that this plan is not a law and has not yet even been introduced to Congress as a bill, and that a bill must be passed by both the House and the Senate and then signed by the President. So there is no way to know what will be passed (if anything). This is just a summary of the proposals, without comment. The plan released by the President is a one page plan, so most other details are not available beyond this summary.

Business Changes

C corporation tax rates would be reduced from the current highest rate of 35% to a new flat rate of 15%. Pass-through S corporation and LLC income would also be taxed at 15% rate for small and medium sized businesses (which were not defined). Corporations would no longer be taxed on a worldwide system, but would be taxed on a territorial system, and a one-time repatriation tax would apply on the foreign earnings of US companies.

The proposal does not include a provision allowing expensing of all business assets, as originally discussed.

Individual Changes

The President wants to reduce the current seven different individual tax brackets to three brackets, with rates set at 10 percent, 25 percent, and 35 percent. The President also wants to double the standard deduction to $24,000 for MFJ, repeal alternative minimum tax and the estate tax and expand the credit for child and dependent care expenses, while also repealing the dreaded net investment income 3.8% surtax.

With the new standard deduction and changed brackets, individual taxpayers with taxable income less than $25,000 and married taxpayers with taxable income less than $50,000 would owe no Federal income tax.

Most individual itemized deductions would be repealed, but the deduction for mortgage interest and charitable donations would be retained.

[Libloather]

It's a start. Say, doesn't Russia have a flat tax?

[CincyRichieRich]

Source for the information?

[DoughtyOne]

FReepers, it's time to get serious about retiring this FReep-a-thon.


President Donald J. Trump and the Free Republic of the United States of America

Ramirez political cartoon: the Price of Freedom LARGE VERSION 05/28/2017: LINK  LINK to regular sized versions of his political cartoons (archive).

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...this is a general all-purpose message, and should not be seen as targeting any individual I am responding to...

Just $657.00 to 68.00%

[Repeal The 17th]

Hey, I get emails everyday.
Do you want to hear about mine?

[oincobx]

The best part about this tax plan is that it both repeals the estate tax AND brings in over $320B in estate taxes over 10 years. That is some 3D chess right there.

[Ray76]

> Pass-through S corporation and LLC income would also be taxed at 15%

Then it’s no longer pass-through

[plain talk]

The best part about this tax plan is that it both repeals the estate tax AND brings in over $320B in estate taxes over 10 years.

How does it do that?

[oincobx]

>>>How does it do that?

It can’t. But that was what was in the budget presented by OMB director Mick Mulvaney.

[Libloather]

My tax dood.

[RKBA Democrat]

Sure. I got one today from the Energy minister of Nigeria. I have a once in a lifetime offer to make some real money. It’s kinda hush-hush, though.

Easy street here I come!

[willk]

“With the new standard deduction and changed brackets, individual taxpayers with taxable income less than $25,000 and married taxpayers with taxable income less than $50,000 would owe no Federal income tax.”

Everyone should have to pay something. The unanswered question is what are the incomes between the 3 brackets?