Will tax reform failure kill the GOP?

US President Donald Trump speaks before a meeting with lawmakers in the Cabinet Room of the White House

Trump intends to sell the proposal tomorrow as a populist "tax cut".

Trump is expected to announce a detailed tax plan on Wednesday, but many with knowledge of the situation are skeptical that he will provide adequate detail.

NY ranked second among all states for the amount it residents deducted for real estate, income and other state and local taxes, totaling about $68 billion per year, according to the most recent IRS statistics.

The outlines of the plan were described by GOP officials who demanded anonymity to disclose private deliberations. Republicans believe the corporate rate cut and other incentives will stimulate economic growth, offsetting the revenue loss.

Lastly, this tax-reform effort promises to be a tax cut to the tune of $1.5 trillion.

For corporations, the tax rate would decline to 20 percent - slightly higher than the 15 percent Mr. Trump has mentioned, but significantly lower than the current rate of 35 percent.

Mr. Neal said he favored keeping the top rate at 39.6% and wanted to see distribution tables, or estimates of how each income group would fare in the plan. The tax break lets tax filers who itemize deductions write off their property taxes as well as their state and local income taxes or general sales taxes. Congress needs to remedy these issues that almost every small business owner faces by making it easier to comply with the tax code and charging more reasonable rates. Politicians know that it is quite easy to miscategorize or simply lie about the overall impact of their tax plan because Americans are economically illiterate.

Profits of small, pass-through businesses that go directly to the owners are now taxed at the individual income tax rates, often at the top level of 39.6 percent.

For individuals, there is much less clarity.

Republicans are viewed as the preferred party to get something done on tax reform, with 41 percent saying they think congressional Republicans can be trusted to handle tax reform and 35 percent saying they trust congressional Democrats more. There would be different repatriation rates for different types of assets, but as with many parts of the proposal, the rates would be up to Congress to decide.

Rates in the lowest tax bracket, however, may actually increase, from 10 percent to 12 percent, according to a report Tuesday from Axios.

Trump has called for cutting the corporate rate to 15 percent, down from the current 35 percent.

Conversely, if companies don't feel that market pressure, and have freedom to expand their profit margins, it's wealthy shareholders who will get the extra money from the tax cut.

While the deductions on mortgage interest and charitable donations will remain, the standard deduction will double. It will be up to lawmakers to determine how much higher to make it.

Those results could spell good news for the GOP as they shift their focus from repealing and replacing Obamacare to reforming the tax system.

But under Trump's plan, while a person making $9,325 or less would be bumped up to the 12% tax bracket, the standard deduction would be $12,700, meaning they wouldn't see their effective tax rate increase.

One of the other top issues for voters, according to the poll, is creating a tax code that rewards businesses for prioritizing American workers.

The plan also is expected to reduce the number of tax brackets from seven to three.

Rep. Carlos Curbelo, R-Fla., a House Ways and Means Committee member, said members have already been meeting to find ways to pay for tax cuts.

Senate Finance Chairman Orrin Hatch, R-Utah, a member of the Big Six, has said he'll regard the document as a guide, but his panel won't be bound by it. But that provision, they said, will not be permanent but will sunset after five years due to its cost.

Cross your fingers: The push for tax cuts is supposed to kick off Wednesday, as Republicans in Congress and President Trump's top people release their plan.

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