Posted on 04/26/2017 9:33:29 AM PDT by davikkm
With financial markets eagerly anticipating a White House tax plan, Trump will also call for a sharp cut in the top rate on pass-through businesses, including many small business partnerships and sole proprietorships, to 15 percent from 39.6 percent, an administration official said.
Trumps primary goal appears to be lowering the corporate tax rate from 35 percent to 15 percent, according to the Wall Street Journal. Its a drastic cut, and lower than the 20 percent rate proposed by House Republicans. The 15 percent rate alone could cost $2.4 trillion over 10 years, according to budget estimates. Lowering the corporate tax rate is a popular idea, particularly because the United States has one of the highest in the world. This has encouraged multinational corporations to shift billions of profits to lower-tax countries as a way to decrease their tax bill.
The only provision so far that will raise some money is a one-time 10 percent tax on foreign profits that US multinational corporations have stashed overseas. Right now, American companies have $2.6 trillion in untaxed income earned abroad a move many use to avoid paying the 35 corporate tax rate. Trumps repatriation holiday is supposed to encourage them to bring that money back at a lower tax rate, though there is no telling how many companies would do so.
(Excerpt) Read more at investmentwatchblog.com ...
One issue is that of a border adjustment tax. The tax is complicated, but the gist is this: Companies would not be taxed on goods they export out of the United States, but would be taxed on goods they import into the US. It would fundamentally change how American businesses are taxed, prioritizing domestic production. This was a key part of the House Republican plan and it was essential to raising revenue so the plan would pay for itself and comply with the complex Senate rules that allow Republicans to pass a bill with a bare majority in the upper chamber. vox
As a result of President Trumps commitment to the major issues facing small businessesincluding taxes, regulations, and healthcare reformthe new JCN poll finds that nearly 60 percent of them believe that Trump will have a positive effect on their business, employees, and customers. This bodes well for the U.S. economy. There are 29 million small businesses in America, providing employment for roughly half of the U.S. workforce and impacting 85 million people in total.
In short, President Trumps proposal to cut the tax rates will allow business owners to invest more of their resources in hiring, expansion, and their communitieskeeping more money on Main Street rather than sending it off to Washington, D.C.
Then presto! It was a breath of fresh air. We started entry level then walked gradually up the ladder! From flipping burgers and cleaning toilets to managing our own businesses.
Until Obama came around and ruined it.
Happy days will be here. The wall can wait. Trump should get the spending bill passed with these massive cuts in taxes and we'll be working in no time!
SO SICK of these static estimates. Dropping the top rate grows the economy, increasing business activity, which increases government takings, which will cover the so-called "cost" of reducing the tax rate.
And moreover, the bit about "cost." Republicans in Congress are just as statist as the Democrats are, it seems. Letting us keep OUR OWN MONEY is portrayed as a "cost" to government. Makes me mad!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.