Trump's tax plan could cost an estimated $5.5 trillion

Trump's tax plan could cost an estimated $5.5 trillion

Trump's tax plan could cost an estimated $5.5 trillion

But that's not double.

Supporters say the tax proposals would stimulate the economy, encouraging Americans to buy more goods and companies to hire more workers. But it would eliminate many other deductions, including for property, state and local tax payments, a change that could badly hurt residents in states with higher tax rates - like NY.

Veronique de Rugy, senior research fellow at the Mercatuss Center at George Mason University, says the elimination of millions of people from the tax rolls would mean a big decline in federal revenue.

The other would give a tax break to anyone who sets aside up to $2,000 a year to cover costs associated with child care and elder care. Meanwhile, almost 75 percent of Americans think Trump should release his returns - something he repeatedly promised to do during the campaign.

Rep. Chris Collins, R-N.Y., said, "There's no question, when you lower the marginal rates, you're going to have to take away a lot of the deductions".

Ryan was diplomatic when asked about Trump's tax plan. "If you look at the ways this is going to benefit middle-class Americans, middle-income working Americans, and that is the concern of most Americans out there".

"The doubling of the standard deduction is also a pretty significant in that this will allow those folks that are taking the standard deduction to get twice as much", Ness said.

Until more details are known, it is hard to know exactly how some taxpayers will fare. The 40% tax now applies to a $5.5 million inheritance for individuals and $11 million for married couples.

U.S. Treasury Secretary Steven Mnuchin confirmed on Wednesday that the administration proposes to cut the corporate tax rate to 15 percent from 35 percent in its long-awaited tax plan. At the moment, Democrats are very reluctant to help the president achieve any legislative victories and are unlikely to side with Republicans to cut taxes for corporations.

Alternative Minimum Tax repeal: As he mentioned in his campaign, Trump wants to repeal the AMT. The White House plan would eliminate the estate tax, which mainly affects the top 10 percent of income earners. In reality, though, when you factor in those initial deductions along with other available tax credits, most estimates peg the effective tax rate on wealthy estates-that is the rate actually paid to the government-at closer to 19 percent.

[T] he plan would increase the standard deduction from $12,600 to $24,000 ($12,000 if single), and eliminate personal exemptions.

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