Treasury Secretary can’t guarantee middle class wouldn’t pay more under tax plan

So right now, the official Trump line is that Trump’s tax cut is not about the thing that it in fact would do.

Will it help the middle class and/or businesses?

The confusion seemed to arise from CNBC’s Eamon Javers, who asked White House spokesperson Sean Spicer during his daily press briefing about the Trump administration’s detail-free tax proposal and its treatment of “401 (k) s and particularly tax deductions surrounding those”.

“That’s not tax reform”, said Senate Minority Leader Chuck Schumer, D-NY, said of Trump’s plan.

In California, eliminating the deduction would likely have little impact on the poor or the lower middle class. California’s income tax system takes the most from the wealthy. In contrast, a family in the top 1 percent would save about $215,000 and family in the top 0.1 percent would save over $1 million.

It is now taxed at 40 per cent but only affects the richest 0.2 per cent of Americans, according to the Centre on Budget and Policy Priorities. The top income tax rate would be reduced from 39.6 percent to 35 percent.

Separately, the CFRB says only a pie-in-the-sky sustained growth estimate of 4.5 percent over 10 years would cover the costs.

These are the 1 percenters, people like Trump who make millions a year and are worth even more.

The nominal corporate tax rate would be lowered from 35 percent to 15 percent.

“The details of taxes are very complicated and we’re committed to working quickly and getting this done”, the treasury secretary said.

Near zero. Many individual taxpayers will balk at the removal of their itemized deductions, and Republicans in Congress will not want to support a plan that leads to such substantial increases in the deficit.

[T] he plan would increase the standard deduction from $12,600 to $24,000 ($12,000 if single), and eliminate personal exemptions. One would let parents deduct the average cost of child care in their state, based on their child’s age. That never happened. In 2001, President Bush signed a big tax cut, again predicting it would set off a boom.

As such, the mortgage interest tax deduction exacerbates inequality in housing. And rental households obviously don’t see the tax benefit, since they don’t have access to it.

Trump’s plan would also slash taxes on corporate cash parked overseas, but it was unclear whether they would stimulate a surge in investment and job creation in return.

Repeal the alternative minimum tax: The AMT is an alternative method of calculating federal income tax that runs parallel to the ordinary method.

It’s easy, after all, to declare cuts to individual and corporate taxes, but not worry about how to pay for it. That rate rises to almost 39% if taxes levied at state level are included. The true effect will depend on how the Trump administration defines a small-business owner. I say nominal because many, if not most, businesses find loopholes that allow them to pay less. Because candidate Trump was on this show telling our viewers a year ago that he believed in raising taxes on the wealthy, including himself.

US President Donald Trump’s proposed tax cuts for individuals and businesses could add trillions of dollars to the country’s budget deficit and would significantly benefit the wealthy, according to fiscal experts and lawmakers.

Atwater (and plenty of Trump voters) also advise Trump to raise the minimum wage.

The No. 2 Democrat in the Senate, Dick Durbin, attacked the tax proposal and the fact Trump, a wealthy NY real estate developer, had declined to make public his personal tax returns.