The new tax reform plan released by the Trump Administration this week is particularly relevant to Americans living in Israel, many of whose tax returns were red-flagged in previous years for audits by the Internal Revenue Service for no reason other than the fact that they filed from Israel, according to an IRS source.
Trump's plan has the potential to provide big tax cuts to high-income families - unless you live in a state with high state and local taxes.
"The majority of the benefits go to high-income people", says Joe Rosenberg, a senior research associate at the Tax Policy Center, a nonpartisan think tank. But from what we can tell, the plan seems to be a windfall for the wealthiest Americans, with little evidence that it delivers on Trump's campaign promises.
Meanwhile, Trump's plan would cut the top corporate income tax rate from 35 percent to 15 percent.
"He understands that there are a lot people who work hard and feel like they're not getting ahead", said Gary Cohn, director of the White House National Economic Council.
"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.
AMP chief economist Shane Oliver has also said that if Australia is unable to compete with the USA tax rate, companies may decide to move their head office from Australia to the US. Treasury Secretary Steven Mnuchin said, "The tax plan will pay for itself with economic growth". If the tax cut applies to all business income reported on individual tax returns, it would be a huge benefit for many wealthy families. But the plan is similar in outline to Trump's campaign proposal, which would have given almost half its benefits to the wealthiest 1 percent of Americans, while middle-income households would have received barely 7 percent of the cuts.
In assessing whether his cuts might be the biggest ever, many pundits have pointed to President Ronald Reagan's tax overhaul in 1981, which reduced government revenue by 2.9 percent of GDP. People like him. Exactly like him.
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He added, "We are working with the House and Senate" on the repatriation rate,"but I will say it will be a very competitive rate that will bring back trillions of dollars".
"Certainly losing deductibility of state and local taxes would hurt states like New Jersey and NY that have high taxes", Christie told reporters Thursday after a speech to the Commerce and Industry Association of New Jersey.
But one particular change - the elimination of the ability to deduct state and local taxes - would hurt California more than nearly any other state.
Trump proposes to end most tax deductions, while preserving those for mortgage interest and charitable giving.
Steve Witkoff, a New York-based real estate developer and a friend of Trump, defended the proposed tax changes, arguing that they could foster an environment in which more Americans take the sort of financial risks that create jobs and feed prosperity.
An outline of the plan calls for tax relief for child care costs, but doesn't give much detail.
But the true effect of this tax will depend on how the Trump administration defines a small business owner.
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