March 22, 2018

These two charts show what's wrong with Trump's tax proposal

02 October 2017, 11:40 | Virginia Santiago

President Donald Trump called his tax reform blueprint a'middle class miracle on Wednesday

President Donald Trump called his tax reform blueprint a'middle class miracle on Wednesday

Diane Yentel, president of the National Low Income Housing Coalition, said the Republican plan would only make the mortgage interest deduction "even more regressive than it is today".

A new Tax Policy Center analysis of the Trump administration's tax framework finds that the outline released this week would reduce federal revenues by $2.4 trillion over the first decade, and by $3.2 trillion over the following decade.

Much of the benefits would fall to businesses.

New York's Democratic lawmakers are vowing to fight President Donald Trump's tax overhaul proposal, perhaps even in court. He spoke of the Americans who work at these workers at manufacturing businesses, who make products that build families, communities, and "this nation that we all love so much".

"Despite losing the deduction for state and local taxes, they end up with the same taxable income", McMahon said. Treasury Secretary Steven Mnuchin and Gary Cohn, Trump's top economic adviser, argue that the tax cut would spark economic growth exceeding 3 percent annually, well above its recent 2 percent average.

"Too many in our country are shut out of the dynamism of the U.S. economy, which has led to the justifiable feeling that the system is rigged against hardworking Americans", the nine-page plan states.

But it's unclear which income levels will be applied to each rate, making it hard to know how a typical family's tax bill may be affected.

The National Association of Realtors, a powerful real estate lobbying group, commissioned a study earlier this year finding the proposal would increase taxes on middle- and upper-class homeowners and reduce incentives for homeownership, thereby shrinking home values by about 10 percent.

While most taxpayers would benefit at least modestly, taxes would increase for others, particularly those with incomes of $150,000 to $300,000.

Hamilton surprised himself with pole lap
I didn't sleep well last night because we just didn't know if we would fix the issue. Raikkonen had qualified in second place behind Mercedes driver Lewis Hamilton .

Some won't get a break at all.

Of course, these are just averages. If it rises by less than $1,000, a lot of middle-class families will see a tax increase. The standard deduction would almost double to $12,000 for individuals and $24,000 for families, basically increasing the amount of personal income that would not be taxed. That includes about 13.5% of middle income filers, who would pay an average of $1,000 more.

In the first year, the average decline in taxes paid would be $1,600, raising after-tax incomes by 2.1 percent. The Senate Budget Committee is expected to approve soon a budget resolution that will enable tax legislation to raise borrowing by $1.5trn over ten years.

And now it's time for the main event: tax reform.

Trump's speech comes after the Republican tax framework was released Wednesday, which was put together by administration officials and key congressional Republicans.

As a result, the Tax Policy Center analysis made a series of assumptions about the impact of the provisions that have not been spelled out. "They continue to lie to the people by promising economic benefits from tax cuts for the rich, after every attempt to accomplish this sort of trickle down magic has failed".

State Comptroller Tom DiNapoli, whose office did an in-depth analysis of the federal tax proposals in July, said there are so many uncertainties as the process goes forward in Washington, it's very hard to pinpoint the exact effects on all New Yorkers.

"It will be rocket fuel for our economy", Trump said Friday.

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