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A couple things. First, the President didn't present a plan - he presented 2 pages of bullet points, which might suffice on the campaign trail but doesn't qualify as the basis for legislation. I don't say this as a form of partisanship but of process. It was the last week of his first 100 days, and the appearance is that the White House wanted to get something into the public space before the weekend. From what I've read, it surprised many in the GOP because the White House had not laid any groundwork in the House or Senate.

Here's a great article from Barron's:

http://www.barrons.com/articles/the-trump-tax-plan-the-good-...

The cut in the corporate tax rate is likely a negotiating starting point, but requires sustained, astronomical growth over the next decade to avoid major deficits. I read somewhere last week we would need an average growth of 9% GDP over the next 10 years. In the first quarter of President Trump's term, GDP grew less than 1%.

The Congressional Budget Office warns the tax cuts are not revenue neutral, and the debt the "plan" would create if the widely ridiculed GDP growth projections do not pan out would be in the trillions. And while the removal of itemized deductions might benefit some low and medium income taxpayers, the ending of the Alternative Minimum Tax would offer significantly greater benefits from the wealthy.

Another consideration from the Barron's article is that the "plan" would disadvantage conventional corporations. Taxed on income as well as dividend/capital gains, their effective tax rate is around 32%, more than twice what small business S Corps would pay.

There is no question a small business can benefit from a reduction in taxes owed, but there's no guarantee that savings will be reinvested in the business, passed onto employees, or to customers. This has always been the problem with trickle-down economics - it assumes people will follow economic theory but the reality is often quite different.

Fuskie
Who thinks you can't look at the question of taxes by focusing on a single aspect of the equation but have to look at the whole picture, which is really, really, really difficult and the reason why comprehensive tax reform has been elusive for so long...

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Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
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