Trump's tax plan: Massive cuts for the 1% will usher 'era of dynastic wealth'

when you condoned others paying higher tax rates than you.

 

https://www.donaldjtrump.com/policies/tax-plan

DONALD J. TRUMP’S VISION

Reduce taxes across-the-board, especially for working and middle-income Americans who will receive a massive tax reduction.

Ensure the rich will pay their fair share, but no one will pay so much that it destroys jobs or undermines our ability to compete.

Eliminate special interest loopholes, make our business tax rate more competitive to keep jobs in America, create new opportunities and revitalize our economy.

Reduce the cost of childcare by allowing families to fully deduct the average cost of childcare from their taxes, including stay-at-home parents.

The Trump Plan will revise and update both the individual and corporate tax codes:

Individual Income Tax

Tax rates

The Trump Plan will collapse the current seven tax brackets to three brackets. The rates and breakpoints are as shown below. Low-income Americans will have an effective income tax rate of 0. The tax brackets are similar to those in the House GOP tax blueprint.

Brackets & Rates for Married-Joint filers:
Less than $75,000: 12%
More than $75,000 but less than $225,000: 25%
More than $225,000: 33%
*Brackets for single filers are ½ of these amounts

The Trump Plan will retain the existing capital gains rate structure (maximum rate of 20 percent) with tax brackets shown above. Carried interest will be taxed as ordinary income.

The 3.8 percent Obamacare tax on investment income will be repealed, as will the alternative minimum tax.

Deductions

The Trump Plan will increase the standard deduction for joint filers to $30,000, from $12,600, and the standard deduction for single filers will be $15,000. The personal exemptions will be eliminated as will the head-of-household filing status.

In addition, the Trump Plan will cap itemized deductions at $200,000 for Married-Joint filers or $100,000 for Single filers.

Death Tax

The Trump Plan will repeal the death tax, but capital gains held until death and valued over $10 million will be subject to tax to exempt small businesses and family farms. To prevent abuse, contributions of appreciated assets into a private charity established by the decedent or the decedent’s relatives will be disallowed.

Childcare

Americans will be able to take an above-the-line deduction for children under age 13 that will be capped at state average for age of child, and for eldercare for a dependent. The exclusion will not be available to taxpayers with total income over $500,000 Married-Joint /$250,000 Single, and because of the cap on the size of the benefit, working and middle class families will see the largest percentage reduction in their taxable income.

The childcare exclusion would be provided to families who use stay-at-home parents or grandparents as well as those who use paid caregivers, and would be limited to 4 children per taxpayer. The eldercare exclusion would be capped at $5,000 per year. The cap would increase each year at the rate of inflation.

The Trump Plan would offer spending rebates for childcare expenses to certain low-income taxpayers through the Earned Income Tax Credit (EITC). The rebate would be equal to 7.65 percent of remaining eligible childcare expenses, subject to a cap of half of the payroll taxes paid by the taxpayer (based on the lower-earning parent in a two-earner household).

This rebate would be available to married joint filers earning $62,400 ($31,200 for single taxpayers) or less. Limitations on costs eligible for exclusion and the number of beneficiaries would be the same as for the basic exclusion. The ceiling would increase with inflation each year.

All taxpayers would be able to establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions to a DCSA are limited to $2,000 per year from all sources, which include the account owner (parent in the case of a minor or the person establishing elder care account), immediate family members of the account owner, and the employer of the account owner. When established for children, the funds remaining in the account when the child reaches 18 can be used for education expenses, but additional contributions could not be made.

To encourage lower-income families to establish DCSAs for their children, the government will provide a 50 percent match on parental contributions of up to $1,000 per year for these households. When parents fill out their taxes they can check a box to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.

Business Tax

The Trump Plan will lower the business tax rate from 35 percent to 15 percent, and eliminate the corporate alternative minimum tax. This rate is available to all businesses, both small and large, that want to retain the profits within the business.

It will provide a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10 percent.

It eliminates most corporate tax expenditures except for the Research and Development credit.

Firms engaged in manufacturing in the US may elect to expense capital investment and lose the deductibility of corporate interest expense. An election once made can only be revoked within the first 3 years of election; if revoked, returns for prior years would need to be amended to show revised status. After 3 years, election is irrevocable.

The annual cap for the business tax credit for on-site childcare authorized by Sec. 205 of the Economic Growth and Tax Relief Reconciliation Act of 2001 would be increased to $500,000 per year (up from $150,000) and recapture period would be reduced to 5 years (down from 10 years).

Businesses that pay a portion of an employee’s childcare expenses can exclude those contributions from income. Employees who are recipients of direct employer subsidies would not be able to exclude those costs from the individual income tax and the costs of direct subsidies to employees could not be used as a cost eligible for the credit.

 

https://www.irs.com/articles/2016-federal-tax-rates-personal-exemptions-and-standard-deductions

2016 Federal Tax Rates, Personal Exemptions, and Standard Deductions
IRS Tax Brackets & Deduction Amounts for Tax Year 2016

This article gives you the tax rates and related numbers that you will need to prepare your 2016 income tax return. In general, 2016 individual tax returns are due by Monday, April 17, 2017.

2016 Income Tax Brackets

The Federal income tax has 7 brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your income level and filing status.

It’s important to understand that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular bracket is subject to that particular tax rate.
Single
Taxable Income Tax Rate
$0—$9,275 10%
$9,276—$37,650 $927.50 plus 15% of the amount over $9,275
$37,651—$91,150 $5,183.75 plus 25% of the amount over $37,650
$91,151—$190,150 $18,558.75 plus 28% of the amount over $91,150
$190,151—$ 413,350 $46,278.75 plus 33% of the amount over $190,150
$413,351—$415,050 $119,934.75 plus 35% of the amount over $413,350
$415,051 or more $120,529.75 plus 39.6% of the amount over $415,050

...

2016 Standard Deduction Amounts

There are two main types of tax deductions: the standard deduction and itemized deductions. You can claim one type of deduction on your tax return, but not both.

For example, if you claim the standard deduction, you cannot itemize deductions – and vice versa (if you itemize deductions, you cannot claim the standard deduction). You are allowed to use whichever type of deduction results in the lowest tax.

The standard deduction is subtracted from your Adjusted Gross Income (AGI), thereby reducing your taxable income. For tax year 2016, the standard deduction amounts are as follows:
Filing Status Standard Deduction
Single $6,300
Married Filing Jointly $12,600
Married Filing Separately $6,300
Head of Household $9,300
Qualifying Widow(er) $12,600

 

I thought their accountants and book keepers knew all the loop holes to stop them from paying taxes.

 

proponents of graduated tax rates are no better than thieves. They use government to steal for them.

 

So I should condone them paying lower taxes, how about we all pay a flat tax.

 

versus

Deductions

The Trump Plan will increase the standard deduction for joint filers to $30,000, from $12,600, and the standard deduction for single filers will be $15,000. The personal exemptions will be eliminated as will the head-of-household filing status.

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I love it. This will reduce my taxes considerably thanks to that massively increased standard deduction alone. Trump's tax plan is great for the working class.

- - - Updated - - -

Trump's going to eliminate loopholes and lower taxes for the working class and businesses alike.

 

republicans want to get rid of estate taxes

currently an estate under 5 million is tax free as you are only taxed over 5 million.... so that really only benefits the super rich

.

 

IF these tax cuts or tax increases work to the desired goal, great!! But these changes should also have written in that after giving the changes time to work, or not work, that if they do not work to the desired goal, then they should move back up to what they were prior. For reasons are always given as to why they are being changed. Then you keep what worked, and discard what failed. That is the rational, intelligent way, and yet they will not do this. And that is a problem with gov't, or rather politicians. IF they really wanted to help America, they sure as hell would act and legislate with much greater wisdom and common sense. But I do not think they are in DC to work for the common good. It shows. It becomes obvious. And yet we sent them back and they make careers out of being in the ruling class, as if they were royalty. They are far from being public servants. Many of them see themselves as being rulers, but of course you cannot ever admit that. But it still comes across, if you pay attention.

 

One of the main reasons I voted for Trump is that he promised people like me tax cuts. I pay far too much for what I get in return from the GOVERNMENT. And I hope he ends the federal death tax. that's an abomination

 

I think it's part of an investment strategy to encourage growth and lure foreign investment to America. They say that the tax cuts for the rich are greater than for others because the rich pay so much in taxes that there is a greater margin for cuts than for others who already pay so little in taxes that there isn't much to cut. Hence the surface disparity. But I could be wrong.

 

Trump hasn't paid taxes in 18 years. By all accounts, he's a 1%-er.

 

The government should let you pay what you WANT to pay and then take a look at what you'd get back in return.

 

Just like Bill Clinton, Bush, Jr. and Obama too.
Nothing new here, move along.

It started with the bipartisan JFK Tax Cuts and all tax cuts since. ​

​

I miss the Eisenhower Tax Code. And Ike built Freeways, not toll roads.


Moi


r > g

View attachment 46978 ​

Build The Wall, Make Ottawa Pay For It!
Across an immense, unguarded, ethereal border, Canadians, cool and unsympathetic,
regard our America with envious eyes and slowly and surely draw their plans against us.​

 

What effective income tax rate should the middle 1/5 pay?

 

You this how you've seen his tax returns or just making it up?

 

wow what an original thought, they should have used that in hillarys campaign, oh wait they did. Guess what it is as irrelevant now as it was all campaign season. If he did not pay a dime all that tells me is that the current tax system is a joke

 

OK, so how can the 1% get a tax cut then?

 

Elections are just placeboes. They give people the illusion of control by letting them put marks on paper.

How will Trump and the worthless Congress Critters pay for all of those new expensive military toys without tax revenue?

 

There are other ways of generating tax revenue.

 

DONALD J. TRUMP’S VISION
o Reduce taxes across-the-board, especially for working and middle-income Americans who will receive a massive tax reduction.
o Ensure the rich will pay their fair share, but no one will pay so much that it destroys jobs or undermines our ability to compete.
o Eliminate special interest loopholes, make our business tax rate more competitive to keep jobs in America, create new opportunities and revitalize our economy.
o Reduce the cost of childcare by allowing families to fully deduct the average cost of childcare from their taxes, including stay-at-home parents.

Read the Fact Sheet on Donald J. Trump’s Tax Policy, here.

Read Mr. Trump's Remarks at the Detroit Economic Club and the New York Economic Club.


Tax Law Changes

The Trump Plan will revise and update both the individual and corporate tax codes:

Individual Income Tax

Tax rates

The Trump Plan will collapse the current seven tax brackets to three brackets. The rates and breakpoints are as shown below. Low-income Americans will have an effective income tax rate of 0. The tax brackets are similar to those in the House GOP tax blueprint.

Brackets & Rates for Married-Joint filers:
Less than $75,000: 12%
More than $75,000 but less than $225,000: 25%
More than $225,000: 33%
*Brackets for single filers are ½ of these amounts

The Trump Plan will retain the existing capital gains rate structure (maximum rate of 20 percent) with tax brackets shown above. Carried interest will be taxed as ordinary income.

The 3.8 percent Obamacare tax on investment income will be repealed, as will the alternative minimum tax.

Deductions

The Trump Plan will increase the standard deduction for joint filers to $30,000, from $12,600, and the standard deduction for single filers will be $15,000. The personal exemptions will be eliminated as will the head-of-household filing status.

In addition, the Trump Plan will cap itemized deductions at $200,000 for Married-Joint filers or $100,000 for Single filers.

Death Tax

The Trump Plan will repeal the death tax, but capital gains held until death and valued over $10 million will be subject to tax to exempt small businesses and family farms. To prevent abuse, contributions of appreciated assets into a private charity established by the decedent or the decedent’s relatives will be disallowed.

Childcare

Americans will be able to take an above-the-line deduction for children under age 13 that will be capped at state average for age of child, and for eldercare for a dependent. The exclusion will not be available to taxpayers with total income over $500,000 Married-Joint /$250,000 Single, and because of the cap on the size of the benefit, working and middle class families will see the largest percentage reduction in their taxable income.

The childcare exclusion would be provided to families who use stay-at-home parents or grandparents as well as those who use paid caregivers, and would be limited to 4 children per taxpayer. The eldercare exclusion would be capped at $5,000 per year. The cap would increase each year at the rate of inflation.

The Trump Plan would offer spending rebates for childcare expenses to certain low-income taxpayers through the Earned Income Tax Credit (EITC). The rebate would be equal to 7.65 percent of remaining eligible childcare expenses, subject to a cap of half of the payroll taxes paid by the taxpayer (based on the lower-earning parent in a two-earner household).

This rebate would be available to married joint filers earning $62,400 ($31,200 for single taxpayers) or less. Limitations on costs eligible for exclusion and the number of beneficiaries would be the same as for the basic exclusion. The ceiling would increase with inflation each year.

All taxpayers would be able to establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions to a DCSA are limited to $2,000 per year from all sources, which include the account owner (parent in the case of a minor or the person establishing elder care account), immediate family members of the account owner, and the employer of the account owner. When established for children, the funds remaining in the account when the child reaches 18 can be used for education expenses, but additional contributions could not be made.

To encourage lower-income families to establish DCSAs for their children, the government will provide a 50 percent match on parental contributions of up to $1,000 per year for these households. When parents fill out their taxes they can check a box to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.

Business Tax

The Trump Plan will lower the business tax rate from 35 percent to 15 percent, and eliminate the corporate alternative minimum tax. This rate is available to all businesses, both small and large, that want to retain the profits within the business.

It will provide a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10 percent.

It eliminates most corporate tax expenditures except for the Research and Development credit.

Firms engaged in manufacturing in the US may elect to expense capital investment and lose the deductibility of corporate interest expense. An election once made can only be revoked within the first 3 years of election; if revoked, returns for prior years would need to be amended to show revised status. After 3 years, election is irrevocable.

The annual cap for the business tax credit for on-site childcare authorized by Sec. 205 of the Economic Growth and Tax Relief Reconciliation Act of 2001 would be increased to $500,000 per year (up from $150,000) and recapture period would be reduced to 5 years (down from 10 years).

Businesses that pay a portion of an employee’s childcare expenses can exclude those contributions from income. Employees who are recipients of direct employer subsidies would not be able to exclude those costs from the individual income tax and the costs of direct subsidies to employees could not be used as a cost eligible for the credit.


CONTRAST WITH HILLARY CLINTON
o The Trump Plan protects all low-income and middle-income Americans and lowers their taxes. As the Tax Foundation put it: “Donald Trump’s plan is a tax cut for all income groups, while Hillary Clinton’s plan is a tax increase on selected income groups”. The Tax Foundation determined that, on average, taxpayers will receive a tax cut of $1,818 under the Trump Plan, but a tax increase of $176 under the Clinton plan. [Tax Foundation, Sept. 23, 2016]
o Donald J. Trump’s tax plan will increase the economy and grow jobs by almost 2 million, while Hillary Clinton’s tax plan will shrink the economy and lose 300,000 jobs. In combination with the total economic reform agenda, the Trump economic plan will create at least 25 million jobs over the next 10 years. [Tax Foundation, Sept. 19, 2016], [Tax Foundation, Jan. 26, 2016].

https://www.donaldjtrump.com/policies/tax-plan

 

How is Chattanooga Tenn making out giving VW free land and a 30 year tax break. Think about it for a minute.

Chattanooga Chosen For $1 Billion Volkswagen Plant - Chattanoogan ...

Long List Of Sweeteners Helped Lure Volkswagen To Chattanooga ...



www.chattanoogan.com/2008/11/19/.../Long-List-Of-Sweeteners-Helped-Lure.aspx



Nov 19, 2008 - Long List Of Sweeteners Helped Lure Volkswagen To Chattanooga ... The incentives range from a 30-year tax abatement and free land to establishment ... City and county are giving the main 1,340-acre tract at the Enterprise

 

well given I pay at least a half million a year in federal and state income taxes, I should have far more say in elections than those sucking on the public teat and living off the tax dollars of others

 

If you people know this then why were so many of you b*tch*ng because he did not release his tax returns?

 

What did people actually think this coddled, soft, 1% baby can even begin to understand what it's like to be middle class?