Donald Trump has presented the tax reform proposal that has planned for the United States. This is based on three pillars: cut to income tax, decrease in the company tax and deletion of the succession tax.
roughly , Donald Trump’s fiscal reform consists in reducing the tax burden on US companies. If this fiscal reform was approved, companies would reduce their 35% to 20% load, a slightly higher than 15% figure that promised in campaign.
particularities of Donald Trump’s fiscal reform
- Reduction of the tax rate of companies from 35% to 20%.
- Elimination of the Inheritance Tax.
- Decrease in Corporation Tax up to 20%.
- Reduction of rent taxes in three single sections (12%, 25%and 25%). Before there were seven sections. With this reform, the minimum is raised (currently by 10%) and the maximum is reduced (39%).
- Raise tax deductions to families who have children.
- Create a fiscal deduction for dependent people.
And how will the decrease in fiscal collection be compensated?
This fiscal cut would involve a notable tax reduction. In fact, some calculations speak of 5 billion dollars in 10 years. Now, it remains to be seen how it will supply the obtaining of this large amount of money if its tax reform becomes effective.
Without giving more details, Trump’s fiscal reform plan plans to eliminate “numerous exemptions” to balance reductions, without deepening them.
Trump’s fiscal reform: Who does it favor?
For his part, the Secretary of the Treasury, Steven Mnuchin, said that the main beneficiaries of the tax reform will be the members that form “the middle class”. However, Democratic leader Nancy Pelosi declared: “This is not a tax reform, it is a gift for the richest, paid by the middle class.” For his part, Chuck Schumer, a Democratic leader in the Senate, said that Donald Trump’s fiscal reform establishes “a fiscal relief for the richest.”
We will have to wait for more details about this fiscal reform plan for Donald Trump’s government. Until now, Donald Trump’s great decisions have stayed in a drawer. An example of this, are the elimination of the health program of the previous president, the Obamacare; in addition to the paralysis of gasoline renegotiation; or the non -construction (for now) of the famous wall between the United States and Mexico. Will the same thing happen with your tax reform plan?
will Trump’s tax reform affect Spain?
The United States is the preferred non -European destination of Spanish exports, due to continuous commercial relations between the two countries. In fact, the direct investment of US companies in our country was 336,000 million dollars. That investment generated 163,000 jobs . If the fiscal reform of Donald Trump is effective, could the Spanish startups and companies that want to invest in the United States benefit from it? It is still early to say it, since Trump’s tax reform is still in embryonic phase.
On the other hand, some experts point out that Spanish companies will not benefit from Trump’s tax reform, since it is mainly aimed at US companies.
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