What does President Trump's tax plan look like?

What does President Trump's tax plan look like? University of Utah Assistant Professor Nathan Seegert reviewed the plan and what it means for the United States.  The Trump White House released a one page, bullet point sketch of a plan that would reduce the number of tax brackets from seven to three; reduce the corporate tax rate from 35 percent to 15 percent; eliminate all tax deductions except for mortgage and charitable contributions; and eliminate the estate tax.

Seegert says this outline has led a lot of people to speculate about what the proposed tax changes really mean for the economy. For example, all nonpartisan groups say Trump's tax plan will explode the national debt, but they differ on whether it is by $2 trillion or $7 trillion. Seegert says the truth is -- we don't have enough details to know if this is expensive or really expensive.

"In an effort to give a tax break to average Americans, This plan increases the standard deduction. Unfortunately, many of us in Utah will not benefit from this because more people in Utah than the nation as a whole itemize their deductions because they have large charitable donations and mortgage deductions," he explained. 
 
This plan does little to close some of the biggest loop holes and it opens up a new one. Partnerships and LLCs already get preferential tax treatment because they do not pay the corporate income tax. President Trump's plan would exempt them from personal income taxes as well.
 

 


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