ibusinesslines.com March 19, 2018

Treasury chief cites 'largest tax reform' ever

27 April 2017, 04:02 | Erica Roy

Treasury chief cites 'largest tax reform' ever

US Treasury Secretary Steven Mnuchin was joined by economic adviser Gary Cohn as he spoke about President Trump’s tax plan in the White House briefing room

Key to the president's plan is to cut the corporate tax rate from 35 percent to 15 percent.

House Minority Leader Nancy Pelosi (D-Calif.) predictably described the plan as a "wish list for billionaires", in a statement.

"We will be attacked from the left and we will be attacked from the right", said Trump's chief economic adviser, Gary Cohn. Share prices were mostly lower in Asia following U.S. President Donald Trump's proposal for tax cuts, .

Investors were underwhelmed by the tax plan announcement. "If you believe in magic, unicorns or Batman, this plan is for you".

Many people, particularly wealthy Americans, could set up companies and reclassify their paychecks as "business income" and have it taxed at 15%, experts say. Ron Wyden of OR, the top Democrat on the Senate Finance Committee.

"There were no specifics in terms of funding for the tax cuts".

Trump's tax plan calls for significant increase in the standard-deduction citizens can take while filing taxes.

"I'm extraordinarily skeptical that in the end this is good public policy" Miller said.

"We have a rigged economy created to benefit the wealthiest Americans and large corporations", Sanders tweeted.

Trump's plan resembles aspects of the tax ideas he campaigned on a year ago. "The government must continue to prosecute tax reform".

"I'm glad the president showed the courage to release his tax proposal". Economic growth has been stuck at about 2% a year since the recession ended in 2009. "It won't create jobs, increase middle class incomes or grow our economy".

"It's not the federal government's job to be subsidizing the states", Mnuchin said. Mnuchin described the AMT as an unnecessary complication ti the tax code. The National Taxpayers Union estimates that Americans spend just under 7 billion hours a year at a cost of more than $262 billion on compliance and record-keeping expenses.

The new tax proposal proposes to bring down the corporate tax from the current 35 per cent to 15 per cent, significantly lower individual tax rates, and eliminate several tax rates like the death tax. On the campaign trail in August previous year, Trump proposed brackets of 12 percent, 15 percent, and 33 percent.

- Reducing the number of tax brackets for individual filers from seven to three, with levels of 10%, 25% and 35%; Aides said they want to simplify the tax code by eliminating other deductions except for ones related to mortgage interest payments and charity contributions.

Dr Oliver also said that the move in the United States to lower tax rates may lead to a global push for tax cuts, since the superpower generally sets the direction on tax cuts and other economic initiatives.

A proposal to eliminate the estate tax should also be scuttled. There is also talk of a child care credit that would be structured to benefit lower-income families.

The plan would also reduce investment and estate taxes aimed at the wealthy.

Those owners are sole proprietors, partners or shareholders in what are called S corporations, or pass-through entities, which under the tax laws are meant to be small or mid-sized companies.

Cutting the corporate income tax rate is long overdue. It is perhaps the most complicated and uncompetitive business rate in the world. Japan's Nikkei dipped 0.1 percent. In the fifth position is Brazil (17.0 percent).

Who'd benefit from the corporate rate cut? USA shares were poised to open slightly higher. "More and more companies incorporate as partnerships or so-called S corporations that allow them to pay taxes at lower individual rates".

"Under the Trump plan, we will have a massive tax cut for businesses and massive tax reform and simplification", US Treasury Secretary Steven Mnuchin announced from the White House. So the tax savings will be substantial for most companies. "It's hard for taxpayers to determine where they'll come out".

"I'm a big believer in using honey rather than vinegar, and incentives are much better. I think the American population has plenty of information".

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