Trump’s dramatic tax reform plan revealed: President wants just three brackets and zero tax on couples’ first $24,000 – plus a massive slash to corporate rates
President Donald Trump and GOP leaders will announce a jointly agreed upon framework for tax reform that they say slashes rates for the middle class
Trump has said it will be the ‘largest tax cut’ in American history. He promotes the plan Wednesday in Indianapolis, Indiana
Plan proposes three rates of 12 percent, 25 percent and 35 percent – but also abolishes state tax deduction
Corporations will see their rates drop from 35 percent to 20 percent
White House is not dictating what income levels will qualify for each bracket
By Francesca Chambers, White House Correspondent
DailyMail.com
27 September 2017
The Trump administration is yanking the curtain off its federal tax proposal Wednesday.
President Donald Trump and GOP leaders are announcing a jointly-agreed framework for tax reform that they say slashes rates for the middle class.
Trump has said it will be the ‘largest tax cut’ in American history. He’ll promote the plan today in Indianapolis, Indiana.
Vice President Mike Pence governed Indiana until earlier this year, when he stepped into the role of VP. The Midwestern state is also home to Democratic Sen. Joe Donnelly, who’s catching a ride with Trump today on Air Force One.
A total overhaul of the tax code, the plan axes four of the existing tax brackets and leaves three rates of 12 percent, 25 percent and 35 percent. Corporations will see their rates drop to 20 percent.
‘The vision is to make it simpler,’ White House Counselor Kellyanne Conway said Wednesday morning on Fox and Friends.
Americans are currently taxed at rates of 10, 15, 25, 28, 33 ,35 and 39.6 percent.
They have the option to file a standard tax form or an itemized one.
‘The code currently favors the wealthy and privileged and the connected who can hire attorneys and accountants that can help them navigate and take advantage of these deductions and credits, many of which go away in the Donald Trump legislative plan for tax overhaul,’ Conway said Wednesday on Fox.
It is unclear what income levels will qualify for each bracket in the Trump plan, although Republicans are also proposing to double the standard deduction on taxable income.
The first $12,000 of income will not be taxed when filers choose not to itemize. The proposed standard deduction for joint filers is $24,000 annually.
But it will also abolish deductions for state and local tax, which could hit taxpayers in high-rate areas, including New York and California. The death tax is repealed, too.
Republicans are also proposing to increase the child tax credit to an unspecified amount.
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