Last week top officials in the Trump Administration released their proposal for comprehensive tax reform, calling it the "biggest tax cut in US history." The plan is designed to serve as the starting point as Congress and the Administration work to pass a comprehensive tax reform package this year. Highlights of the plan include:
A full tax repeal of the death tax. During the press briefing announcing the tax package, one reporter asked if the White House proposal repealed the death tax immediately or if the tax would be phased out over a period of time. National Economic Council Director Gary Cohn responded that right now, the plan would eliminate the death tax immediately upon enactment.
It is similar to the House GOP Blueprint for tax reform, but does not include the border-adjustment tax which paid for a number of reforms in the House proposal by imposing a new tax on imports.
The plan lowers the tax rate to 15 percent for corporations, small businesses and partnerships of all sizes, and restores a 20 percent rate on capital gains.
On the individual side, it proposes condensing the existing seven income-tax rates to just three, cutting the individual top rate to 35 percent from 39.6 percent. The plan also repeals the alternative minimum tax and would end a 3.8 percent net investment income tax that applies only to individuals who earn more than $200,000 a year.
Treasury Secretary Steven Mnuchin stated, "We are determined to move as fast as we can and get this done this year." Throughout the month of May the Administration will hold stakeholder listening sessions and will continue working with House and Senate leadership to develop a detailed plan that can pass both chambers of Congress.
Moving forward, NCBA and CCA will continue to engage with the Administration and lawmakers on Capitol Hill to ensure that any comprehensive tax reform package includes a full, permanent repeal of the death tax. We will also work to safeguard provisions in the tax code which currently help to ease the financial challenges facing US livestock producers (stepped-up basis, cash accounting, like-kind exchanges, tax deductions for interest expense, etc).
Monday, May 8, 2017
Cattlemen's groups break down Trump's tax package
Ranchers' groups are offering an analysis of President Donald Trump's tax reform proposal. This is from a legislative bulletin published by the California Cattlemen's Association. The analysis was mainly produced by the National Cattlemen's Beef Association.