Trump Administration Proposes 'Significant' Tax Overhaul And Tax Cut Plan

Cornelia Mascio
Aprile 27, 2017

"Our objective is to make USA businesses the most competitive in the world", Mnuchin was reported to tell those assembled at the White House.

MNUCHIN: The president has no intention, the president has released plenty of information and I think has given more financial disclosure than anybody else. The Trump administration has ruffled GOP feathers on Capitol Hill by getting in the way of legislators' efforts to fix the tax system. The president so far has few legislative accomplishments, and a stalled tax plan would be another major blow after House Republicans failed to replace the Affordable Care Act.

The outlined changes to the tax code are the most concrete guidance so far on Trump's vision for spurring job growth and fulfilling his promise to help workers who have been left behind by an increasingly globalized economy.

They praised lower tax rates for families and businesses.

McConnell and Ryan issued the statement along with Senate Finance Committee Chairman Orrin Hatch and House Ways and Means Committee member Kevin Brady.

The White House says its goals for the "2017 Tax Reform for Economic Growth and American Jobs" plan is to "simplify our burdensome tax code" and "lower the business tax rate from one of the highest in the world to one of the lowest".

The administration wants to reduce the number of tax brackets to three from seven, but it has yet to determine the income levels for people who would be put in each bracket. The new tax rates would be 10 percent, 25 percent and 35 percent.

It also will eliminate a number of deductions used by the wealthiest Americans to scale back their dues, while doubling the standard deduction for married couples to $24,000.

On the other hand, the proposal would trim other deductions utilized by wealthier Americans. They did insist on three major perks for the wealthy, however ― reducing the tax rate on stocks, bonds and real estate investments; eliminating inheritance taxes for millionaire heirs and heiresses; and bringing down the tax rate on the largest corporations to less than half of what it is now.

"Under the Trump plan, we will have a massive tax cut for businesses", said Treasury Secretary Steve Mnuchin, saying that the corporate tax rate would be slashed to 15 percent under the plan.

Mnuchin gave that description during a speech in Washington on Wednesday morning.

Trump wants cuts for individuals and businesses, even as the government struggles with mounting debt.

Analysts say cutting the top corporate rate to 15 per cent could add more than $2 trillion to the deficit over a decade.

Administration officials acknowledge the plan is a broad brush outline, with specific details yet to be determined. The official wasn't authorized to publicly discuss the plan before Trump's announcement, and spoke on condition of anonymity.

US multinational corporations would also see a low one-time tax on overseas profits, and a territorial system will be implemented that means companies would only owe USA tax on what they earn domestically.

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