Trump tax reform could hurt farmers

The tax reform would eliminate state and local tax deductibility for high-tax states like New York and California

The original goal of the AMT was to prevent very wealthy Americans from using deductions and loopholes to skimp on their taxes. 1986 is calling, and wants its rotary phone back.

"My administration is working every day to lift the burden on companies and workers so you can thrive, compete and grow", Mr Trump said in a speech to the National Association of Manufacturers.

U.S. President Donald Trump participates in the commissioning ceremony of the aircraft carrier USS Gerald R. Ford at Naval Station Norfolk in Norfolk, Virginia, U.S. July 22, 2017.

As the latest bid to repeal Obamacare fizzled in the Senate, Trump and Republican leaders rolled out the outline of a tax plan.

Our plan is focused on benefiting hardworking American families, not the well-connected with their army of lobbyists.

The plan includes a reduction in the corporate tax rate to 20% from 35%, a consolidation in the personal income tax brackets to three from seven, and a sharp increase in the standard deduction. "It means you're more loyal to your political bosses than the people who represent you". President Trump and I are standing up for you.

This tax plan's cuts read as if they were crafted by a committee of self-serving billionaires. "It's time to take more money out of Washington's pockets, and put more of it in the pockets of Americans".

Any changes will be detailed in the coming tax bills, and surely they will look very different than the nine-page primer unveiled last week. If passed, such a law would have a major effect on many large and midsize law firms, immediately increasing how much partners have to pay in taxes. Yet small businesses create the majority of new jobs. "This can be done through incentivizing the manufacturing sector and small business growth, as well as lowering rates on businesses and investments".

The Trump tax plan is out, and it is grand in scope, though scanty on key detail.

We must also recognize that America has become uncompetitive on the global stage.

The plan proposes to lower the top tax rate from 39.6 percent to 35 percent, while still leaving the door open to an additional top rate that would apply to the highest-income taxpayers.

In order to prevent companies from keeping their wealth overseas, the proposal would move to a territorial system. America should be the single best country in the world to start and grow a business, because that's how jobs are created.

And any benefit gained by the lower tax rate may be reduced by the loss of certain deductions, Gaulin said, such as for state and local taxes.

But the 10-point gap between the proposed pass-through rate and the ordinary wage income rate could tempt a lot of people to recharacterize their paychecks as profits to get the lower rate.

I'm a little exhausted right now, so I hope you'll all excuse me if I don't dive too deeply into Donald Trump's newly-released tax plan right now.

Under the proposal, typical middle-class families will have less income subject to federal tax. For the good of the American economy - for the health of our democracy - for a future without trillion-dollar-deficits as far as the eye can see - here's hoping the president's proposal eventually morphs into something that qualifies as reform.

The push for tax reform comes after repeated failures on behalf of Republicans to repeal Obamacare, and Treasury Secretary Steven Mnuchin said recently that tax cuts are "on track" to occur by the end of the year.

In 1986, President Ronald Reagan's tax plan initiated an era of unprecedented economic growth and prosperity.

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