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Trump Tax Plan

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Trump's tax bracket is going to go from near 40% to 15% under the plan I saw. That is about a 60% reduction in his taxes.

 

VOR, the brackets I saw showed a drop from 39.5% to 35% for the wealthy.

 

You are putting the estate tax drop to 15% in there which isn't true except for those receiving a windfall from the death of someone they are the beneficiary of.

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Trump's tax bracket is going to go from near 40% to 15% under the plan I saw. That is about a 60% reduction in his taxes.
How?
  • Author
VOR, the brackets I saw showed a drop from 39.5% to 35% for the wealthy.

 

You are putting the estate tax drop to 15% in there which isn't true except for those receiving a windfall from the death of someone they are the beneficiary of.

 

How?

 

Trump will be able to position his business as a pass through which will drop him down to 15%.

Trump will be able to position his business as a pass through which will drop him down to 15%.
The info you are posting is really confusing. The proposed brackets are 33%, 25%, 12%. The corporate tax rate would drop from 35% to 15%.

 

So how is Trumps personal tax rate going to drop from 40% to 15%. His corporations tax rate will drop to 15% but that's from a current rate of 35%.

  • Author
The info you are posting is really confusing. The proposed brackets are 33%, 25%, 12%. The corporate tax rate would drop from 35% to 15%.

 

So how is Trumps personal tax rate going to drop from 40% to 15%. His corporations tax rate will drop to 15% but that's from a current rate of 35%.

 

Because his proposal is for certain businesses and business owners to be taxed at the 15% rate and he will be able to classify he and his business as one taxed at the 15% rate.

I'm not seeing an issue. The plan will be lowering the tax brackets for everyone. So why shouldn't his personal and business rates also see a break?

  • Author

I am answering questions from others and explaining how Trump (and others) will receive a 60% or more tax cut. Trump should be treated the same as other similar tax payers. If he can get Congress to approve his plan to pass on a huge tax break for himself, congratulations are in order.

I am answering questions from others and explaining how Trump (and others) will receive a 60% or more tax cut. Trump should be treated the same as other similar tax payers. If he can get Congress to approve his plan to pass on a huge tax break for himself, congratulations are in order.

 

So the President is the only one that is getting that tax break?

Because his proposal is for certain businesses and business owners to be taxed at the 15% rate and he will be able to classify he and his business as one taxed at the 15% rate.
I see now. Thanks for the info. Definitely something that would need to be addressed.
  • Author
So the President is the only one that is getting that tax break?

 

... "and others" ...

 

... "Trump should be treated the same as other similar tax payers"

 

I am not saying he is the only one. I agree with you. To further clarify, his plan has carved out a niche of business owner taxpayers that will get taxed at 15% and he can classify himself into that niche.

... "and others" ...

 

... "Trump should be treated the same as other similar tax payers"

 

So others will be treated the same way....What's the issue?

  • Author
So others will be treated the same way....What's the issue?

 

See edited post above. There is no issue I am making UKMF. I am pointing out something in the tax plan and answering questions from other posters.

  • Author

Here is a link to an article that describes the "loophole" I am talking about. My understanding is that Trump will be able to fit his business into this loophole.

 

Trump Tax Cut for 'Pass-Through' Businesses Spurs Debate | Fox Business

 

This whole discussion started because of my opposition to eliminating the AMT. I wasn't trying to make a point for or against Trump himself. That just happened to fall into the AMT conversation as a possible example in favor of the AMT. It is potential loopholes like this that make me say there should be some form of AMT in any tax plan as a safety measure to prevent unfair tax treatment.

Here is a link to an article that describes the "loophole" I am talking about. My understanding is that Trump will be able to fit his business into this loophole.

 

Trump Tax Cut for 'Pass-Through' Businesses Spurs Debate | Fox Business

 

This whole discussion started because of my opposition to eliminating the AMT. I wasn't trying to make a point for or against Trump himself. That just happened to fall into the AMT conversation as a possible example in favor of the AMT. It is potential loopholes like this that make me say there should be some form of AMT in any tax plan as a safety measure to prevent unfair tax treatment.

Let me ask this, if the loophole stays and the AMT stays, wouldn't he still pay only 15% based on the way the loophole works? For the record I hate calling these things loopholes.

Trump will be able to position his business as a pass through which will drop him down to 15%.

 

You, nor I, know for sure he could or could not do this. Purely speculation at this point.

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