Friday, April 28, 2017
The components of the Trump tax plan resemble what was promised during his campaign, including specifics on how it would be paid for. There would be three tax brackets, corporate rates would drop from 35% to 15%, and there would be a one-time tax on the repatriation of corporate money held overseas. The plan would abolish the estate tax and AMT and do away with most personal deductions except for mortgage interest and charitable gifting. The question that has to be answered with any drastic tax action such as this: What happens if these drastic tax cuts don’t stimulate the economy and meet the anticipated growth target of 3%?