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A Washington analyst on the Trump tax plan

Here I link to an interesting piece on a Bloomberg blog by Albert Hunt, who offers an analysis of the Trump tax plan, which I discussed myself in an earlier post. Watch out for his discussion of the elimination of the personal exemption, a provision that would increase the tax bill of many people with relatively low taxable incomes. This regressive change contrasts with the proposed doubling of the standard deduction, which I mentioned in my previous post. (Trump is not committing either way on this provision.)

Hunt argues with three illustrations that the tax plan is not so good. He summarizes as follows:

Three illustrations make the point. Administration officials won’t say whether the personal exemption would be eliminated, hardly an arcane detail. They falsely suggest that the plan will increase taxes on some wealthy investors by eliminating a tax loophole used by executives of hedge funds and private-equity firms known as “carried interest.” And they rely on the dubious assumption that Congress will no longer allow state and local taxes to be deducted from federal taxes.


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