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Here’s What You Need to Know About Trump’s Tax Overhaul

by Countable | 5.16.17

The tax code hasn’t been overhauled since the Reagan administration, but tax reform is set to be one of the biggest issues on Capitol Hill this summer with President Donald Trump hoping to tackle it as a legacy issue. His new plan is ambitious and lawmakers on Capitol Hill will have the final say, but the White House says it’s a top priority. “We want to move as fast as we can,” Treasury Secretary Steven Mnuchin told reporters. “This bill is about creating economic growth and jobs.”

Here’s what you need to know about the sweeping proposal:

  • The tax plan would bring the number of income brackets to three from the current seven brackets.
  • It would lop the corporate tax rate by a whopping 20 percent – bringing it to 15 percent down from where it currently rests, at 35 percent.
  • The proposal calls for doing away with most of the categories that taxpayers are allowed to deduct from, though it keeps in place deductions for charitable contributions and mortgage interest.
  • The plan calls for bringing the trillions of dollars held by U.S. companies overseas back onto U.S. soil, but the onetime tax rate on those funds has yet to be determined. Congressional negotiations with the White House are ongoing.
  • The proposal eliminates the estate – or “death” –tax, which only applies to the wealthiest Americans.
  • The tax plan also kills the alternative minimum tax and does away with a 3.8 percent Obamacare tax.

Democrats are using the plan to highlight the fact Trump has refused to release his tax returns, and many say they can’t support a tax overhaul that could mean a windfall for the First Family. “I think it’s a problem to do tax reform where we aren’t sure, is this about policy or how much does this pad the president’s pocket?” Sen. Tim Kaine (D-Vir.) told Countable. “We don’t have the tax returns to make that judgment, so I think that will be an important thing for us to know too.”

Republicans control both chambers of Congress, which makes it possible for them to pass the tax overhaul without Democratic input by using a process called budget reconciliation. That would enable them to pass it with a simple majority of 51 votes, instead of the filibuster proof 60 vote threshold that would require Democratic support. “There’s two ways to do it. 60 or 50 – I’d prefer 60, I’d tie the tax bill to the infrastructure bill, but that’s just me,” Sen. Lindsey Graham (R-SC) told Countable.

Tell your reps what you think of President Trump's tax plan using the "Take Action" button.

- Matt Laslo

(Photo Credit: Secretary of Defense via Flickr / Creative Commons)

Countable

Written by Countable

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(74)
  • Jeff
    05/16/2017
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    Like most republican tax plans, the wealthy will get a tax break and everyone else will pay the difference.

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  • Gabrielle
    05/16/2017
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    The bare bones of this look catastrophic!! And Kaine makes a great point. We have no way of knowing how this effects the first family, especially since they are all still very much involved with their businesses. Ruth Bader Ginsburg said politics is like a pendulum, it will swing back left. Republicans are setting a very dangerous precedent by continually removing checks and balances. If they refuse input from the other side, it will only make things worse. If the republicans go for a 51 majority vote instead of a 60, it will deepen the growing divide between the parties and the country. The amnesiac hypocrisy needs to stop!!

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  • Patrick
    05/16/2017
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    Another huge giveaway to the rich and corporations. All on the backs of the dwindling middle class and working class poor. As Ted Kennedy said "What is it about working men and women you find so offensive?" "When does the greed stop?" We need reps who work for the people, not just the rich and powerful. Trickle economics is a sham! Time to work for us the 99%!

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  • Ticktock
    05/16/2017
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    There may be a good idea or two here but the lower income brackets would be hurt. Corporate income tax dropped to 15%? The average paid now after deductions is 14%. This tax program would be a boon for the super rich. Change the tax code, H__L NO! I would not trust President Trump or the Republicans to change the cats litter box. As recent history shows Trump does what ever serves his interests best and Republicans roll over and play dead. Middle America would get screwed.

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  • Robert
    05/16/2017
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    Because supply-side Reaganomics worked so well the first time; I'm disappointed but not surprised to see the Republican Party completely miss the mark entirely.

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  • Jessica
    05/17/2017
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    Trickle down economics don't work. Please do not give tax breaks to the wealthiest while leaving average Americans flapping in the wind. Also, we the people demand to see Trump's tax returns.

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  • Kathryn
    05/16/2017
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    Do not vote for this tax bill!!!! Only the wealthy will benefit as usual. No tax bill is until Trump releases his tax returns:

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  • Kassie
    05/17/2017
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    What deductions are being taken away with this tax plan? With such a decrease in corporate taxes, it seems like the middle class will be the ones to make up for it. I am not interested in the, "Making the middle class pay for corporations will create jobs," loop that plays over and over again, because I've seen the jobs that corporations create. They try to get out of paying a living wage and then drop you at their earliest convenience. I'm more interested in the government helping small companies to offer insurance and to put money into education. Help universities create jobs--they provide much more stable employment, offer good pay and benefits, and value education. Corporations aren't interested in these things. They won't create jobs--they'll just get richer.

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  • Cynthia
    05/16/2017
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    So we are going to give money to people who already have it and take it away from those who have less? How does that make sense? This bill is ridiculously obvious Trump only cares to make things better for the wealthy and far more difficult for middle class and lower. Please vote no on this!

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  • Karen
    05/17/2017
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    Once again....only the rich will be helped by this horrible bill!! Vote NO

    Like (5)
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  • Darin
    05/16/2017
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    Take no action on tax overhaul until the President discloses his taxes. Without those disclosures, how can we be certain his tax plan will be of good to anyone but himself. He is continuing to drain public funds to benefit his family and his companies in clear violation of the emoluments clause.

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  • Jan
    05/17/2017
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    Trump's supposed tax overhaul plan only serves the rich. My daughter has 3 children and struggles to make ends meet. She would likely end up having to pay more tax. I think this plan stinks. Why do I want to further support people like Trump with my tax money?

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  • Robin
    05/17/2017
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    Say no to Trump's tax plan. Raise taxes on the wealthy to subsidize lower corporate taxes. Reestablish the estate tax. Make the rich pay their fair share. No loopholes!

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  • Nathaniel
    05/17/2017
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    This is an excellent plan, businesses are the backbone of American wealth and prosperity, we should never Tax them too much, especially to the point where they feel they should move to other countries or keep capital out of the country.

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  • Gail
    05/17/2017
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    Me. Trump's tax plan is only for the wealthy! There should be NO Tax Reform without The Internal Revenue releasing Trump's full tax returns for the last 10 years. His Lawyers say he have no Russian investments but THEY RECEIVED THE "RUSSIAN LAW FIRM OF THE YEAR" Award in 2016.

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  • Sue
    05/17/2017
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    Will Trump be releasing his returns? Will this new tax "deal" rob from the poor & benefit the rich?

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  • James
    05/17/2017
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    I feel the bill has perhaps more holes than Swiss cheese. How can you make an intelligent decision when you only see some of the bill and not all of the bill. I still feel the middle class is getting shafted.

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  • Melanie
    05/16/2017
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    With a new crisis in the White House, it is doubtful there will be any substantial legislation. That may be a blessing since what they are up to is immigrant persecution, an 800 billion tax break for the uber rich and last but not least, depriving our most vulnerable of health care. What a government!

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  • Amy
    05/17/2017
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    Richy Rich needs to pay all the taxes he never has. How dare he sell us a tax plan?!

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  • Kay
    05/17/2017
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    No legislation until we know the extent of the ties to Russia of this administration.

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