Proposed tax cut for O/O's...?

The Trump plan is just the initial proposal. We'll see how much it gets changed after it gets funneled thru the congress. I watched the entire presentation that was given the other day by the two guys heading DT's tax agenda. Overall, the plan looks pretty darn good. But we all know that is just the start of the negotiation. Lots of battles coming. That 15% corporate tax, we will be lucky if it gets down to 20%. And who knows where the caps will be on the income tax brackets of 15%, 25%, and 35%. Where the income knocks someone into the next tax bracket will have to be seen.

And in this proposal, a lot of personal deductions will go bye-bye. They made that clear. The only personal deductions that they left in place was mortgage interest deduction and charitable contributions. So while the tax rates are going down, the deductions are going away so that some folks will not see any reduction in actual taxes.

 

So in other words just a shell game. I'd rather keep as is and take deductions.

 

Most of these things are shell games. Always look behind the proposal and see what they are really up to. Unfortunately, rags like Overdrive just spewed out the talking points and didn't really expound on what these guys said in the press conference. It is probably on YouTube somewhere and you can see the entire proposal presentation. And then you will see the shell game in action.

 

People in higher tax brackets are going to love this. I guess I need to work at getting into a higher bracket.

 

This is what Reagan did in the 80's, made it sound like we were getting such a good deal out of it but in reality taxes didn't go down for the average person like they were expected.

 

Actually, according to the proposal the higher income folks are not going to see much, if any tax break. They might actually get hit for more. The top bracket is 35%, down from 39%, but the amount to make that will kick you into the top bracket is going to be much lower than the current $400,000 income level. Not specified outright, but insiders have said that DT has proposed making $200,000 the new level to hitting the top bracket. When you combine that with many personal deductions going bye-bye, the top income earners may be screaming a little.

Everything I heard in the presentation of the tax plan really does seem to favor the middle income and lower folks. But it is just a proposal. If it gets all messed up, you know who to blame.... the congress. You know, those people that are called "representatives" of the people but are in fact representatives of various interests that may not necessarily be aligned with the "people". After all, congress writes tax law, the president doesn't. DT, Reagan, or any other president can only tell congress what they want. Whether the president gets his wishes is another story.

 

Doubling the married deduction is nice.. We'll see if that one makes it through..

 

Your correct. As a company driver I stand to loose over $20 k in deductions so I urge all company drivers write your congressmen to oppose the Trump Tax Plan in its current form. It is a wolf in sheep's clothing. Non business such as company drivers which comprise most of the drivers in the USA will pay for the business owners getting a deduction !

 

If when the dust settles, you end up with the same tax liability, even though you have less deductions, I'd count that as a plus. The simpler the tax code, the better.