On Thursday the Senate unveiled their own tax reform plan for the U.S. that differs from the House tax plan and contains a delay of the U.S. corporate tax until 2019 while retaining the number of tax brackets at 7 instead of reducing them to 4 under the House tax plan.
Some of the other key differences between the tax plans include the home mortgage interest deduction.
The Senate version makes no changes with the mortgage deduction whereas the House plan limits the deduction to existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000.
The state and local tax deduction, which remains popular in high density states such as California and New York, is eliminated in the Senate tax plan but under the House tax plan the limit for the deduction is set at $10,000.
The estate tax exemption that impacts wealthiest Americans increases to $11 million under the House plan, up from $5.49 million, and is entirely repealed after 6 years but the Senate tax plan follows the House model by capping the exemption at $11 million but does not phase it out after 6 years.
Trump Speaks Out Against Unfair Trade Imbalance At APEC Summit In Vietnam
Speaking at the Asia-Pacific Economic Cooperation, President Trump said that he will always put America first and claimed that for many years the U.S. systematically opened up their economy with few conditions while lowering tariffs and trade barriers and allowing international goods to flow freely into the country while other countries didn’t open their markets to us.
President Trump said that he doesn’t blame China or any other country for “taking advantage of the U.S.” and wishes his previous administration would have done something about it.
During the past year, President Trump removed the U.S. from the Trans-Pacific Partnership (TPP), a trade agreement with mostly Asian countries and also threatened to pull the U.S. out of the North American Free Trade Agreement (NAFTA).
U.S. Secretary of State Rex Tillerson said yesterday in Beijing during a press briefing that during their discussions, the U.S. Trade Representative went over the history of U.S.-China trade imbalances from the time that China joined the WTO.
The U.S. goods trade deficit with China reached $347 billion in 2016, according to the Office of the U.S. Trade Representative. China was the United States’ 3rd largest goods export market in 2016.
Tillerson was questioned about President Trump’s refusal to blame China for the trade imbalance and said that “we have to work through this together” concerning U.S. trade issues with China.
Tillerson explained “the President was simply saying, look, previous administrations have kind of left this trade door open.”
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