WEDNESDAY- Trump has announced his tax plan, a sharp overhaul of current tax codes, lowering the rates for individuals and businesses alike. Though it's yet to be negotiated with lawmakers, this one-page outline offers an initial feeling of how the administration plans to spur economic growth. The plan will double the standard deduction, eliminating taxes on the first $24,000 for a couple. This would incentivize people not to itemize tax returns but utilize the standard deduction, which saves taxpayers thousands of dollars and countless hours a year.The plan would leave in place deductions for mortgage interest and charitable contributions but would remove many itemized tax reductions and repeal the Estate and Alternative Minimum Taxes. The culmination of some of these cuts can save more than $1 trillion, and also showed support for changes to the tax code that would help families with child-care costs.
Steven T. Mnuchin, the Treasury secretary, claimed that this will be “the biggest tax cut and the largest tax reform in the history of our country,” and is designed to "create economic growth and jobs.” Though not specifying income levels, The plan also plans to replace the seven existing income tax brackets and install three new brackets, containing rates of 10 percent, 25 percent, and 35 percent.
The tax cuts are geared to lower taxes across the board, benefiting the upper, middle, and working classes. Though Democrats will be prepared to give a strong fight to the fight, Republicans insisted they were in agreement with the White House on a rewrite. The plan also lowers the tax rate on large corporations from 35% to 15%, and will encompass a broad range of firms, including hedge funds, real estate and large partnerships.
More news to follow in the days to come as more negotiations rewrite the current draft of the tax plan.