There has been some inaccurate reporting on this in the media. Here it is from the horse’s mouth.
- 15% top rate on business income
- 15% top rate on capital gains & dividends
- 25% top rate on other income
Add in some ubiquitous simplification, and that’s the basic Trump tax plan. Significant cuts. Hooray. But don’t start celebrating yet.
Right now it’s hard to read whether it will get through Congress. Donald Trump was endorsed by only a single Republican Senator and a handful of Congressmen. He was certainly not the darling of establishment Republicans. Plus, his ‘Drain The Swamp’ rhetoric was aimed at Incumbents of both parties. They generally think pretty highly of themselves and will not take those insults lightly. It is not inconceivable that a block of dissident Republicans could vote with the Democrats to thwart implementation of Trump’s tax plan. Or any other plan he may propose.
That would almost certainly be career suicide, but given the philosophical differences, who knows? Time will tell. Trump is apparently aware of that because he appears to be making appointments designed to appease dissidents in his own party. But it is almost certain we won’t recognize any tax bill that makes its way all the way through Congress. There’s still a long row to hoe.
I am starting on the high optimistic end. Right my odds on getting Trump’s Tax Plan through Congress basically intact … 75%. However, my crystal ball is still malfunctioning, so don’t bet these odds.
Updates forthcoming as events unfold.