Yes, you read that right, ONE PAGE!!!
Saying the one-page statement of “principles” for tax reform they provided to reporters ran short on details would be an overstatement to say the least.
They did insist on three major perks for the wealthy.
First they want a repeal on the 3.8 percent capital gains tax rate on stocks, bonds and real estate investments. It's got to go because it was enacted by President Obama during the implementation of the Affordable Care Act on individuals making at least $200,000 a year. A full 90 percent of this tax break would accrue to households making at least $700,000 a year, which would receive an average tax cut of $25,000 a year, according to the nonpartisan Tax Policy Center.
Second they want the elimination of the inheritance taxes for multi-millionaire heirs and heiresses. This inheritance tax only applies to millionaires who will at least $5.49 million to their heirs ($11 million for couples) to qualify for the tax. Heirs and heiresses pay an average rate of 16.6 percent on these inheritances, according to the Center on Budget and Policy Priorities, generating about $275 billion for the government over 10 years.
Third and finally they want the tax rate on the largest corporations brought down to less than half of what it is now. This cut would disproportionately favor the wealthy, because corporate profits flow to the owners of corporate stocks, who tend to be richer. Households in the top 1 percent receive an average of 36 percent of their income from capital gains (stocks, bonds and other financial investments), according to the Congressional Budget Office, while those in the lowest 20 percent receive an average of about 5 percent of their income this way.
The Trump team also said they want to “simplify” the number of tax brackets from seven -- 10%, 15%, 25%, 28%, 33%, 35% or 39.6%. -- to three -- 15% 20% & 35% -- reducing that top rate of 39.6 percent to 35 percent.
But what the Trump team did not specify was what income levels would apply to the new brackets!!!
The 15 percent corporate tax rate would also apply to so-called “pass-through” corporations which include hedge funds, law firms, or vehicles for wealthy people to collect specialty income like book royalties.
Other perks for the rich include protecting deductions for mortgage interest, delivering larger benefits to people who buy bigger houses, eliminating the Alternative Minimum Tax and doubling the standard deduction which would exclude more household income from taxation.
The administration did not offer a legislative timeline for its tax agenda saying only that other details of the tax plan will be hashed out in negotiations with Congress.
The Trump’s advisers claimed that economic growth of 3 percent would pay for the trillions of dollars in proposed tax cuts.
The theory that lower taxes will spur growth in the economy so that the tax base will grow fast enough to make up for the shortfall from lowering tax rates is an idea that's been around since the Reagan administration cut taxes in 1981 but there is little to no evidence that future growth makes up for the revenues lost when tax rates go down.
And yet again we have another false promise by the con-man in chief to try to legitimize the horrible failure that is his first 100 days.
Here, for your viewing pleasure, is the ONE PAGE...
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