Trump Tax Reform Plan Reduces Seven Tax Brackets to Three

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This is what is needed to get the American economy moving again. That’s why you can be sure that the Democrats and establishment Republicans will do everything they can to block it.

“Trump Tax Reform Plan Reduces Seven Tax Brackets to Three,” by Ali Meyer, Washington Free Beacon, April 26, 2017:

President Donald Trump’s tax reform proposal will simplify the tax code and encourage economic growth by reducing the number of tax brackets and eliminating certain taxes, according to White House chief economic adviser Gary Cohn.

Speaking to reporters at Wednesday’s White House press briefing, Cohn said Trump is promoting the most significant tax reform legislation since 1986. The tax reform bill focuses on job creation, economic growth, and helping low- and middle-income families who have been left behind by the economy, Cohn said.

“We’re going to cut taxes and simplify the tax code by taking the current seven tax brackets we have today and reducing them to only three brackets—a 10 percent bracket, a 25 percent bracket, and a 35 percent bracket,” Cohn said.

The plan proposes eliminating the alternative minimum tax and death taxes.

“The [alternative minimum tax] creates significant complication and burdens which require taxpayers to do their taxes twice to see which is higher,” Cohn said. “That makes no sense, and we should have one simple tax code.”

“We are going to repeal the death tax,” he said. “The threat of being hit by the death tax leaves small business owners and farmers in this country to waste countless hours and resources on complicated estate planning to make sure their children aren’t hit with a huge tax when they die.”

Cohn added that the tax plan would double the standard deduction so married couples will not pay any taxes on the first $24,000 of income, creating in essence a zero percent tax rate.

“The largest standard deduction also leads to simplification because far fewer taxpayers will need to itemize, which means their tax form can go back, yes, to that one simple page,” he added.

The plan would attempt to drive economic growth through capital investment by returning the top capital gains and dividends rate to 20 percent. The plan also would repeal the 3.8 percent Obamacare tax on dividends and capital gains, which Cohn said has been a direct hit on investment income and small businesses….

  • Tumbleweed

    The tax brackets should have been 10, 20 and 28 percent!

    • Fern

      How about a flat tax, 15% across the board. Welfare mooches to work in fields picking crops.

  • Michael Copeland

    There is no inheritance tax in Canada.

  • JacksonPearson

    There should have never been a death tax. It’s an insult to whoever person that work hard all their lives, die and have the government stick their dirty fingers into their estate to steal unearned monies.

    • Ron Cole

      See Karl Marx.

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    • movingwaters

      The death tax is hugely popular with people who did not come from a family farm or family business because they don’t witness the unfairness of it in their personal lives. Many, if not most Americans would rather go after the money of their neighbor who worked hard to build something than the uber rich who are able to avoid most taxes. I do hope Trump is able to bring about the demise of the death tax.

  • Disruptive Element

    Waiting to hear how the brackets fall for the taxable percentage. I ran my numbers and could end up with more taxation depending where the 25% bracket begins. The accountants are not laboring in the backrooms for nothing -they are there to razzle dazzle us into excitement only to find out once you run the numbers you are not ahead.

  • Mahou Shoujo

    Good start, now work on more as opportunities present themselves.

    • Fern

      lol
      good advice.

  • Chris Wolf

    Is this the art of the deal, convincing us we’re ecstatic about seven brackets being reduced to three?
    That means either we keep our same rate or we pay more.
    And we’re losing how many deductions?

    • Fern

      Nearly everything in my line of work is a deduction. I’m lucky in that regard, but I have to hire an accountant year round to stay on top of it.

  • Chris Wolf

    I hope this proposal is like the music of Wagner, better than it sounds.

  • Drew the Infidel

    These guys that Trump has assembled to be his Cabinet and advisers are business professionals who know their areas of expertise far beyond that of some broke schmuck or Congressman who could not buy a sick whore a drink. They are not the plutocrats and oligarchs their automatic critics seek to portray them as being The math does not lie.

    • Brian Teed

      Well said.

  • Tatiana Covington

    Why not just go back to tithing? One simple rate on everything. Add it all up, move the decimal one space left. Job done.

  • Merchantseamen

    They keep us ignorant and stupid about taxes they can do what they want. I say flat tax and the congress critters along with all the state and local buffoons learn how to spend. Lobbying should be a capital offense. That stops a lot of the hanky panky dead in its tracks.

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