The Trump tax plan can be reviewed here.
Notable features include exemption from federal income taxation entirely for up to about 73 million households who make up to either $25,000 individually or $50,000 jointly.
This is in the spirit of the original income tax law, which for its first few years, that is until the demands of World War I and the bureaucratic state came into play, taxed the incomes of no one except the very wealthiest.
It is unclear whether the plan retains the child tax credit or the earned income tax credit, two programs which effectively transfer welfare to lower income families who pay no income tax anyway and who receive through these two vehicles what is effectively a rebate of Social Security taxes they pay as employees, eliminating its regressivity.
For the rest there are just three tax brackets of 10%, 20% and 25%, kicking in at joint incomes up to $100K, up to $300K and beyond $300K. Presumably, but not stated, short term capital gains are taxed at these ordinary rates. Long term capital gains tax rates are 0% up to $100K of joint income, then 15% and 20% up to $300K and beyond $300K of joint income.
Business taxes are slashed to 15% no matter the size, which is YUGE for American competitiveness.
The AMT is eliminated entirely, along with the marriage penalty and . . . the death tax. It's going to be unbelievable!
Deductions are capped for the richest Americans, but deductions for charity and mortgage interest are retained.
We'll see what the dynamic scorers will have to say about it for revenues, as time goes by.
