Local Reaction to Trump tax proposal

It’s the first proposal to revamp the 70,000 page U.S. Tax Code since 1986. Corporate taxes would drop to 15 percent from 35 percent.

The president also wants to replace the current seven personal income tax brackets with three.

Based on the limited information released by the Trump administration, Alan Stark a Tax Partner at Hayashi Wayland, says their new tax proposal could stimulate the economy.

Stark consults for dozens of Central Coast businesses and says lower taxes would allow them to do more.

“Typically in a business, they’re going to reinvest that cash in something. ‘I’m going to buy equipment, I’m going to buy more product, I’m going to give raises to my employees’ ” Stark says. “[Businesses] are going to do something with that, doesn’t that stimulate the economy?”

But Stark says there is a flip side.

“What’s the ramification of lowering the rate from 35 to 15 [percent] and where’s that revenue going to come [from]?” Stark says.

Residents on the Central Coast also had mixed reactions.

“I think his plan’s not going to help anyone other than the top 10 percent” said Salinas resident Cecilia Sanchez.

Gordon Martins, another Salinas resident thinks differently.

“I’m happy with Mr. Trump because I’m tired of paying for everyone else.”

Still, with few details available, Stark says for now, we’ll have to wait and see.

“I’m all for stimulating the economy, and we’d all love tax rates to lower but, let’s give it a chance.” Stark says. “Let’s just see what the plan is instead of jumping on it and saying this either will work or won’t work.”

The Trump administration will meet with the House and Senate in the coming weeks to hash out additional details of the proposed plan.