21% Corporate Rate, $20M Estate Tax Threshold, and Shift in Federal Spending-What’s at Stake?

Tax Policy Focus: Corporate Rates and Estate Thresholds

Shifting Federal Spending Priorities: Defense Boosts and Agency Cuts

According to gobankingrates.com Donald Trump intends to keep the corporate tax rate at 21% benefiting higher earners and companies. Additionally he aims to keep the current estate tax thresholds affecting only estates valued over $20 million. These proposals suggest a focus on sustaining tax advantages for businesses and wealthy individuals. He plans to extend the 2017 Tax Cuts and Jobs Act (TCJA), which reduced taxes for both individuals and businesses and significantly increased the standard deduction.

Trump’s potential second term could also see a significant shift in how federal tax dollars are allocated. One major area of change could be defense spending. During his first term Trump increased Pentagon spending from $606 billion to $723 billion a notable rise even when adjusted for inflation. This trend is expected to continue with more tax dollars going to defense. On the other hand Trump has proposed cutting federal funding for the Department of Education and the Department of the Interior. Eliminating these agencies would reduce investments in education and environmental protection. Moreover Trump aims to repeal the Affordable Care Act which could lead to fewer tax dollars supporting federal healthcare programs, although details of his replacement plan remain unspecified.

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21% Corporate Rate, $20M Estate Tax Threshold, and Shift in Federal Spending-What’s at Stake? (PHOTO: Bloomberg)

Education and Immigration Overhaul: New Academy, Loan Changes, and Border Security

Higher education and immigration are other areas where Trump’s policies might bring notable changes. He has suggested taxing large private university endowments to fund a new institution called the American Academy. This academy would offer credit for past coursework, helping students gain credentials for government and federal contractor jobs. In addition Trump might end student loan forgiveness programs initiated by the Biden administration shifting tax dollars away from such efforts. On immigration, Trump plans to renew his focus on strengthening border security and reducing illegal immigration. This could involve increased spending on building barriers and enhancing enforcement. Overall Trump’s strategy appears to prioritize defense and immigration control while reducing funding for social programs and regulatory agencies.

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