Hard to like Donald Trump's tax plan so far

Hard to like Donald Trump's tax plan so far

The plan cuts the maximum corporate tax rate from 35 percent to 15 percent, a clear potential savings.

But in reality, hundreds of companies have already figured out how to pay less than that - in some cases, a lot less. In fact, 44 percent of all USA households pay no federal income tax, though most pay other taxes.

Some Republicans, particularly in high-tax states, expressed concern about the proposed repeal of certain existing provisions. It also would eliminate a 3.8 percent tax, used to help fund Obamacare, that applies to investment income over $250,000 for a couple. If it's a choice between the current tax code and one that implements these recommended changes, we'd be better off taking Trump's tax package.

At first blush, it appears to be smaller than President Ronald Reagan's 1981 tax cut, the biggest ever. Depending on where you live, and how many deductions you take, you might end up paying more.

But the proposal also would eliminate the practice of deducting state income taxes and local property taxes from federal income taxes, and that could harm taxpayers in states with high local taxes, like NY. "Can't guarantee that. The whole thing is skewed to the very very wealthy". It would whittle the number of tax brackets for individuals from seven to three, lower the top tax rate from 39.6 percent to 35 percent and double the standard amount taxpayers could deduct. How much a middle class family could expect in tax cuts, and whether the plan would be revenue-neutral.

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"It does not tilt toward the middle class as he indicated that it would during the course of the presidential campaign, and secondly, I think we're all trying to figure out what's between a tweet and a one-page, double-spaced tax plan - that's all that we saw yesterday, there was no architecture", he said in an interview. Even large, profitable corporations paid an average federal rate of only 14 percent - and Boeing, Verizon, General Electric and Priceline paid no federal income tax over a five-year period, according to Citizens for Tax Justice.

The Trump blueprint for tax reform has been unveiled, and there is good news and bad news for just about every taxpayer. That plan reduced federal revenues by nearly 19 percent, according to a Treasury report. They come from a combination of recent statements, tweets and last year's Republican blueprint on tax reform.

Third, the plan would create an worldwide race-to-the-bottom on corporate tax rates that the USA can't win. In today's dollars, that would mean a tax cut of more than $600 billion a year or well over $6 trillion over the next decade. After 1986, the last time the USA cut corporate tax rates, other countries followed with a series of corporate rate cuts.

But Trump's proposal lacks the hard details about making the tax code simpler and more efficient in ways that don't add to the federal government's mounting debt.