Business leaders, academics size up Trump tax proposal
President
"Anytime you can start a conversation about lowering the tax rate for small business, that's a good place to start," said
The document released from the Trump team is just a single page with bullet points. It's more of an outline of priorities than a detailed proposal, which his administration has promised is on the way.
As outlined, the proposal would slash the corporate tax for large and small businesses to 15 percent from the top rate of 35 percent. It would also allow owners of passthrough entities, such as sole proprietorships, partnerships and S corporations, to be taxed at the same 15 percent corporate rate.
On the individual level, Trump's plan would shrink the number of tax brackets from seven to three, starting at a 10 percent tax rate on income, then 25 percent and topping out at 35 percent.
"What we are hearing is that not only are (businesses) looking for lower rates to allow extra money to be put back in the business, but they're looking for simplicity and consistency," Hegt said. "Because you can't run a business without knowing what next year's tax law will be."
"It can't be as draconian as it is," said Cohen, a retired vice president and general tax counsel for
The Tax Policy Center said the proposal to cut the corporate rate to 15 percent would reduce federal revenue by
A study by the Committee for a Responsible Federal Budget estimated the tax plan could cost
One proposal of particular concern in
"It's unfair to people in our area who own homes or live and work in high tax jurisdictions like
Residents in
New Yorkers as a whole claimed
The possible elimination of deductions for state and local taxes could prove particularly harmful to the real estate market. The
The proposal keeps in place the mortgage interest deduction that helps home-owners save on their taxes, but it also doubles the standard deduction. This could mean fewer people itemize their tax returns and take advantage of the mortgage interest deduction, according to
"Especially for the middle class, it would negate any positive impacts from home ownership," Weiden said. He said the plan "would have the most negative consequences for states like
On the business side,
"That would allow a company like
But smaller businesses could see benefits as well, he said.
"It will enable companies to show improved net income because of the capitalization and lower tax rates," Jacobi said. "It would all around be a positive for businesses located in
Jacobi described Trump's proposal as the "opening kickoff." Similar to attempts to repeal the Affordable Care Act, he said Trump will need a delicate balancing act to get the bill through
"The
The president's plan is not off to a great start with
Sen.
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