Published: Fri, April 28, 2017
Business | By Max Garcia

RIAs support Trump tax cuts for businesses

Click through to read advisers' reactions to the proposed tax plan.

"I think this president ought to be commended for standing on the soap box and saying, 'I don't accept that we're going to have mediocre growth, '" Witkoff said, adding that the president had "too much money to really care about benefiting himself".

"President Trump's tax reform plan still lacks important details but as it stands, the plan appears it would add significantly to the debt", the CRFP said.

The whole idea of democracy is that We the People govern ourselves, so we're the ones who decide how to allocate the resources of our economy to make our lives better.

[T] he plan would increase the standard deduction from $12,600 to $24,000 ($12,000 if single), and eliminate personal exemptions. But that's not double.

Average Americans may curb their philanthropic giving if President Donald J. Trump's proposed doubling of the standard deduction comes to fruition.

"The impact on Joe Taxpayer is unknown", said Marc Gerson, vice chair of the tax department of law firm Miller & Chevalier in Washington. It would also slash the corporate rate from 35 percent all the way to 15 percent, a boon to most companies even though many don't pay the full tax now.

Without more details, however, Mulvaney said it is impossible to assign a score to the proposal. According to the order, this includes: "Promoting the preservation of farms and agribusinesses as they are passed from one generation to the next, including changes to the estate tax and the tax valuation of family or cooperatively held businesses".

An early analysis by the nonpartisan Committee for a Responsible Federal Budget estimates federal revenue would probably drop $5.5 trillion over a decade under the Trump plan, shy of Reagan's record-breaker. The new proposal is likely to lose less revenue because the top individual rates are higher and the standard deduction is lower, but will nearly certainly be scored to increase the deficit substantially. "New Jersey taxpayers would lose under that plan".

On Wednesday, President Donald Trump released a summary of the tax reform bill he hopes to introduce, with his administration calling it "the biggest tax cut and the largest tax reform in the history of our country". He is also proposing dramatic cuts to personal income tax cuts that will especially benefit billionaires like him.

Individual tax rates would be reduced to three brackets: 10%, 25% and 35%. It has evolved over the years and now impacts about 5 million households, a lot of them making between $200,000 and $1 million a year. Without it, he would have paid just $5.5 million, according to a leaked copy of that year's return.

There are several honest ways out of the resulting budget hole: end or limit tax breaks such as the mortgage-interest deduction; raise the rates of other taxes; cut spending; or some combination.

For individuals and families, Trump's plan more closely resembles a blueprint released by House Republicans previous year.

These are the 1 percenters, people like Trump who make millions a year and are worth even more.

The federal estate tax is widely misunderstood. As a result, eliminating the inheritance tax could possibly produce an enormous windfall for his heirs.

Because taxes on pass-through income are paid at the individual level at individual rates, the top rate for such income today is generally 39.6 percent.

The non-partisan Committee for a Responsible Federal Budget estimated that the Trump tax plan would cost the US somewhere in the $5.5 trillion range over ten years, and the proposed cut in the corporate tax rate to 15 percent could eat up $2 trillion of that figure all by itself.

Slashing taxes on income and business was a key part of Trump's election platform.

Aside from most large companies, many partnerships and small businesses would benefit because they're structured as pass-throughs, which derives from the fact that they pass on their profits to their owners.

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