What Is Trumps View On Taxes?

The Tax-Residential Charge for the Trump Seven Springs Residential Estate

Employees and taxpayers who work in other lines of business must net their income and losses separately. The former president paid little-to-no income tax because of the special tax rules. The revelations show that the special write-offs available to business owners and other wealthy individuals can result in tax liabilities that are lower than average-income taxpayers.

The consulting fees seen throughout the returns may indicate a strategy to reduce business income and taxes. The amount of consulting fees paid to the daughter of the president raised several questions. As an employee of the Trump organization, she should not have been paid as a consultant.

There were additional issues at the Trump Seven Springs residential estate. Donald Trump deducted property tax of $2.2 million from his business expenses when he characterized the property as an investment. State and local tax deductions are subject to a ceiling of $10,000.

The Tax Act of 1978

The corporate tax rate was cut from 35% to 21% in the TCJA. The corporate cuts are permanent. Unless Congress acts to renew some or all of the provisions of the TCJA, the individual changes will be gone at the end of the year.

If you claim the increased standard deduction, you'll win on two levels. It will reduce your income more than in the past. The complicated process of itemizing can be avoided.

It will save you money if you no longer have to pay a tax advisor. The Child Tax Credit was increased by the TCJA. Parents who don't earn enough to pay taxes can claim a credit of up to $1,400.

The tax act made it more difficult to carry interest profits. The top income rate is 39.6%. Firms had to hold assets for a year to qualify for the lower rate.

The territorial tax system was included in the tax plan that was previously a worldwide taxation of companies operating abroad. Multinationals are taxed on foreign income. The state of Alaska gets half of that.

The Problem of Social Security: Trump's Position

President Trump doesn't buy into the idea that Social Security is an entitlement to Americans. Not all Americans will qualify for a retired-worker benefit or disability insurance protection because of their work and earnings history, meaning it's not an entitlement. It shouldn't be a surprise that Trump's position Social Security is that it shouldn't be changed directly.

The president favors bolstering the program to improve growth in the U.S. economy. The indirect approach to fixing Social Security will fail over the long run if fiscal policy is not used to prevent a slowdown in growth. Trump once believed that it would be a good idea to partially privatize Social Security, so that workers could have more control over how their benefits are invested.

A worker would control the portion of income that is Privatized from an investment perspective. Privatization was a popular idea in the 2000s, but it didn't get much support in Congress. Privatization doesn't solve Social Security's cash shortfall, and could actually make things worse by taking away funds from existing retirees by redirecting payroll tax revenue to their personal accounts.