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

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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.


See the latest 2017 tax season deadlines and refund processing schedule

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.

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.

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.

{ 12 comments… read them below or add one }

Dawn Davison February 21

What does this mean for people on workers comp?

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Audrey Perry February 21

Will people on ssi receive a check

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Tommy T Guilliams February 22

I hope the fuck. Not, ya get a free one every month now

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Dick February 24

Damn boy, you mad if granny gets an extra check? But it’s cool when the federal reserve makes 9trillion in 8months off interests for borrowing us money? Its cool they do nothing for our countries infrastructure or economy? At least grandma would spend the money in her community! Or maybe they can use that money to bail out the big banks shoo they can reward the ceos for fucking failing at their job but they should get a quarter mil in bonuses.. And hey instead of the banks lending out the they got bailed out with to boost the economy let them buy out all the competition so their dick can go even farther down your throat. Then it already is. But yea i hope they don’t give grandma any more money that 455 $ a month is plenty for her to be ☺. Some people would rather see Rumsfeld doo a magic trick and make 2 TRILLION dollars go missing with no accountability then see 400 million spred out on a bunch of hungry single moms to feed her kids. Hahaha some of you idiots can really be influenced by your masters you almost thought somebody gave a f&*K what u think… ✌

Susan Boatright February 21

Will people on social Security receive the Stimulus check as we did in 2008?

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Tommy T Guilliams February 22

I hope if they are 65

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TR Cardiac February 24

Those of us on SS that are NOT 65 (i.e. disability) worked for our benefits, it’s WAY different than SSI.

Elisha February 17

When will we start receiving the stimulus checks

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Andy (Author) February 20

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.

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ruth February 1

will. we. get. a. stimulus. check. in. 2017.

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Shawanda Haynes February 10

How do you know? And how much will it be?

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Andy (Author) November 16

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?

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