President Donald Trump on Tuesday revealed that the Republican tax reform plan will include a near doubling of the standard deduction for both individuals and families. A much larger standard deduction and child tax credit.
President Trump meets at the White House with a bipartisan group of lawmakers about tax reform. The administration, however, has said that the House and Senate committees crafting the legislation could choose to add another tax bracket above the 35 percent rate if necessary.
The tax reform plan would decrease the current seven personal tax brackets to three - 12, 25 and 35 percent - and almost doubles the standard deduction.
Trump won't go into great detail when he talks about the tax plan tomorrow in IN, leaving plenty of negotiating room for the tax-writing committees in the House and Senate.
Trump and his Republican allies made completing a tax overhaul in 2017 a top promise of the 2016 election campaign and are under mounting pressure to finish the job since the failure of the latest Republican effort to overturn the Obamacare healthcare law.
In the Harvard Center for American Politics and Harris survey released Friday, 89 percent of voters said they support tax reform, while 68 percent said taxes are too high.
Trump plans a trip to Indiana Wednesday for a speech on tax issues, a person familiar with the planning said. He says it's time for the nation to fight for American workers.More news: Tehran Unveils 2000 Km-Range Ballistic Missile Which Can Carry Several Warheads
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The deductions for mortgage interest and charitable contributions would be preserved, but could be scaled back. The middle-class tax cut that Trump has been talking about is a lie.
Trump also denies the plan unveiled by the White House and congressional Republicans Wednesday would benefit the wealthy. They proposed scrapping the deduction for the amount a taxpayer pays in state and local taxes, which could hurt people in high-tax states including California and NY that tend to vote Democratic.
Earlier Sunday, Treasury Secretary Steven Mnuchin said in a television interview the plan "creates a middle-income tax cut, it makes businesses competitive and it creates jobs".
"As it seems, it favors the wealthy and doesn't do much if anything for the poor and the middle class". An agreement was reached in the Senate to pass a $1.5 trillion budget plan, which is necessary to move on to tax reform. Overall, 35 percent of all men support Trump on taxes but just 22 percent of women do. These businesses don't pay the corporate rate, rather their owners pay taxes on their share of the profits from the business at their own personal rate, which now will be lowered to 35 percent under the Trump plan.
A comprehensive tax overhaul has eluded lawmakers for decades.
"I see us as having the opportunity to fulfill our constitutional role of writing tax reform", House Ways and Means Committee Chairman Kevin Brady, R-The Woodlands, said. It will be left to Congress to create safeguards that prevent wealthy individuals from incorporating as pass-through businesses, which would tax their income at a lower rate.
Republican senators on opposing sides of the deficit debate have tentatively agreed on a plan for $1.5 trillion in tax cuts.