Trump proposes tax cut for owner-operator businesses

House Republicans are calling for a border adjustment tax to be incorporated in the plan.

Under current law, pass-through owners have little income-tax incentive to distinguish between business income and compensation, although some have tried to minimize compensation in order to lower Medicare and Social Security taxes.

"If people don't think capital is now global, then they're kidding themselves and what the U.S. is doing will encourage investment and job creation in the US".

Under the best assumptions, someone earning $50,000 a year could expect savings of perhaps $350, which Trump hopes would be enough to make them ignore the fact that someone earning $5,000,000 a year would see over $400,000 in gains. "We are trying to stimulate business investment".

The centrepiece of the Trump plan revealed yesterday, was consistent with earlier leaks that the President planned a cut in corporate taxes to 15%, as well as personal tax cuts and other measures.

The proposals were expected to be unveiled at the White House at 1:30 ET (1730 GMT) on Wednesday by Treasury Secretary Steve Mnuchin and Trump economic adviser Gary Cohn.

Trump, however, offered no immediate plan to pay for the tax cuts, which some independent economic analysts say that over next decade could add $2 trillion to the almost $20 trillion in long-term debt the US has already amassed. Mr. Verleger has worked with the Canadian Association of Petroleum Producers to assess the impact of possible border levies, which would force oil exporters to accept significant discounts for their crude in the USA market.

But there is no evidence showing the results of tax breaks are consistent, in fact, recent American history shows tax breaks don't always fit the economic growth agenda.

Mnuchin said Trump's plan would encourage corporations to return the money to the United States and invest it in plants and equipment.

Some analysts said investors were aware of the long road ahead before any tax bill is passed.

"This isn't going to be easy".

"We will be attacked from the left and we will be attacked from the right". But one thing is certain. "I would never, ever bet against this president".

But Mark Hamrick, a senior economic analyst for Bankrate.com, voiced skepticism about the plan's eventual fate in Congress.

"If I decide to run for office, I'll produce my tax returns, absolutely", he told an Irish television station in 2014. "Instead of focusing on hard-working families as he promised, President Trump's tax outline is a wish list for billionaires". Mnuchin and Cohn seem to think that Americans will cheerfully hand over trillions to the wealthy, or even pay more themselves, in exchange for having a shorter form.

More lower-income Americans would pay no tax at all, and there would be relief - still undefined - for families with child care expenses.

As Mr. Mnuchin said, "It's not the federal government's job to be subsidizing the states".

One example of the absent specifics: The plan calls for reducing the current seven individual tax rates to just three: 10 percent, 25 percent and 35 percent, but it doesn't include the income thresholds associated with those rates.

The Trump proposal would double the standard deduction for married couples to more than $24,000, while keeping deductions for charitable giving and mortgage interest payments.

World stock indexes were mixed Thursday as investors assessed the scant details of President Donald Trump's USA tax overhaul.

Trump often attacked his predecessor, former President Barack Obama, for massive annual deficit spending that added to the national debt, something his tax plan might do as well.

On Tuesday, the official scorekeeper for Congress dealt the argument - and Trump's plan - another blow.

House Speaker Paul Ryan accepted the proposal.

"We've been briefed on what they're going to do and it's basically along exactly the same lines that we want to go, so we see this as progress being made", Ryan said. Some econometric models anticipate that an economic growth rate of 3 percent would pay for the proposed reduction of the corporate income tax from 35 percent to 15 percent through the revenue collected on higher economic activity.

Retailers and other big importers have railed against the proposed tax, saying it would lead to higher prices for consumer goods.

Recommended News

  • Mattis: 'No doubt' Syrian regime has chemical weapons

    But doubts began to emerge soon afterwards that not all such armaments or production facilities were declared and destroyed. Under the guise of Russian leadership, the entire stockpile was said to have been destroyed.
    Kelly for Alleged Affair With his Wife

    Kelly for Alleged Affair With his Wife

    Kenny claims in his lawsuit that his wife convinced him to quit his job and move to Atlanta so that he could further his career. The years-long affair allegedly caused an alienation of affection, and Bryant is seeking compensatory and punitive damages.
    New DHS Office Gives 'VOICE' to Victims of Illegal Immigrant Crimes

    New DHS Office Gives 'VOICE' to Victims of Illegal Immigrant Crimes

    The website also provides the toll-free VOICE Hotline for victims to call to have their questions answered - 1-866-DHS-2-ICE. On Wednesday, advocates for immigrants signaled that they might file a lawsuit to block the victim office as well.
  • BUSINESS REPORT: Could the Trump corporate tax cut be bad for Canada?

    The White House's presentation will be "pretty broad in the principles", said Marc Short, Trump's director of legislative affairs. The White House also said a "one-time tax " would be imposed on "trillions of dollars held overseas" by corporations.
    Ander Herrera sends message to Chelsea fans about Eden Hazard

    Ander Herrera sends message to Chelsea fans about Eden Hazard

    The 26-year-old missed out on the PFA player of the year award this season after N'Golo Kante won the prize ahead of the Belgian. The Belgium captain has scored over 15 goals for Chelsea in all competitions this season, helping them to the top of the table.
    NYC, Metropolitan Museum weigh mandatory admission fees

    NYC, Metropolitan Museum weigh mandatory admission fees

    Other museums with pay-as-you-wish ticketing include the American Museum of Natural History, the Brooklyn Museum, MoMA PS1, and the Museum of the City of NY .
  • Predators beat Blues 4-3 in Game 1 of second-round series

    Louis on Friday night. "At that point, you're nearly thinking it might get to overtime and just continue to do the right things". The puck banked off Anaheim defenseman Josh Manson's skate and pinballed underneath John Gibson , who stopped 27 shots.

    US Congress may seek one-week funding extension to avert shutdown

    Insurers are also desperate to get some clarity on the issue and make sure the administration continues making the payments. Holocaust Memorial Museum's "Days of Remembrance" ceremony in the Capitol Rotunda in Washington , U.S, April 25, 2017.
    Leading GOP moderate opposes plan to move House health bill

    Leading GOP moderate opposes plan to move House health bill

    Cost estimates top $20 billion, and even Republicans dismiss Trump's oft-repeated promise that Mexico will end up paying for it. Republicans in border states are particularly skeptical and none have embraced Trump's promise of a physical wall.
  • Trump tells Canada, Mexico he won't terminate NAFTA

    Trump tells Canada, Mexico he won't terminate NAFTA

    The loonie and the peso weakened sharply late Wednesday after report that the USA was considering pulling out of NAFTA. If NAFTA is renegotiated, supply chains in sectors such as clothing and autos could be thrown into disarray.

    Valley lawmakers hope to avoid government shutdown

    That signature campaign proposal is seen by most Democrats and many Republicans as an ineffective way of securing USA borders. The government could save $10 billion by revoking the payments, Kaiser said. "We are down to the last final things".
    Disney announces official release date for 'Star Wars: Episode IX'

    Disney announces official release date for 'Star Wars: Episode IX'

    Initially scheduled for a 2019 release, the fifth Indiana Jones film has been pushed back to a later date on 10 July 2020. The Force Awakens , and Rogue One were both huge box office successes in the Christmas release slots.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.