Trump tax plan to face an uphill battle – ANZ
Analysts at ANZ note that the Trump tax plan includes a 20% corporate tax rate, a 25% tax rate for pass-through businesses and reduced 35% top income tax rate for individuals (as well as reducing the number of income tax brackets from seven to three).
“The infamous border adjustment tax is not part of the plan. The number of individual marginal tax brackets go from 7 to 3 or 4 (35%, 25% and 12%). The lowest rate is a hike from 10%! The challenges are twofold. Does it have bipartisan support (his own party is divided) and how can it be paid for without blowing out the deficit? A comprehensive overhaul has eluded policymakers for decades. This one will face an uphill battle.