President Donald Trump today outlined a massive tax-cut plan which would affect businesses – as well as the general public – via a proposal for businesses to follow a seemingly uniform 15 percent tax rate, while individuals would move to just three tax brackets set at 10, 25 or 35 percent.
For businesses, the plan additionally would not tax overseas earnings, but would strive to encourage American firms to keep their headquarters, here. In the same vein, a one-time tax cut would be aimed at enticing businesses that have monies overseas to repatriate those funds.
Among a host of other, proposed changes for individuals, the standard deduction would effectively be doubled – with basically no taxation on the first $24,000 of a couple’s income – and both the estate tax and the alternative minimum tax would be eliminated. In the same breath, a majority of deductions would be eliminated (such as those people claim for state and local taxes paid each year), but those for mortgage interest and philanthropic giving would remain.
At press-time, the tax plan is being debated in myriad ways, with perhaps recurring themes focusing on its possible effect on tax revenues and the federal budget, versus promoting economic growth, and whether or not the tax cut “wrongly favors” corporations and affluent individuals.Related Articles: