On Wednesday, the White House outlined its new tax proposal, which leans heavily on tax cuts.
BA‘s Rommel Conclara speaks with a Fil-Am tax specialist in Daly City, who breaks down the good and bad regarding Trump’s tax plan.
This is the one page white house handout reporters received on Wednesday, during the tax plan announcement of the Trump administration.
While its critics call it too broad with minimal details, tax specialist Danny Raval says, despite some limitations, overall he is still satisfied with the President’s tax plan.
“For most of our kababayans, for most taxpayers, it’ll be less taxes to pay or more refund,” said Raval. “Some of us will have a lower tax rate from 25%, to maybe 10%. Who knows?”
Raval agrees with Trump’s plan to reduce the number of tax brackets, from seven to three, might be too much.
“No range yet has been discussed. There’s not that much details in this proposal. I think in order to affect most of us with the tax cuts, I believe five tax brackets is the better way of doing it.”
Raval also does not completely agree with Trump’s plan to repeal several taxes like the estate tax because he says it means lost revenue for the economy.
“I would prefer not to eliminate the estate tax probably just cut it down, as opposed to just taxing it again and maybe cut the rates. Right now, there’s $5 million in exemption for estate tax… so if you eliminate that the billionaires of the world wouldn’t have to pay any state income tax.”
While how small businesses would have more ability to pay their employees, or hire more due to Trump’s proposal to reduce their tax rate from 35 to 15 percent — he worries what else will get cut in order for this to happen.
“The biggest challenge for the US government is where do we get these funds that we gave out to the corporations, and to individuals to replenish some of our budgets for infrastructure, military, and welfare?”
Since the white house is talking about taxes, Raval, a Republican, joins in the calls for the President to release his own tax history.
“Donald Trump should also disclose his income tax and see where he is right now, because how do we know if he is biased, versus he is not biased… in terms of of this tax plan and these tax cuts? It is going to affect his empire? Of course it will, but hopefully it’s fair enough in terms of where we are headed.”