A new 12k standard deduction, 24k for married people. Small business tax rate of 25%. Meh. Hardly wonderful. Large businesses get a 20% tax rate.
But where is the mortgage interest deduction? And the Property tax deduction?
For a modest home, that can add up to $10,000.
The horrible AMT tax and estate tax would go. Thats probably the best part of the plan.
What we have done, however, is make owning a house much more painful. It’s probably a wash though.
Middle class would face a 25% tax rate, a RAISE but again with the larger deduction its a wash.
Equipment write offs would be immediate not over time. This makes sense.
Overall, it’s not quite aggressive enough. We need a Minimum Tax for large businesses who have sales over 50M. Say 5%. No more should Apple and GE get away with paying zero taxes. That would be a big change, a real change which imposes some real justice.
Trump briefly mentioned a 4th tax bracket for the super rich. That’s probably unlikely to make it in.
Overall, well progress of any kind is good. But its DOUBTFUL this is a big tax cut for the middle class, only for the LOWER middle class. The Upper middle class is either a wash or getting the shaft. This is not the big cuts that would make a big revolution in America.
A 25% tax on small business isn’t that great. 18% would be more realistic.
As far as onboarding offshore cash made from offshoring our factories, Trump wants to give them a pass. FK that. They should get double taxed. Another wrong direction.