The Principles Behind Trump’s Big Tax Reform Plan
The Principles Behind Trump’s Big Tax Reform Plan
After months of promises and speculation, not to mention a never-ending supply of political rhetoric, the new presidential administration finally released its plan for tax reform, titled “2017 Tax Reform for Economic Growth and American Jobs.” So how big is it? If you believe the National Economic Council Director Gary Cohn and Treasury Secretary Steven Mnuchin, it will be the “biggest individual and business tax cut in American history.”
Tax Reform Goals
It’s no secret that President Trump, as well as Republican lawmakers, had his eyes set on major tax reform for many months. Now that Republicans have control of the White House, the Senate, and Congress, the scene is set for a major overhaul. The new administration is promising big changes with several goals in mind as they promise to give American taxpayers a big break. Per the one-page release from the Trump administration, there are four major goals that they hope to accomplish with their tax reform plans: ? Grow the economy and create millions of jobs ? Simplify the country’s burdensome tax code ? Provide tax relief to American families – especially the middle class ? Lower the corporate tax rate from one of the highest to one of the lowest
Formal Proposal Later This Year
Although the release did not include a lot of specific details, the administration said those details would be shared in a formal proposal later this summer after more consultation with congressional leaders. However, the major principles behind the reform are very similar to those promised and promoted by President Trump during the election cycle. So far, he has not wavered from those principles. There were some specific ideas shared in the release that are indicative of the changes that are likely ahead. Additional Changes and ReformAccording to the release, as far as individual reform is concerned, the administration wants to bring true tax relief for American families by reducing the seven tax brackets to three tax brackets of 10%, 25% and 35%, doubling the standard deduction, providing tax relief for families with child and dependent care expenses. They also hope to simplify things by eliminating targeted tax breaks that mainly benefit the wealthiest taxpayers, while at the same time protecting the home ownership and charitable gift tax deductions. As for business reform, the administration wants to lower the corporate tax rate to 15 percent, create a territorial tax system to level the playing field for American companies, implement a one-time tax on trillions of dollars held overseas, and eliminate tax breaks for special interests.
What’s Next?
So what’s next? According to the release, the Trump administration plans to hold listening sessions with key stakeholders throughout the month of May. They hope to receive their input as they move forward and plan to continue working with the House and Senate to develop the details of a plan that provides massive tax relief, creates jobs, and makes America more competitive—and of course to finalize a plan that can pass both chambers.
Tax News
Tax Reform
newsletters.usdbriefs.com/2017/Tax/TNV/170426_1suppA.pdf
We hope you found this article about “The Principles Behind Trump’s Big Tax Reform Plan” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Hello? Is This Really the IRS, or Just a Scam?
No one enjoys getting a call from the IRS, but getting a call from someone who claims to be from the IRS, but who is really just a scammer, is even worse. However, according to the country’s top tax agency, that is exactly the kind of sophisticated and elaborate scam that has been going on…
United States and Singapore Buddy Up on Tax Evasion
For those who are still not convinced that the United States is serious about tracking down tax dodgers who are trying to hide money in offshore accounts, here’s one more piece of evidence that might change your mind. In a deal announced last week, the country of Singapore says it has come to terms with…
IRS Overpaid by $6 Billion in Child Tax Credits in 2013
Although no one will probably ever shed a tear to hear that the IRS paid taxpayers too much money, this latest report does nothing to breed confidence in how things are run in the nation’s tax collecting agency. According to reports, the IRS paid about $6 billion in child tax credits last year to people…
Small Business Stock Gain Exclusion Receives 2014 Extension
It’s not like the government to bring everyone some well-needed Christmas cheer, but the new tax bill that lawmakers were finally able to pass brought some good news for many investors before the year ends. It’s unfortunate that it took the entire year to get it done, but at least the tax provisions that did…