Watch LIVE

Trump's tax plan will never fly with Dems -- here's why

US
(Photo by Mark Wilson/Getty Images)

What happened

President Donald Trump and congressional Republicans released a new tax proposal on Wednesday.

What are the main points of the tax proposal?

  • The proposal plans to simplify the personal-income tax process by replacing (most) itemized deductions with a higher (nearly double) standard deduction.
  • The seven tax brackets we have currently (10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent) would be reduced to three brackets: 12 percent, 25 percent and 35 percent.
  • The corporate rate would be reduced from 35 percent to 20 percent.
  • S corporations, partnerships, and sole proprietorships would be taxed on a rate of 25 percent. (Currently these businesses are taxed through the owner’s income tax as high as 39.6 percent.
  • Estate taxes would be eliminated entirely.

That doesn’t sound too bad. What’s the catch?

Because the tax brackets would be narrowed from seven to three, many people with lower and middle incomes will be moved into a higher bracket, while the wealthiest will enjoy a decrease from 39.6 percent to 35 percent.

According to Pat Gray, Democrats will no doubt capitalize in this tax break for the rich as a reason to toss out the entire tax proposal. “They gave the Democrats every talking point they possibly would need in order to shut this thing down,” he lamented.

Listen to this podcast from “Pat Unleashed” and let us know your thoughts on this latest tax plan proposal.

 

To see more from Pat Gray, visit his channel on TheBlaze and watch “Pat Gray Unleashed” live weekdays noon–3 p.m. ET or anytime on demand at TheBlaze TV.

Most recent
All Articles