The new tax reform plan released by the Trump Administration this week is particularly relevant to Americans living in Israel, many of whose tax returns were red-flagged in previous years for audits by the Internal Revenue Service for no reason other than the fact that they filed from Israel, according to an IRS source.
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Rick McVey, owner of Dilly Lily, works at his shop Wednesday, April 26, 2017, in Chicago.
President Trump’s new tax plan proposes some dramatic changes. The benefit to Trump could run as high as tens of millions of dollars a year. It was not clear whether the plan would keep the exclusion for employer-provided health-care plans, which, if taxed, could substantially raise taxes for middle- and working-class workers. But Trump’s top economic adviser used some bad math to describe the proposal, raising questions.
With the administration’s proposed higher standard deduction, for example, more taxpayers may choose not to itemize deductions for things like home mortgage interest or chartable contributions, he offered. But that’s not double.
Cohn said the deduction would create “a zero tax-rate for the first $24,000”.
“If I am individually paying 35 percent, I will tell you that’s more. OK?”
During the campaign, Trump said he would release the returns after an audit was complete, even though the Internal Revenue Service does not prohibit those under audit from releasing that information.
For decades, Republicans have made cutting taxes for the wealthy and powerful priorities over investing in America’s young people, building stronger communities or expanding opportunity for struggling families.
The second tax break in the president’s plan that would be especially generous for the Trump family is a repeal of the federal estate tax.
The Trump administration has outlined its new tax proposal which leans heavily on tax cuts, but what would it mean for your household here in Western Washington?
Currently, the American tax code has seven brackets. “This plan is just tax reform”, he said.
Many details, however, remained missing from the initial proposal. The top income tax rate would be reduced from 39.6 percent to 35 percent. But there’s no detail on which incomes fall under each bracket.
For example, the plan would eliminate the tax deduction we now have for the Wisconsin income taxes we pay.
The broader GOP fight is likely to focus on cost and how to pay for the individual and corporate tax cuts, if at all. Claudia Tenney, a conservative-leaning Republican who represents parts of central NY, said until the state overhauls its own tax codes, New Yorkers “cannot afford” to lose their itemized deductions because the benefit offers state residents one of their few forms of tax relief. “That is a bad situation for this country but last year is not this year”. Mr. Trump would also apply that 15 percent tax rate to pass-through income that business owners get from limited liability companies, a change that would directly benefit real estate developers like him.
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But Mr. Trump’s decision to facilitate the corporate tax cut to real estate conglomerates as his own will give Democrats a ideal line of attack.
