Proposed tax plan means more taxes for New Yorkers

Credit Tax Policy Center

Want us to verify something for you? It would be a shame if our political polarization led to policy paralysis on a fundamental issue such as tax reform.

The new, controversial Republican tax plan was released by Donald Trump earlier this week.

First, the GOP tax plan framework would lower taxes for individual Americans. Hatch and others have described the plan that emerged this week as a broad set of goals, not a detailed plan. While many crucial details are still under debate, the tax plan has greatly exceeded my expectations and promises to drive significant economic growth. The $500,000 in savings is a rough estimate because Trump has not specified income levels for his proposed tax brackets.

However, the new plan suggests that congress might add a fourth bracket if needed - higher than the 35% - applied to the highest-income taxpayers. Mike Pence in May 2013 and included the immediate elimination of the state's inheritance tax as well as reductions in the state's personal and corporate income tax rates.

Information for this article was contributed by Peter Baker of The New York Times; by Mike DeBonis of The Washington Post; and by Alexis Leondis and Sahil Kapur of Bloomberg News.

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As the brackets now stand, an individual would need to make more than $37,650 and a couple more than $75,301 to fall into the 25% bracket. It is well past time for fundamental tax reform that offers a simpler, fairer tax code. Those facing the biggest tax increases could be upper-middle-income and high-income professionals, he said. But the loss of exemptions will reduce the effect of this increase. In addition, the plan aims to simplify the tax process, Mulvaney said. Due to the growth of taxation, Californians are expected to take $234 billion in SALT deductions over the next decade.

The following graphic breaks down how Trump's plan compares to the current law for a couple earning $75,000.

The analysis also found the plan would provide disproportionately large benefits for businesses compared to what the middle class and low-income Americans would receive.

"As I've said from day one, eliminating the federal deduction for state and local taxes will unfairly burden the over three million hardworking taxpayers in NY who claim the deduction", Rep Claudia Tenney, R-New Hartford, Oneida County, said in a statement. "If you're a business that's creating manufacturing jobs, you will get the benefit of that rate because that is income that will be passed through to help create jobs and better wages".

Overall, presidential aides say the system will remain as progressive as it now is, a big shift from prevous GOP tax bills that critics say were skewed to the wealthy.

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But it's already clear that one provision disproportionately hurts high-tax states like California, New York and New Jersey that did not support Trump in the 2016 election: Trump aims to do away with the federal tax deduction for state and local income and property taxes. The Trump Organization stands to benefit, "bigly", as the "vast majority" of its income is taxed via pass-through enterprises, according to Vox. Two of the most popular deductions are explicitly being retained - for mortgage interest payments and charitable contributions.

Companies would be allowed to immediately write off investment expenses, though only for five years.

But the AMT increased Trump's tax liability that year by over $31 million.

But the president did launch into his proposed tax plan, which his administration announced on Wednesday. Trump's plan would end the USA practice of taxing the foreign profits of US -based corporations. Roughly 95% of US businesses, from small businesses to massive hedge funds, are subject to pass-through taxation.

The framework is exactly that-a guide that shows what Republicans would like to do to the structure of our tax laws.

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