Trump’s Tax Plan

Earlier this month at the Enrolled Actuaries meeting the first general session included gossip about what the new president’s plan for tax rates would be:

  • Individual tax rates at 12%, 25% and 33%
  • Corporate tax rates from 35% to 15% with the elimination of most corporate deductions

Earlier today a plan came out:

The corporate rate proposal maintained at the 15% level with individual rates rounded to the nearest 5%. No clue as to whether this will bring in more tax money (or keep me in a job) until that ‘eliminate tax breaks for special interests’ line fleshes out a definition of who is a special interest (and whether those saving for retirement count).

 

 

20 responses to this post.

  1. Posted by dentss dunnigan on April 26, 2017 at 6:03 pm

    This has a snowballs chance in hell of passing …”Eliminate Itemized Deductions Except Mortgage Interest and Charitable Contributions” ..doing away with property tax deduction in this state would crash housing prices plus depending on what bracket you’re in it’s like your property taxes just went up 12% to 35% …

    Reply

  2. Posted by Anonymous on April 26, 2017 at 6:47 pm

    It’s a great plan for the rich because they don’t itemize and their standard deduction will double.

    Reply

  3. Posted by Anonymous on April 26, 2017 at 6:51 pm

    Oh and we’ll pay for this through the savings on repealing the ACA and anemic economic growth – #growthefeddeficit !

    Reply

  4. Posted by Anonymous on April 26, 2017 at 7:37 pm

    Clearly a Plan that will ANNUALLY save Trump 10’s of $ Millions…….with:

    (1) Corp Rare dropping from 35% to 15%, and
    (2) Elimination of the AMT

    What a putz !

    Reply

    • Posted by George on April 26, 2017 at 10:32 pm

      AMT does not address sophisticated modern tax-avoidance techniques, such as Larry Ellison, who is worth $50 billion, getting a $1 salary and borrowing against the value of his appreciated stock, or companies such as Apple directing their global profits to tax-haven subsidiaries,” Shaviro added.

      http://www.businessinsider.com/what-is-the-alternative-minimum-tax-2017-3

      Reply

      • Posted by Anonymous on April 26, 2017 at 10:44 pm

        The released 2005 taxes of Pres. Trump showed ~$150 Million income, $38 Million in taxes … of which all but $5 Million was from the AMT.

        Trump is looking out for #1 >>>>>> HIMSELF <<<<<< … by eliminating the AMT AS WELL AS dropping the Corp. tax rate on his business's profits from 35% to 15%.

        Reply

  5. Posted by Eric on April 26, 2017 at 8:11 pm

    The elimination of the property tax deduction, on the federal income tax return,spells the “death knell” not only for the finances for the State of New Jersey, but also for the finances for California and New York as well.
    I wish I had sold my house, long ago, but my wife needs her “friends” nearby. These so called “friends” are costing me a whole lot of money. I could save money by renting her friends.
    Who would buy a house in New Jersey? Perhaps the same people who re-elected someone….
    Eric

    Reply

    • Posted by PS Drone on April 26, 2017 at 9:48 pm

      Your question is the same one I ask myself every time I look on Zillow (with wishful thinking that my house was included in those for sale). What kind of economically deranged individual would actually move into New Jersey? All I see are people attempting to move out. Easier said than done.

      Reply

      • Posted by Anonymous on April 27, 2017 at 4:41 am

        Well it does stand to reason that our politicians will see the extra burden being placed on NJ homeowners and therefor property taxes will reduces as such …..right ?

        Reply

    • Posted by George on April 26, 2017 at 10:29 pm

      So if you rent, the entity you rent from can deduct mortgage and interest, but if you borrow to buy the same property you can’t deduct mortgage and interest? I thought alternative minimum tax capped the mortgage and other deductions.

      Amt also capped tax loss carry forwards, and reduced corruption as bribing officials to get tax changes was pointless because of the AMT.

      What about interest on state and local debt? Still triple tax free?

      Reply

    • Posted by Anonymous on April 26, 2017 at 10:34 pm

      Proposition 13 has kept Property Taxes in CA very LOW …. if you’re a long-term owner.

      Reply

  6. Posted by friendofTR on April 27, 2017 at 12:28 am

    Love the Trump. Got rid of my tax burden pension paying house last year. Too late for you suckers.

    Reply

  7. Posted by Anonymous on April 29, 2017 at 12:28 pm

    Very bad for widows & single senior citizens who saved their whole lives. single seniors should be taxed at same level as couples.

    Reply

    • Posted by Anonymous on April 29, 2017 at 12:40 pm

      Far bigger hit for NJ (and a few other “blue states) with high income and property taxes.

      Especially if one partner in an elderly couple dies, property taxes don’t go down, and income taxes (switching to filing “single”, and with the 1/2 size “standard deduction”) will go up

      Reply

      • Posted by S Moderation Douglas on May 1, 2017 at 1:18 am

        And you lose your partners Social Security. Two can live almost as cheaply as one. On the other hand, my 86 year old Mother in law hasn’t paid income tax in years.

        Reply

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