Democrats Just Found a Major ‘Problem’ In Trump’s Tax Plan And Republicans Are Panicking
Another major problem with the Republican plan for tax reform is starting to get attention in Congress.
While President Donald Trump and his Republican allies in Congress tout their proposed tax plan as “good for small businesses,” Democrats have discovered a particular provision that is raising eyebrows, even among some Republicans.
This provision would ensure that people who own so-called pass-through businesses —like Donald Trump— would be taxed at no more than 25% on income from those businesses, unlike wages, which may currently be taxed at rates up to 39.6%.
A major problem with this proposal is that small business wouldn’t benefit at all. More than 80% of tax filers with small-business income are already taxed at rates of 25% or less, so only the wealthiest business owners, who currently face high tax brackets, would get a tax cut.
The president, who would surely contest the idea that his own businesses are small, would get a big tax break from this provision.
As noted by Business Insider, this tax break is not needed at all. It’s only there to benefit Donald Trump and his family.
There’s no really good way to put “guardrails” around the preferential tax rate for pass-through businesses. Fortunately, there is a simple solution: Kill Trump’s tax proposal.