Trump's tax bombshell is going to blow up Canada's competitiveness

President Trump to Release Tax Blueprint That Would Lower Corporate Tax Rate to 20%

It can take many hours of planning and record-keeping for a taxpayer to determine his or her "taxable income". Trump also plans to talk about eliminating loopholes and pushing against offshoring jobs.

But the blueprint does say lawmakers can add a fourth top rate above the 35% if they need to. Small businesses pay less.

What's the catch? It's apparently somewhere in the small print to be written later.

The proposal drew a swift, skeptical response from Senator Bob Corker, a leading Republican "fiscal hawk", who vowed not to vote for any federal tax package financed with borrowed money.

What's the largest personal stake a US president has ever had in legislation he signed into law? It must then be debated by the Republican-led congressional tax-writing committees.

Small caps, which absorb some of the highest U.S. tax rates, saw strong gains, while the Bloomberg Dollar Spot index rose 0.6% to the highest level since August. That's down from seven rates today: 10%, 15%, 25%, 28%, 33%, 25% and 39.6%.

The estate tax and the alternative minimum tax would also go away under the plan. It proposes tax cuts for wealthy Americans, businesses and the middle class while protecting deductions such as mortgage interest and charitable contributions. Some observers think the changes would be very good for him, his family and his businesses.

Under the proposal, typical middle-class families will have less income subject to federal tax. Republicans are counting on a surge of economic growth to pay for their tax plan and the Tax Policy Center analysis does not account for those "dynamic" effects.

The 25% cap on pass-through businesses would greatly benefit RIAs directly, since up to 75% of them are structured as such entities, Paul Auslander, director of financial planning at ProVise Management Group, tells the publication. This could add up to real benefits for many moderate and low income taxpayers. Remember that corporations don't actually pay corporate taxes; their customers do, in the form of higher prices. And a case can be made that there's a payoff in reorienting tax codes to reward investment and to discourage companies from sitting on profits.

The biggest tax windfall Trump hopes to secure for himself, however, is one he won't live to enjoy. This plan is likely to expand the deficit, although precise estimates are hard because details are lacking. "That's where the savings come in", he said. They could also cut spending to offset about $4 trillion in reduced revenue.

Calling his plan a "giant win for the American people", Trump derided the current tax system as a "relic" and a "colossal barrier" standing in the way of the nation's economic comeback.

And many people wouldn't get a tax cut at all. What's outrageous to me, obviously the Republicans control congress - how a Republican Congressperson from the state of the NY could be supporting efforts that drive a stake through the heart of their own district, is reprehensible to me. While there might be bipartisan support for some tax cuts, Democrats will resist some.