President Trump’s tax reform plan includes deep cuts in corporate taxes

“The White House unveiled in broad strokes its priorities for tax reform on Wednesday, taking a first step in delivering to investors the corporate tax cuts they’ve been banking on for months, even if there’s still a long way to go before the proposals become law,” Emily Stewart reports for TheStreet.

“President Trump proposed slashing the corporate tax rate to 15% from 35%, as anticipated, and instituting a one-time repatriation tax without specifying the amount,” Stewart reports. “He proposed taxing pass-through businesses at the corporate rate instead of the individual as a measure to help small businesses and called for the individual tax code to be cut down from seven brackets to three.”

“Treasury Secretary Steven Mnuchin said the Trump administration is seeking to make the U.S. corporate tax system the most competitive in the world,” Stewart reports. “‘We will have a massive tax cut for businesses and massive tax reform and simplification,'” he said, adding the White House believes it can boost the GDP to 3% or higher.”

“The Trump plan seeks to reduce the individual tax code to three brackets of 10%, 25% and 35% rates. It will double the standard deduction and eliminate deductions except for mortgages and charitable gifts.,” Stewart reports. “It also repeals the 3.8% Obamacare tax and eliminates the estate tax and alternative minimum tax.”

Read more in the full article here.

MacDailyNews Take: We’ll see where it all ends up (the corporate tax rate won’t end up being 15%, but it may end up being 20-25%, which is certainly better than the stifling 35% it is now).

As we’ve been saying for many years now, the U.S. corporate tax rate is way too high. Obviously.

Under the current U.S. corporate tax system, it would be very expensive to repatriate that cash. Unfortunately, the tax code has not kept up with the digital age. The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free flow of capital… Apple has always believed in the simple, not the complex. You can see it in our products and the way we conduct ourselves. It is in this spirit that we recommend a dramatic simplification of the corporate tax code. This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S. We make this recommendation with our eyes wide open, realizing this would likely increase Apple’s U.S. taxes. But we strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth.Apple CEO Tim Cook, May 21, 2013

SEE ALSO:
Apple could be primed for profit explosion under President Trump’s big tax cut – April 26, 2017
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes – March 17, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
After Apple’s blowout earnings, the Street looks toward ‘iPhone X’ and President Trump’s tax reforms – February 3, 2017
President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS – January 14, 2017
Exploring Apple’s tax situation under U.S. President Donald Trump – November 21, 2016
Morgan Stanley: Apple stands to benefit the most from President Trump’s corporate tax plans – November 11, 2016
Apple and U.S. President-elect Trump: Can a tax cut for overseas cash heal wounds? – November 10, 2016
Donald Trump plan calls for cuts in corporate taxes, personal income tax rates – August 9, 2016
Barring a tax holiday, Apple will need to raise over $50 billion in debt the next 2 years – July 15, 2016
Cramer: Apple’s Tim Cook is ‘patriotic’ on taxes – December 21, 2015
Apple CEO Tim Cook is absolutely right – and wrong – on U.S. corporate tax policy – December 20, 2015
Apple CEO calls corporate tax rap ‘total political crap’ – December 18, 2015
Apple avoids $59.2 billion U.S. tax bill – October 7, 2015
U.S. companies now have $2.1 trillion overseas to avoid corporate taxes – March 4, 2015

46 Comments

      1. I knew these entrenched RINO globalists would be a greater threat than any of the Bela Pelosi’s and Chuck Schemer’s to MAGA. The Demtärds are beat like red-headed step children, so they don’t really matter… it’s Traitor John McCain and his lovely wife, Graham Cracker, that are the problem.

          1. Snowflakes? I hear 10x more whining from the right than the left whenever one of their favorite ideas gets popped of favorite “facts” gets checked.

            All the “conservative” name calling comes from a place of ignorance, not people with actual principles which would make better arguments.

            I speak as neither a fan of the right nor left. Solutions don’t come in colors. Real progress involves balance and understanding issues at a deeper level level than slogans, where reality is more complex than political mouth-offs understand.

            1. Obviously you don’t watch CNN (CIA COUNTERFEIT NETWORK) where programming since the election has changed to the 24/7 HATE Trump channel. Full of whiners, snowflakes, paid protestors, illegals and she’ll schocked complaining Libtards everywhere. Same for Washed Post, MY Slimes and most major media outlets.

              Conservatives SOLVE PROBLEMS.

              Conservatives BUILD BUSINESSES.

              Conservatives RIGHT WRONGS for EVERYONE (just not exclusively the PC offenses like the Demtards).

              Conservatives STABILIZE the drugged, narcissist, excessive, irresponsible, hedonistic lifestyles when they get out of line.

              Many more, enough for now.

              Your 10X crowd is mythical. Go back to watching a movie …

            2. Ha! Fake news! The only thing Cons invented was ‘My pillow’. The libtards are driving the new 21 st century economy with tech innovation. Not much creating is being done in Appalachia America, except for meth labs.

  1. So deficit-bloating tax cuts aimed at global mega corporations are good? Make up your mind. The proposals sound great if you’re a multimillionaire or a numbskull, but almost no middle class American is going to benefit from the latest Goldman Sachs budget that Trump wants to push. Trickle down didn’t work in the past either — it created the massive debts on the books today.

    1. 35% tax rate on repatriated funds results in funds remaining abroad, and zero tax collected. This makes haters feel good because the big, mean, evil, nasty, ugly corporations are constrained. But it results in zero revenue AND low economic growth. Are we not smarter than that? Tax reform worked in the past. It will work now. It is long overdue. Obama had a chance to do tax reform. He blew it and middle-class, red-state-Americans (not rich Blue, coastal states) threw Obama’s party out of office for that failure. Tax reform now!

      1. http://www.finfacts.ie/Irish_finance_news/articleDetail.php?Pfizer-and-Apple-s-effective-tax-rates-misleading-fictions-384

        Inversion muddies the waters sufficiently to fool almost all armchair economists. Apple is just like any other large multinational corporation, always whining about being overtaxed while being proven over and over again to be the lowest taxed entities anywhere. The funds necessary to run the US government is primarily now coming from personal taxes, fees, and deficit spending. Proceeds from corporations and tariffs have fallen off to an absurdly small amount:

          1. Yes, this graphic shows clearly how the people whining about business taxes have been brainwashed by corporate propaganda. Corporations haven’t ever had it so good. The middle class worker keeps getting screwed.

        1. One, Apple isn’t doing “inversions” like Pfizer tried to do; two, there was all of one paragraph in that article about Apple, and that one paragraph was cribbed from the Financial Times, and told us nothing more than I already outlined in the previous tax article on Apple. The odd thing is that the article acts like booking US tax on foreign income is somehow nefarious. They’d probably also come up with a way of acting like not booking US tax on foreign income is nefarious. Either way, it seems, if they don’t understand why a company books tax, it must be nefarious, when they only need to ask a tax accountant or lawyer.

          Three, companies complain about double-taxation and being taxed more than their foreign competition. Let’s at least get the facts straight.

      2. I have to disagree. It is not the 35% that has companies keeping profits offshore. It is the tax benefits corporations have been able to swindle through their lobbyists. Change the laws, get rid of the corporate loopholes and payoff the deficit. Let the companies threaten to move, they won’t they know how good they actually have it.

      3. It’s only for the rich and will do NOTHING for anyone else. The rich have lots of money already and don’t need any cuts. The middle class and lower income need the cuts. Obama was balancing the budget. Trump will only cause the national debt to rise substantially by the trillions of dollars.

        1. “Obama was balancing the budget.”

          Close to losing it, clueless. You know nothing about balanced budgets under Obama or any other president for that matter. The same can be said regarding yearly budgets as an accumulation of the national “trillion dollar clock” DEFICIT since 1969!

          Next up you are going to tell us more fantasy talking points that Obama’s stimulus package did not cost taxpayers a dime, totally paid for, balanced the budget that year and the best of all — lowered the national debt.

          Why do I even bother …

    2. “So deficit-bloating tax cuts aimed at global mega corporations are good?”

      Short answer, yes! Read a great article earlier today that suggested Tim Cook should ponder Trump’s proposal the rest of the day and study how it would benefit Apple. Another analyst predicted it would boost Apple’s bottom line 32%. Wish I remembered where I read that piece because certainly would post the link. I read over a hundred articles a day … 😊

      “The proposals sound great if you’re a multimillionaire or a numbskull, but almost no middle class American is going to benefit from the latest Goldman Sachs budget that Trump wants to push.”

      Same old, same old, Demtard tripe and decades old talking points. When are going to get real? Educate yourself and spare us the parrot points.

      The facts: Around 50% of Americans do NOT PAY federal income tax. That would be the middle class and lower.

      The middle class has been getting tax relief for years (exception: Obamacare). Corporations? Not for decades.

      The lower corporate tax rate will incentivize bringing billions home to create jobs. Something you and your dogma talking dem buddies know nothing about.

      “Trickle down didn’t work in the past either — it created the massive debts on the books today.”

      What??? Unbelievable how clueless you are and totally ignorant of the facts. Your MSNBC/CNN binging is rotting your brain and blinding you to reality.

      Always ask this question when I read such robotic non-truths: Do you know the difference between deficits and national debt … Hmmm?

      Back to trickle down, would that free money coming from government courtesy of over-taxed taxpayers, or EARNED from the fruit of your labor courtesy of your employer? Which is it?

      I guess “trickle down” under eight years of Obama lowered the deficit? Answer: Resounding No! Obama was the most fiscally irresponsible President in history and doubled the national debt, more than ALL PRESIDENTS going back to George Washington — COMBINED. Think about that.

      Presently you have no clue what is going on with this issue. 🤔

      But you can turn it around …

      1. Now I see why things are so messed up. You hired a business man to run the country and his solution is to lower the price below cost when he has a huge debt and make it back on volume. There is a reason he is the King of bankruptcy. Now he is the King of the US along with his Royal family!

        1. You wanna talk messed up? List Obama accomplishments.

          You wanna talk debt that Dems are wetting themselves over the last few days? What was the national debt the day both Obama and Trump were sworn in … hmmm?

            1. You wanna dance around the truth, fine.

              Answer my question first now posted a second time: What was the national debt the day both Obama and Trump were sworn in … hmmm?

  2. I am sick and tired of the word taxes. They are contributions made by the people of a state for the greater good of that state. So how much do you want to cut contributions for the greater good of the US?

    1. Technically, contributions are voluntary, taxes are obligatory. How do you propose to increase the voluntary contributions for the good of the US so you can decrease the obligatory taxes?

      1. I appreciate technicalities. What I am trying to convey is that contributions/obligations are for the good of the society as a whole. The constitution reads We the People not I the People. This means that as a people we work together for the greater good not only in our deeds and actions but in our financial support for all. It is allot harder to justify cutting contributions/obligations for the good of the nation. We are either a society of the group or of the individual.

  3. What are taxes? They are contributions determined by certain criteria for the greater good of the country you live in. In a representative Government all the people are the government it is not some mystical entity. So how much do you want to lower the amount paid for the greater good of the US?

  4. The 15% tax rate in and of itself does not mean a whole lot as the quoted US rate and the effective rate are much different. Some companies that have been highly profitable paid no taxes and in fact got rebates from the IRS (General Electric comes to mind).

    The Trump document released today is at best an incomplete sketch. The non partisan Tax Foundation has a write up concerning it and here is the link:
    https://taxfoundation.org/trump-administration-tax-proposal/

    Here is the last paragraph:
    “All in all, the document does not present many details about the administration’s intentions regarding tax reform; in fact, it is less specific than the tax proposal released by the Trump campaign in September 2016. However, the document does indicate some of the administration’s central priorities for tax reform: large rate cuts for U.S. business income, substantial individual income tax reductions, and the curtailment of certain tax preferences.”

    Give the Trump Administration an incomplete.

    1. How about waiting until they are done to grade them?
      It’s just a negotiation starting point.
      (like claiming the wall would be in the budget to make the left feel as if they won something. Really, talk about TRANSPARENT!!!)

  5. Wow all that massive “reform” in the hope of getting to 3% growth? Talk about aiming low. The USA should be able to do 3% growth on its head and with one arm tied behind its back.

    There are more important systemic problems than shifting around the tax brackets to address.

    1. I don’t know where people get the idea that a mature economy with an aging population can sustain continuous growth substantially greater than the rate of population growth. Sure, you can cite a fraction of the total economy or a snapshot time period, but when you average out the boom and bust cycles, the USA gdp hasn’t grown faster than 3% for the last several decades.

      http://www.tradingeconomics.com/united-states/gdp-growth

      By the way, following the Bush financial meltdown in 2008-2009 and 1 year tied up in a healthcare reform that treats insurance companies far too well, Obama had no choice but to make due with an obstructionist congress that refused to write any tax reform or anything else. But by winding down the Bush wars and using diplomatic means to enhance trade, the gdp growth average under Obama — including the deep recession that he did not cause– was over 2% steady growth. That is damn good.

      Meanwhile, Trump has so pissed off US trading partners and roiled investors that 2017 Q1 growth has dramatically slowed to only 0.7% annualized growth rate. It would seem that there is a big difference between one page tax reform wish lusts and actual tax legislation. But Trump is too incompetent to work with his own party with in congress. Who expects Trump to preside ove his term a stronger gdp growth than Obama? I predict Trump will balloon the deficit in an attempt to goose the economy, which will only cause a deep correctional dip later. More instability from the least qualified president ever.

      1. Take off the rose colored glasses and review the TRUTH.

        Your cherry picking of GDP growth under Obama is NOT “Damn good” — it is deplorable and enemic at best as compared to presidents before him. You are a selective hit whore and your cheerleading spin is WORTHLESS.

        Trump inherited a train wreck mess from the most CLUELESS and MOST UNQUALIFIED president in the HISTORY of the United States.

        Spoon in his mouth community organizer and identity politics darling versus a self-made billionaire. NO CONTEST … 🇺🇸

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