Trump tax plan: Relief for his voters but lots of unknowns

The standard deduction in 2017 is now $12,700 for joint filers and $6,350 for single filers.

"It's a very lopsided plan to the top end of the income scale", says Chuck Marr, director of federal tax policy for the Center for Budget and Policy Priorities. New Jersey homeowners paid the highest tax rate a year ago, at 2.31 percent, RealtyTrac says. How much a middle class family could expect in tax cuts, and whether the plan would be revenue-neutral. Repealing the individual alternative minimum tax and taxing pass-through companies as businesses instead of through the individual code will save millions of dollars each year for someone as wealthy as President Trump claims to be.

"Regardless of the plan's fate", the editorial board writes, Trump "has already sent a strong message about where his sympathies really lie". The current business rate is 35 percent and includes many exemptions.

Trump's new plan is silent on this issue as well.

The plan calls for doubling the standard deduction that people can claim on their income tax returns, which would lower tax bills for some taxpayers and lead to a much simpler tax filing process for others.

The New York congressman spoke on " Squawk Box " a day after the Trump administration released an outline of its tax plan.

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The centerpiece of Trump's plan would cut the corporate tax rate from 35 percent down to 15 percent, exempt foreign earnings from US taxation and reward companies that have been parking cash overseas to avoid taxes. But the administration has yet to determine the income levels for people who would be put in each bracket.

[I will] massively cut taxes for the middle class, the forgotten people, the forgotten men and women of this country, who built our country.
Without it, he would have paid just $5.5 million, according to a leaked copy of that year's return. But all other deductions, except for mortgage interest and charitable contributions, would be eliminated, including state and local taxes and medical expenses.

CRFB estimates the overall cost could go as high as $7 trillion if limits on tax breaks that the plan suggests apply only to high earners.

Don't fall for Trump's corporate tax giveaway. The 40% tax now applies to a $5.5 million inheritance for individuals and $11 million for married couples. This is about lowering business taxes.

But he ducked when asked how the plan would affect Trump, who has refused to release his income tax returns.

"This is about creating economic effect for small and medium-sized businesses and making sure they have the same opportunities as large corporations". "It's not true that you will have it for free - that tax cuts will pay for themselves".

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