Posted on 10/23/2017 8:11:03 AM PDT by CodeToad
Too few Americans are working, too many jobs have been shipped overseas, and too many middle class families cannot make ends meet. This tax plan directly meets these challenges with four simple goals:
1. Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages.
2. Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money.
3. Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again.
4. Doesn’t add to our debt and deficit, which are already too large.
1. If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – over 50% – from the income tax rolls. They get a new one page form to send the IRS saying, “I win,” those who would otherwise owe income taxes will save an average of nearly $1,000 each.
2. All other Americans will get a simpler tax code with four brackets – 0%, 10%, 20% and 25% – instead of the current seven. This new tax code eliminates the marriage penalty and the Alternative Minimum Tax (AMT) while providing the lowest tax rate since before World War II.
3. No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.
4. No family will have to pay the death tax. You earned and saved that money for your family, not the government. You paid taxes on it when you earned it.
The Trump tax cuts are fully paid for by:
1. Reducing or eliminating most deductions and loopholes available to the very rich.
2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate, followed by an end to the deferral of taxes on corporate income earned abroad.
3. Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.
America needs a bold, simple and achievable plan based on conservative economic principles. This plan does that with needed tax relief for all Americans, especially the working poor and middle class, pro-growth tax reform for all sizes of businesses, and fiscally responsible steps to ensure this plan does not add to our enormous debt and deficit.
This plan simplifies the tax code by taking nearly 50% of current filers off the income tax rolls entirely and reducing the number of tax brackets from seven to four for everyone else. This plan also reduces or eliminates loopholes used by the very rich and special interests made unnecessary or redundant by the new lower tax rates on individuals and companies.
When the income tax was first introduced, just one percent of Americans had to pay it. It was never intended as a tax most Americans would pay. The Trump plan eliminates the income tax for over 73 million households. 42 million households that currently file complex forms to determine they don’t owe any income taxes will now file a one page form saving them time, stress, uncertainty and an average of $110 in preparation costs. Over 31 million households get the same simplification and keep on average nearly $1,000 of their hard-earned money.
For those Americans who will still pay the income tax, the tax rates will go from the current seven brackets to four simpler, fairer brackets that eliminate the marriage penalty and the AMT while providing the lowest tax rate since before World War II:
| Income Tax Rate | Long Term Cap Gains/ Dividends Rate | Single Filers | Married Filers | Heads of Household |
| 0% | 0% | $0 to $25,000 | $0 to $50,000 | $0 to $37,500 |
| 10% | 0% | $25,001 to $50,000 | $50,001 to $100,000 | $37,501 to $75,000 |
| 20% | 15% | $50,001 to $150,000 | $100,001 to $300,000 | $75,001 to $225,000 |
| 25% | 20% | $150,001 and up | $300,001 and up | $225,001 and up |
With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant. Those within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions.
Those within the 25% bracket will keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers.
Simplifying the tax code and cutting every American’s taxes will boost consumer spending, encourage savings and investment, and maximize economic growth.
Too many companies – from great American brands to innovative startups – are leaving America, either directly or through corporate inversions. The Democrats want to outlaw inversions, but that will never work. Companies leaving is not the disease, it is the symptom. Politicians in Washington have let America fall from the best corporate tax rate in the industrialized world in the 1980’s (thanks to Ronald Reagan) to the worst rate in the industrialized world. That is unacceptable. Under the Trump plan, America will compete with the world and win by cutting the corporate tax rate to 15%, taking our rate from one of the worst to one of the best.
This lower tax rate cannot be for big business alone; it needs to help the small businesses that are the true engine of our economy. Right now, freelancers, sole proprietors, unincorporated small businesses and pass-through entities are taxed at the high personal income tax rates. This treatment stifles small businesses. It also stifles tax reform because efforts to reduce loopholes and deductions available to the very rich and special interests end up hitting small businesses and job creators as well. The Trump plan addresses this challenge head on with a new business income tax rate within the personal income tax code that matches the 15% corporate tax rate to help these businesses, entrepreneurs and freelancers grow and prosper.
These lower rates will provide a tremendous stimulus for the economy – significant GDP growth, a huge number of new jobs and an increase in after-tax wages for workers.
The death tax punishes families for achieving the American dream. Therefore, the Trump plan eliminates the death tax.
The Trump tax cuts are fully paid for by:
1. Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. The Trump plan also phases out the tax exemption on life insurance interest for high-income earners, ends the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and are not risking their own capital, and reduces or eliminates other loopholes for the very rich and special interests. These reductions and eliminations will not harm the economy or hurt the middle class.
Because the Trump plan introduces a new business income rate within the personal income tax code, they will not harm small businesses either.
2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate. Since we are making America’s corporate tax rate globally competitive, it is only fair that corporations help make that move fiscally responsible. U.S.-owned corporations have as much as $2.5 trillion in cash sitting overseas. Some companies have been leaving cash overseas as a tax maneuver. Under this plan, they can bring their cash home and put it to work in America while benefitting from the newly-lowered corporate tax rate that is globally competitive and no longer requires parking cash overseas. Other companies have cash overseas for specific business units or activities. They can leave that cash overseas, but they will still have to pay the one-time repatriation fee.
3. An end to the deferral of taxes on corporate income earned abroad. Corporations will no longer be allowed to defer taxes on income earned abroad, but the foreign tax credit will remain in place because no company should face double taxation.
4. Reducing or eliminating some corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.
Revamp the alternative minimum tax to apply to everyone and require that tax payers pay the greater of their normal calculated tax bill -or- 5%, whichever is greater.
Create the alternative maximum tax to apply to everyone and allow the taxpayer to choose to pay either their calculated tax bill -or- 25%, whichever is lower.
Why isn’t this from the WH website?
But what about:
mortgage interest deductions
property taxes
state income taxes..?
thanks in advance.
This is not the current plan....notice the wrong tax brackets and rates...
What Trump proposed during the campaign and what Congress is working on now bear very little resemblance to each other.
Because it was campaign promises and not promises from the administration.
Ah, then useless. Not bashing Trump’s tax plan, but this ain’t it.
If this is what makes it through the GOP Congress, I’ll STFU.
Noting that I gladly voted for Trump and do not regret doing so, please consider the following.
I surmise that constitutionally low-information Pres. Trump has had no choice but to surround himself with post-FDR era, institutionally indoctrinated, state sovereignty-oblivious advisors who cannot tell Congress’s constitutional Article I, Section 8-limited powers from a horse’s arse.
So it’s not surprising that Trump’s tax plan makes no mention of either the fed’s constitutional Article I, Section 8-limited powers, or the Supreme Court’s clarification of Congress’s limited power to appropriate taxes, Congress able to tax only for things that it can justify under those Section 8 powers.
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States."—Justice John Marshall, Gibbons v. Ogden, 1824.
Patriots need consider that the 2016 elections are arguably not over yet, patriots still needing to do what Trump cannot do, exercising their voting muscle by doing the following.
Patriots need to make sure that there are plenty of state sovereignty-respecting, Trump-supporting patriot candidates on the 2018 primary ballots and pink-slip anti-Trump career lawmakers by sending patriot candidate lawmakers to DC on election day 2018.
Patriot lawmakers will then support Pres. Trump by legislatively forcing the unconstitutionally big federal government back into its Section 8-limited power cage.
Patriots need to qualify candidates by asking them why the Founding States made the Constitution’s Section 8 of Article I; to limit (cripple) the federal government’s powers.
Patriots also need to make sure that candidates are knowledgeable of the Supreme Court's clarifications of the federal government’s limited powers listed here.
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” Justice John Marshall, Gibbons v. Ogden, 1824.
"State inspection laws, health laws, and laws for regulating the internal commerce of a State, and those which respect turnpike roads, ferries, &c. are not within the power granted to Congress [emphases added]." —Gibbons v. Ogden, 1824.
”From the accepted doctrine that the United States is a government of delegated powers, it follows that those not expressly granted, or reasonably to be implied from such as are conferred, are reserved to the states, or to the people. To forestall any suggestion to the contrary, the Tenth Amendment was adopted. The same proposition, otherwise stated, is that powers not granted are prohibited [emphasis added].” —United States v. Butler, 1936.
Also, unlike career members of Congress who wrongly remained silent while misguided state officials abridged the constitutionally enumerated rights of citizens during the lawless Obama Administration, patriots need to make sure that candidates on the 2018 primary ballots commit to the following.
Candidates need to commit to making and enforcing 14th Amendment-related laws to prosecute misguided state officials who use state powers to abridge constitutionally enumerated protections, 1st Amendment-protected religious expression and free speech for example, such actions prohibited by Section 1 of the 14th Amendment.
”14th Amendment, Section 1: All persons born or naturalized in the United States and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States [emphasis added]; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.”
Drain the swamp! Drain the swamp!
Without question the federal government has massive issues beyond the tax code.
We have yet to crack the tax nut because every politicians sans Reagan violated their campaign promises to help correct things, except Trump.
Trump is doing what he can and he has done far more than anyone else in decades. This tax plan of his is another giant step in the right direction. It isn’t the end of the journey but it cracks the tax nut wide open.
Without question the federal government has massive issues beyond the tax code.
We have yet to crack the tax nut because every politicians sans Reagan violated their campaign promises to help correct things, except Trump.
Trump is doing what he can and he has done far more than anyone else in decades. This tax plan of his is another giant step in the right direction. It isn’t the end of the journey but it cracks the tax nut wide open.
Patriots have to enlighten Pres. Trump that the ultimate tax plan imo begins with patriots first supporting Trump to lead the states to repeal the ill-conceived 17th Amendment, and then supporting Trump to work with the states to put a stop to unconstitutional federal taxes.
Remember! Trump is unelectable.
So I’m not sure I’m reading the table correctly. I think if someone earned 50k or less from salary and 50k or less from dividends that they would pay no personal tax. This would be a godsend to small business owners.
I read that the same way you did.
The Married $50k income has 0% and the $50k dividends has a 0% rate too.
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