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Trump administration unveils tax reform proposal

Trump administration unveils tax reform proposal

Mnuchin said the plan "will pay for itself with growth", reduced deductions and "closing loopholes".

"We have a once-in-a-generation opportunity to do something really big", said Gary Cohn, director of President Trump's National Economic Council. Mnuchin described the AMT as an unnecessary complication ti the tax code.

Though Trump refuses to release any recent tax returns, information from his 2005 return indicates that he paid almost $37 million in federal income taxes that year. "This is about what's good for the American people".

But these problems can not be solved by simply lowering all businesses taxes to 15% while cutting taxes for individuals.

"At the highest level we're a big supporter of tax reform", Boeing Chief Financial Officer Greg Smith told analysts and journalists on a call Wednesday.

It would double the standard deduction, but take away the alternative minimum tax and the Obamacare tax.

Currently, the standard deduction is $6,350 and $12,700 for a married couple filing jointly. Five dollars and some change just won't help or make much of a difference or help at all at the end of the year when tax breaks come along. The plan says simply, "Eliminate tax breaks for special interests". But nearly all others would be jettisoned.

This includes the tax deduction people can claim for the state and local taxes they pay each calendar year. Filers in other states - including California, New York Connecticut and New Jersey - had higher average deduction amounts. Jerry Brown (D) said his state would have to cut costs to avoid a $2 billion deficit this year. "It's the state's independent decision as to do what they want to tax". The top tax rate for many small business owners would be reduced from 39.6 percent to 15 percent.

A copy of Trump's tax return from 2005 suggests that a tax cut similar to the one Trump is proposing could have lowered his tax obligation by potentially tens of millions of dollars in a single year.

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President Trump's plan to overhaul the federal tax code threatens to fall disproportionately on residents of liberal-leaning states, a short-term boost for state governments that could turn into a long-term drag.

Mr Mnuchin said: "The president has no intention". He said the White House wanted to move "as fast as we can" to get Trump's tax plan approved. Bob Casey, a Democrat from Pennsylvania, said in a statement. Trump officials essentially argue that benefits from the tax cuts will trickle down from higher profits for companies into stronger pay raises for workers and greater consumer spending. The Trump administration has ruffled GOP feathers on Capitol Hill by getting in the way of legislators' efforts to fix the tax system. "So I hope [Democrats] don't stand in the way". According to ThinkProgress, it will be those who live in "cities and coastal areas" - as in, people who spend more money on child care because they can afford to do so.

"We will be back to you with very firm details", Cohn said.

Ahead of the announcement, some Democrats were skeptical.

Grover Norquist, president of Americans for Tax Reform, praised Trump's proposal. True reform requires making the tough choices about what works and what doesn't, not simply offering tax giveaways for all. "And if I just lost my deductions, how do I minimize taxes? We'll be attacked from the right", Cohn said.

The NYT cites a Tax Policy Center estimate which says the similar tax plan Trump released during the campaign would contribute "about $7 trillion in additional debt over the first 10 years and almost $21 trillion by 2036".

Corporate tax in the United Kingdom was cut to 19% this month, and the government plans to bring it down to 17% by 2020. He did say the administration would work with House Republicans to make the new tax more acceptable.

Treasury Secretary Steven Mnuchin promised in November that the upper class wouldn't receive a tax cut.

Last year, more than 43 million families claimed the deduction, saving them almost $70 billion.

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