President Donald Trump proposed dramatic cuts in taxes Wednesday in his latest attempt to boost economic growth and bring jobs back to middle America.
The plan calls for a slash in individual tax rates, cutting the top rate from 39.6% to 35%. Sticking to his campaign promise, President Trump wants to reduce the number of brackets from seven to three.
During the campaign, Trump had originally called for those rates to be 10% 20% and 25%. He later adjusted his plan, calling for higher rates on par with House Republicans at 12%, 25% and 33%
The individual rates from Wednesday’s plan: 10%, 25% and 35%.
This latest proposal also calls for the end of the death tax. Finally.
This was one in which conservatives have long fought to end, as it’s completely unnecessary.
The new tax plan also calls for repeal of the alternative minimum tax, which would essentially make it harder for the rich to get away with paying less taxes.
Also there’s a doubling of standard deductions. More money in the pockets of taxpayers who itemize their deductions.
And then of course there’s a slash in the corporate tax rate. The new plan is to reduce the current rate of 35% down to 15%. That’s another promise from Trump’s campaign he has kept.
But there’s still questions to be answered from this new proposal.
What are the income levels for each tax bracket? And will this even pass Congress?
White House Framework
Goals For Tax Reform
- Grow the economy and create millions of jobs
- Simplify our burdensome tax code
- Provide tax relief to American families—especially middle-income families
- Lower the business tax rate from one of the highest in the world to one of the lowest
- Tax relief for American families, especially middle-income families:
- Reducing the 7 tax brackets to 3 tax brackets of 10%, 25% and 35%
- Doubling the standard deduction
- Providing tax relief for families with child and dependent care expenses
- Eliminate targeted tax breaks that mainly benefit the wealthiest taxpayers
- Protect the home ownership and charitable gift tax deductions
- Repeal the Alternative Minimum Tax
- Abolish the death tax
- Repeal the 3.8% Obamacare tax that hits small businesses and investment income
- 15% business tax rate
- Territorial tax system to level the playing field for American companies
- One-time tax on trillions of dollars held overseas
- Eliminate tax breaks for special interests
- Throughout the month of May, the Trump Administration will hold listening sessions with stakeholders to receive their input and will continue working with the House and Senate to develop the details of a plan that provides massive tax relief, creates jobs, and makes America more competitive—and can pass both chambers.
I’ve been waiting for the these tax cuts.
For far too long have the American people been bothered by our current burdensome tax system.
I think reducing the individual brackets to a mere three, as opposed to our current seven, and slashing the corporate tax will do a tremendous service for the country.
Don’t believe Obama, he presided over the weakest and most abysmal “recovery.” It’s been long overdue for our economy to turn around and unleash the growth that should’ve been spurred long ago.
My expectations for the Trump administration in 2017 was tax reform and healthcare reform. If the president manages to get those two done, I’m a happy camper. You can’t ask for the man to complete everything now!
If he were to fail on those two fronts, I’ll be disappointed and concerned, but won’t give up faith.
The House Freedom Caucus just endorsed the GOP’s latest attempt at repealing Obamacare, which is not only a big win for the White House, but also the grassroots.
If anything, the one-hundred day mark has lit a fire under President Trump.