The Presidential Inauguration is tomorrow and, wherever you stand on the whole thing, there is no escaping that our country is entering a period that is sure to bring major change. In this space, we focus on the tax side of things, and President-elect Trump has repeatedly said that major tax reform is an overwhelming priority, promising to command a good deal of his attention during his first 200 days in office.
With Republicans also controlling the House and Senate, one would think the reform Trump wants would be quickly achieved, even with the standard Democratic opposition. Reality, however, is a different matter, and in recent weeks, major differences have arisen between Trump’s vision for the tax law and those shared by other Republican leaders, most notably Kevin Brady, Chairman of the House Ways and Means Committee and the author of the GOP’s 2016 “A Better Way,” a blueprint for tax reform.
Let’s take a look at the differences between the proposals set forth by Trump and Brady — both minor and major — and see where they fall out on a “Problematic Scale” of 1-10.
Authored by Tony Nitti, Withum Partner and writer for Forbes.com.
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Posted in Uncategorized, tagged accountants, accounting, court, cpa, law, obama, politics, republicans, tax, taxpayer on March 20, 2012|
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House Republicans released a budget proposal today that would consolidate the six current individual income tax brackets into only two — a 10% and a 25% bracket — while also reducing the top corporate rate to 25% and eliminating taxes on U.S. companies’ overseas profits.
The proposal is part of a larger election-year message signifying that Republicans — unlike their Democrat counterparts — have a plan to balance the federal budget in a way that does not necessitate tax increases.
As part of Congressman Paul Ryan’s plan, spending would be cut on Medicare, food stamps, college tuition grants, and other “safety net” programs. The plan would produce a 10-year deficit of only $3.13 trillion, less than half the deficit created by President Obama’s recently released budget.
Equally as predictable, Democrats’ panned the proposal as screwing the poor to finance tax cuts for the rich.
Either way, from a tax perspective the proposal is as meaningful as rearranging the deck chairs on the Titanic, as neither side realistically expects the suggested reform to become law. Rather, the Republican plan is aimed towards establishing the party’s position on spending and taxes prior to the November election.
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