2017 and 2018 Trump Economic Stimulus, Tax Breaks and Credits for Individuals, Corporations and Investors

trumpWith Donald J. Trump now America’s 45th president many are now asking if he can bring around the economic change promised while on the campaign trail. A lot of people voted for him as a change agent and from an economic point of view at least are hoping he can bring back opportunity to millions of Americans displaced over the last decade following the 2008 financial crisis/recession and ongoing automation and offshoring of American jobs. President Obama did enact a large economic stimulus at the start of his Presidency to keep America puttering along following the Global financial crisis, but Americans maybe looking for even more under Trump and a Republican controlled Congress.

Here are some ideas being floated around from Trump’s official campaign proposals and I will update as more information comes to hand over the next few months. If any of these proposals do come to pass and are enacted by Congress, you will start seeing them towards the second half of 2017 and into 2018.

Infrastructure spending :  Trump has proposed a major boost – up to the tune of $1 Trillion over 10 years – in government spending on infrastructure construction and modernization projects covering roads, railways and airports. Because he is likely to face significant opposition from his own party with all this government spending (which will balloon the already massive national debt) he is proposing to use equity financing where private investors or companies put in the funding for these infrastructure projects in exchange for tax credits. Trump’s plan anticipates the cost of providing these equity tax credits would be recouped through new income-tax revenue from workers and organizations involved in these projects. Though there are a lot of assumptions and no formal numbers to back this up.

Health Insurance Tax Credits:  Trump and the house GOP have announced legislation – the American Health Care Act (ACHA) – to repeal and replace ObamaCare. It includes additional tax credits to offset the cost of purchasing health insurance – which won’t be compulsory and the Obamacare penalty will be removed. Refundable health care tax credits will range from $2,000 to $14,000 will be provided based on age, filing status and income levels. For those under 30 the credit would $2,000 a year and increasing steadily to $4,000 for those over 60. For families the credit can be as large as $14,000.These refundable tax credits are subject to annual income limits ($75,000 for individuals and $150,000 for married couples). See this article for more details and HSA account changes under TrumpCare.

Taxes : Trump has promised to simplify the personal and corporate tax code in his tax proposal. He wants to cut down the federal tax code to only have three federal tax rates/brackets versus the seven today. This includes cutting the top personal income tax rate for high income earners to 33% (from 39.6% today). To help lower-income earners he would raise the standard deduction while lowering the benefit of taking itemized deductions. He would propose repealing the alternative minimum tax (AMT) and the estate tax – which again help higher income earners.

2017 Stimulus Check: There have been a lot of rumors that the Trump administration will look to pay out another stimulus check to offset the pain from any border adjustment tax to price hikes, repealing Obamacare and cutting Medicare. This would impact lower income and social security recipients in particular. But to date there has been no official announcement of a 2017 stimulus check, despite some “fake news” articles that this is coming.  If a new economic stimulus check does materialize in the near term, it will be detailed in his tax package and infrastructure spending proposals due to come out in the coming months.

[Update] Based on Trump’s SOU speech to Congress there will be no new stimulus check in 2017. Given the administration’s preference for an increase in Defense spending (by ~$54 billion), they will defer for now the economic stimulus promised during Trump’s presidential campaign.

Earned Income Tax Credit and Child Care Deduction : A deduction for covering the average child care expense for lower to middle-income families will be put in place for children up to 13 years of age for average child care expense. The Trump Plan would also keep the Earned Income Tax Credit (EITC) for lower-income earners and provide an additional 7.65% rebate for eligible childcare expenses..

Dependent Care Savings Accounts (DCSAs) – These tax-free accounts could be established by all tax payers (regardless of income) for their dependents, including unborn children. Annual contributions will be limited to $2,000 (all sources) and when the child reaches 18 can be used for education expenses. Lower income earners will get a 50 percent match on parental contributions of up to $1,000 per year for these households.

Investment: To promote investing Trump would eliminate the 3.8 percent tax on net investment income on people with incomes (MAGI) of over $200,000 for single filers and $250,000 for married filers. The tax rates on long-term capital gains would be kept at the current 0%, 15% and 20%.

Small and Large Business/Corporations : A trump administration would look to cut the corporate business top tax rate to 15%, vs the top rate of 35% today. This will also include a one time 10% repatriation tax to encourage US companies to bring back funds and profits they have parked in overseas countries that have lower corporate tax rates.

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21 thoughts on “2017 and 2018 Trump Economic Stimulus, Tax Breaks and Credits for Individuals, Corporations and Investors”

  1. All these fing corporations, rape our people, for what, so they can make a huge profit!Well I say the corporations, owe the American people a hell of slot more and they should pay! My mom died, while trying to sue Owens corning, for making their asbestos blankets, back in the seventies. I tried to Persue the issue and was shut down at every turn. These corporate scumbags, sell us as chattel to foreign countries, in our very own name so. So I believe people are more than owed. My mom had advanced case of mesothelioma. Sarcoma lung. They told me unless it was the definitive cause of death, I couldn’t Persie. My mom had to be pumped with 40 gallons of water, every hour until she died! I believe we as a people are owed alot !

  2. I worked my granny ass off for 37 years. To them live on 876. A month???? Plus widowed so that’s my ONLY INCOME! Now disabled from the job I did all them years! I paid my damed taxes just like you! This ain’t no free money. Can’t wait till it’s your damned turn!! Yes we deserve the stimulus just like everyone else!!

  3. We need an economic stimulus check for 2017 the food pantry i we need an economic stimulus check for 2017 the food pantry and soup kitchen food is not that good there is no cash out here there is no spendable income we need a better Accounting in the office now

  4. I think tbe stimulates check should be for everybody nit just for the working people its unfair if only the working people get it so i think President Trump sgould redo the stimulates act

  5. The best thing Trump can do is send out stimulus checks. The ones I received in the past I spent quickly…on n on-essential items…which I would do again. Stimulus check stimulates the economy.

    • You know people get government checks for a reason. Usually what the person has already put into the pot. They aren’t free and what they get isn’t much. Be grateful you get to work and get to live however you want. I work my ass off and get nothing from this government, yet I don’t bitch about people on welfare or Ssi. People that do are usually people that have never been in situations where they had to rely on it, and until you do just keep that negative bullshit to yourself and be grateful you don’t have to survive off $600 total a month. Could you? I couldn’t. An American in need can take mine. Until I need it who gives a rats ass what other people get. All Americans should get one. Especially low income. They need it more and probably effect their life most.

      • no, not all americans should get it!! only the people who work and PAY TAXES should be entitled to it!! people need money to take care of they’re families, they need to get jobs and stop living off our tax payers money!!

        • I disagree… I worked 2 jobs for past 20 years and at age 39 with 3 kids I am forced to be on SSDI for past year due to Cancer. Now I have lost a couple thousand dollars a month income…own my own home and what I get from SSDI barely covers mortgage and basic utilities….I most certainly paid my taxes and ss over the years…So I should now be deemed not qualified is B.S.

    • There has been no announcement of a 2017 stimulus check, despite some “fake news” articles that this is coming. DJT still has to announce details about his tax package and infrastructure spending which is where we would see details of any 2017 or 2018 economic stimulus checks.

  6. See why Bill Gross (bond legend and investor) thinks none of this will work. The people who voted for Trump will be the ones that suffer the most.

    The Trumpian Fox has entered the Populist Henhouse, not so much by stealth but as a result of Middle America’s misinterpretation of what will make America great again. His tenure will be a short four years but is likely to be a damaging one for jobless and low-wage American voters. They were the force for Trump’s flipping the Midwest into a Republican Electoral College victory. But while the Fox promised jobs and to make America great again, his policies of greater defense and infrastructure spending combined with lower corporate taxes to invigorate the private sector continue to favor capital versus labor, markets versus wages, and is a continuation of the status quo.

    For example, Republican pleas for tax reform are centered around the argument that America has one of the highest corporate tax rates in the world at 35%. Not so. Of the S&P 500’s largest 50 corporations, the average tax rate (including state, local and foreign regulations) is 24%. U.S. corporations rank among the world’s most lightly, as opposed to heavily, taxed. Trump policies also appear to favor the repatriation of trillions of dollars of foreign profits at extremely low cost under the logic that the money will be spent for investment here in the U.S. Doubtful. The last time such a “pardon” was put into law in 2004, no noticeable pickup in investment took place. Of the $362 billion that earned a “tax holiday”, most went to dividends, corporate bonuses, and stock buybacks. Apple or any other large U.S. corporation can borrow the money they need here in the U.S. at historically low interest rates to fund investment. A few have, but over $500 billion annually in recent years has gone to the repurchase of corporate stock and the increase of earnings per share, instead of earnings and GDP growth. Why would they need to repatriate anything for investment in the real economy?

    • Is the stimulus check only for low incomeor us middle-class?
      honestly I don’t understand why some ppl get a refund of more than they had paid in? And ppl saying can you live on $600 a month, well sure I could if i had all my medical, foid, utilities paid for me by the government.


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