Donald Trump is planning big tax cuts for businesses and individuals. Trump promised this his entire campaign, but new details from the administration suggest that these tax cuts may be the biggest the country has ever seen.
President Donald Trump’s tax reform plan will be the biggest tax cut and the largest tax reform in history, Treasury Secretary Steven Mnuchin said.
Mnuchin, speaking at an event Wednesday morning hosted by The Hill, said that Trump’s proposed plan would be released later in the day and would outline principles of tax reform that would hopefully turn into a bill.
“We had a very successful meeting last night, and I think it’s clear that the House, the Senate, and the administration are all on the same page that tax reform is a major priority to boost the economy, that the fundamental principles of making business tax competitive, we have a very uncompetitive system that’s hindering the economy and jobs,” Mnuchin said.
“We want to make business competitive,” the secretary continued, “and we want to simplify the tax system, lower taxes, and create economic growth so this is going to be the biggest tax cut and largest tax reform in the history of our country, and we are committed to seeing this through.”
Mnuchin also confirmed media reports saying that the corporate tax rate is going to be cut to 15 percent: “That is what the president said in the campaign. He thinks that’s absolutely critical to drive growth.”
“People talk about pass-throughs, what we think is important is small business, and we are committed that small businesses, owner operators will have the benefit of the business rate,” said Mnuchin. “What this is not going to be is a loophole to let rich people who should be paying higher rates pay 15 percent, this is going to be for small businesses that drive the economy, and they will have the benefit of this.”
Trump’s new tax plan isn’t entirely focused on business, though. Trump’s plan will also increase the amount of standard deductions individuals can claim when doing their taxes.
A piece of the proposed tax overhaul would nearly double the standard deductions that both individuals and families can claim on their returns, Fox News reported. Under the proposal, the tax cuts for individuals and married couples filing separately will increase from $6,300 to $12,600. The standard deduction for a married couple filing jointly will jump from $12,700 to approximately $24,000.
White House sources also said the plan would eliminate the marriage penalty.
In addition to raising deductions, the Trump administration will collapse the current seven-tier bracket system into just three tax brackets under the new plan, taxed at rates of 35 percent, 25 percent and 10 percent… this is slighlty different than Trump’s previously proposed tax rates were 33 percent, 25 percent and 12 percent.
Chief economic adviser Gary Cohn and Treasury Secretary Steve Mnuchin unveiled the first official details — printed on a single sheet of paper — of a plan Cohn called “the most significant tax reform legislation since 1986, and one of the biggest tax cuts in American history.”
The document is mostly a series of broad principles under three headings: Goals for Tax Reform, Individual Reform and Business Reform. But there are a series of specifics laid out, including:
- Would reduce seven tax brackets to three tax brackets: 10 percent, 25 percent and 35 percent. The previous top tax bracket was 39.6 percent.
- Doubles the standard deduction for a married couple to $24,000. This change also means more couples will no longer need to itemize deductions, making the process of filing taxes simpler.
- Repeal 3.8 percent ObamaCare tax “that hits small businesses and investment income.” The repeal of the Affordable Care Act tax comes as Republicans are trying to replace the law all together as part of a massive health care overhaul.
- Lowers business tax rate from 35 percent to 15 percent.
- Institutes “one-time tax on trillions of dollars held overseas.”
- Repeals the estate tax, also known as the “Death Tax,” which applies to the transfer of property of a deceased person.
- Repeals the Alternative Minimum Tax, which was enacted as a penalty on wealthy individuals.
ICYMI: Here's the #taxreform outline the Trump team just unveiled.
Read: https://t.co/p2AjDy33o2 pic.twitter.com/wamJtuVv1p
— Victoria Craig (@VictoriaCraig) April 26, 2017
Source: Free Beacon, Fox News
Not the trump supporter just the rich …suckers …again
Forget the “charity” deduction (I have control over that spending) & let us keep the “healthcare” deduction (I have no control over healthcare costs which are already more than my mortgage deduction). If someone has high medical expenses they should at least be able to deduct them from their income.
It off sets though. Standard goes from 12,600 to 24,600. So that will off set some of the other deductions. Me for one never used health care mileage etc as a deduction. Still always got back 6-12k from fed maybe a few hundred from state or nothing
Just wanted to say the biggest crooks are in the white house. Why haven’t they had a taxes been investigated by the IRS. Or are they afraid of the crooks. They are the only ones who get tax cuts. Not the poor or the people who live on pensions.