Nearly everyone in the country would see changes under President Trump’s proposed tax code plan.
Creighton University Economist Ernie Goss says the plan calls for reducing the number of tax brackets and preserve certain deductions.
Goss says, “Doubling the exempted income, going from seven rates to three rates and eliminating these Christmas tree of deductions. We are going to go down to two deductions – that would home mortgage interest and charitable contributions and getting rid of deduction for state and local taxes.”
Goss says having many deductions is good for politicians, economists and lobbyists but not good for the economy and average Americans.
When it comes to lowering the corporate tax rate to 15%, Goss says that would be a huge boost to the economy.
Opponents say the changes would cause the deficit to increase before the effects of this plan would kick in. Goss agrees but says there one portion of the plan that is very “digestible” and could be implemented yet this summer. Goss says, “Cut the tax rate on earnings held overseas by U.S. corporations. That repatriation tax, taxes on repatriation earnings. That would bring in between $300 to $400-billion of income to the treasury at almost no cost to the U.S. economy.”
President Trump’s proposal would also lower the capital gains tax and repeal the inheritance tax.