Corporate tax rate to be lowered to 20% from 35%.
WE SEE NO DOWNSIDE ON LOWERING THE CORPORATE TAX RATE!
Pass through corporations taxed at 25% (instead of top tax rate small businesses pay!)
WE’LL TAKE IT. TONS OF THESE CORPORATIONS. BUT IS THERE REALLY A BIG BENEFIT?
Tax brackets from 7 to 3. Top tax rate lowered to 35% from 39%. The other brackets will be 12% and 25%. This means the bottom tax bracket goes from 10% to 12% but the standard deduction is doubled to $24,000 for married and $12,000 for single filers.
WILL NEED TO SEE THE FINE PRINT ON WHAT THE HIGHER BRACKETS HAVE TO GIVE BACK AND WHAT THE LOWER BRACKET GETS.
Elimination of the state and local tax deduction. States like NY and Cal will not be happy about this.
SOMEONE IS GOING TO BE PISSED OFF!
Increase the child tax credit.
Repeal the alternative minimum tax.
LONG TIME COMING!
Eliminate most itemized deductions but retains home mortgage and charitable deductions.
LET’S SEE WHAT “MOST” MEANS!
Repeal the death tax.
YEAH…NEVER UNDERSTOOD “RE-TAXING” EARNINGS THAT WERE ALREADY TAXED!
Deduction of net interest expense incurred by C Corporations will be partially limited.
WOULD LIKE TO SEE WHAT THEY MEAN BY “PARTIALLY!”
End the incentive to keep foreign profits offshore by exempting them when repatriated back to the U.S.
YEAH! THE RIGHT TYPE OF INCENTIVE!
Allow businesses to write off the cost of new investments.
GOOD ON THIS!
WE SUSPECT THE LEFT IS GOING TO HAVE FITS AS THEY HATE “THE PRIVILEGED FEW” KEEPING MORE OF THEIR MONEY. WE ALSO SUSPECT THE MEDIA’S VEINS WILL BE POPPING OUT OF THEIR HEADS AS YOU WILL HEAR THE WORDS “TAX CUTS FOR THE RICH” 1400X EACH DAY.
There’s a difference between tax cuts and tax reform. Tax cuts simply lower the rates where as tax reform changes the tax system. The government can’t really afford to cut taxes by much because we are so heavily in debt but if the tax structure can be changed so that 90%+ of people don’t need professional help that will be a good thing. It will put a lot of tax preparation business out of business and that’s a good thing. Really! Tax preparation services are pure non-value added overhead. What creates economic activity (I’m talking to you Paul Krugman) is adding value. Take one thing and make it worth more. Just passing around a bunch of paper or files or counting beans doesn’t actually accomplish anything. “Inefficiency is the #1 employer, bureaucracy #2” -PJL
Comments are closed.