That language would change the constitution to allow for future tax code changes to be tailored to specific classes of taxpayers like, for example, residential property owners only. "They can call me all they want. We will all succeed & grow together - as one team, one people, & one American family, #taxreform".
Over the past several months, I've worked with House Republicans and President Trump to address this issue. And it can't be middle-class interests that they sacrifice, even though some Republicans consider broad-based tax relief a distraction from the imperative of promoting economic growth.
Our plan is focused on benefiting hardworking American families, not the well-connected with their army of lobbyists.
Congressman Tom Reed (R-Corning, NY 23) said earlier this week that while State and Local Tax deductions may be reduced or eliminated, the new tax code would make up for it by increase the amount of standard deductions available to taxpayers on their annual federal income tax. For a period of five years, companies could further reduce how much they pay by immediately writing off their investments.
Those who defend the current tax code are defending a manufacturing worker in OH losing a job to a worker overseas. President Trump and I are standing up for you.
Under the new tax plans, profits that have accumulated offshore will be subject to a one-time low tax, thereby ending the tax incentive to keep those profits offshore. The more we wait, the less money we will invest in research and development for new technologies or lifesaving breakthroughs. The proposal features many items that could help small businesses, including those that manufacture, distribute and install doors and windows.
"That means more production, more investment and more jobs", he said.
"It would be hard to imagine that the definition of a small business, when determined, would fit the characteristics of a large firm, but we don't know at this point", said David Gaulin, who leads the law firm services practice at PricewaterhouseCoopers.
Under Argall's plan, all school property taxes would be eliminated and the funding stream for public schools would be replaced by: 1) raising the state personal income tax from 3.07 percent to 4.95 percent; and 2) taking the state's 6 percent sales tax to 7 percent and applying it to a broader base of goods and services.
We must also recognize that America has become uncompetitive on the global stage. So you actually can make a case for cutting the corporate tax rate - as the Republicans want to do, from 35 percent to 20 percent - if you counterbalance it by increasing tax rates on capital gains. This is why American companies have made controversial decisions to move overseas, settling in countries with significantly lower taxes.
As the state with the highest tax burden, California that amount to 12 percent of USA population, are expected to pocket 18 percent, or $17.1 billion of SALT deductions in 2017, according to an analysis by the Tax Policy Center. Scrapping them entirely would be ideal - that's the way to really level the playing field and help lower- and middle-class workers.
The framework will reduce the corporate tax rate to 20 percent. As seen in Figure 1, families with incomes over $484,000 received an average personal income tax cut of $1,555 this year, compared to just $54 on average for the middle 20 percent of in families (or approximately $2 per bi-weekly paycheck).
"This huge tax cut will be the rocket fuel for our economy", Trump said.
One of the most unbelievable things about the Republicans' health care pitch was that the party promised that their plans would reflect Democratic priorities: Americans could take comfort in the fact that there'd be universal coverage, protections for those with pre-existing conditions, low consumer costs, and an emphasis on protecting families and their interests. For almost a decade, America's economy has been stuck in neutral.
The estate tax and the alternative minimum tax would also go away under the plan.