The Trump Income Tax Plan has only three tax rates (20%, 25% and 35%) - no details of where the tax breakpoints are. The Alternative Minimum Tax, the Estate Taxes, and the ObamaCare surcharge (3.8%) are eliminate - all 3 apply to the rich (e.g incomes over for the AMT and estates over and incomes over fro the ObamaCare surcharge). Below is the summary of Trump Tax Plan released to the public:
Outside of this page, there is also an increased tax deduction of $12,00 for singles and 24% for married-joint filers. So in effect there is a no tax on those couples making less than $24,000 a year. That is an unlivable income - they will need it. And Trump is mentioning that in selling this plan in saying he is cutting taxes on all people. That is not true. Let me explain.
Below is a useful diagram that shows what would have happened under the Trump Tax Plan that he proposed during the campaign which also had only 3 tax rates (12%, 25%, 33%).
If the tax rate break points (married-joint filers) are the same as before ($75K and $225K), we see that
the majority of working Americans (annual income more than $24K but less than $75K) will see a tax rate increase from 15% to 20%. This points out the lie that his tax plans cuts taxes on everyone.
And the richest (annual incomes over $415,050) will see a tax rate drop from 39.6% down to 35%. The Trump plan also offers the ability to for high income earners to declared themselves corporations and their income be said to be long-term capital gains and be taxed at 15% (instead of 35%). Most will make that move.
I don’t think this tax plan will stand even through the House. But it is working in the wrong direction. Do not be duped. A much better deal for ordinary Americans is needed.
Also the Trump Budget is cruel (ending most social programs (more on this later), scaling back cancer and other health research), irrational (assuming a ) and has a major .