On the campaign trail, Donald Trump has promised to raise corporate taxes by an average of 5.9%, and his administration has taken steps to boost the corporate tax rate to 28%.
But that rate is set to go down again after the end of the year.
“We’re going to have a big corporate tax cut,” Trump told the New York Times on December 10.
“And it’s going to be a big tax cut for the middle class.”
The tax cuts Trump has called for are in many ways a giveaway to the wealthy, and the corporate rate will not rise for the first time in decades.
In fact, the corporate share of the nation’s income will rise, which means that even more people will pay more in taxes.
Trump has also proposed to eliminate deductions for the corporate income tax and to double the standard deduction.
The corporate tax bill he released on January 20 is estimated to cost $5 trillion over the next decade, which would make it the largest tax cut in history.
That would make the corporate taxes the highest in history and leave Americans paying the highest tax rate.
The corporate tax cuts will likely hit the middle-class hardest and are likely to push up the real estate market and the cost of housing.
In addition, Trump’s tax cuts would disproportionately affect those at the very bottom of the income scale.
According to a study by the nonpartisan Tax Policy Center, the middle middle class will pay an average 10% of their income in taxes in 2027, but those earning under $50,000 will receive only 7% of their income.
Additionally, a recent analysis by the Center for Budget and Policy Priorities found that the business pass-through tax was the single largest tax break that was not expanded during the Trump administration.
If the corporate tax were reversed in 2027 the average middle class family would see $15,000 in taxes increased, while the average upper-middle class family would see just $6,000.
Trump’s plan is a gift to the wealthiest, but it is also a threat to the middle class The Republican plan would also dramatically reduce the amount of tax returns Americans pay.
As the economy slows down and the economy shrinks, the wealthiest Americans will have more money to spend on entertainment and luxury goods.
To make matters worse, the middle middle classes are already struggling to pay their mortgage and have been filed for bankruptcy in the past two years.
Furthermore, most middle-class families are failing to receive tax relief.
On top of that, Trump has said that he doesn’t want to make much of a dent in the corporate tax burden, and has said that he will reimburse companies for the tax cuts that they make.
However, he also has said that he would immediately give companys a tax credit of $5,000 per employee if they reclassified their corporate income as pass through income.
Trump also said he would impose a 15% bonus on corporate profits to offset the cost of reclassifying company profits. Companies that do not rebrand their profits as pass through profits will also be subject to higher tax rates as a result of this reinterpretation.
It is also likely that many companions will end up reincorporating in a corporation that has reframed their corp as pass through.
What do you think?
Do you think Trump is right to reintroduce the Corporate Tax Rate?
Or should corporate profits be rebranded as pass-throughs?
Sources: https://www.breitbart.com/big-government/2017/12/17/trump-reintroduces-corporate-tax-rate-backlash/ http: www.businessinsider.com https://twitter.com/#!/paulcurry http:/ http:\ www: twitter.org/paulcburry https:\ https: youtube.com\/watch?v=Vq1wCZrZfVU http:(https://paul_curry