stayontheblack.com

Business

President Trump will unveil tax-plan details Wednesday, White House says

Trump vows middle class tax help

I think there's very little benefit for people of wealth, ' Trump told reporters at the White House.

Asked whether the finalized plan in fact called for a rate of 15%, Trump said: "We'll see what happens". Such changes would significantly slash taxes for the top 1 percent of earners, according to Bloomberg.

It will be hard to tell who gets the tax cuts under the plan until lawmakers release a complete tax bill and independent analysts examine how the distribution of the tax burden differs from today's tax system.

Sen. Lindsey Graham, R-S.C., said passing tax reform is critical for the GOP. The tax-writing committees would have discretion to write anti-base-erosion measures.

US President Donald Trump on Tuesday said a forthcoming tax reform plan would cut taxes "tremendously" for the middle class, as Republican conservatives said they could accept big revenue losses in exchange for aggressive tax cuts for businesses. "I don't want to be disappointed by Congress, do you understand me?" the president said in a speech in Springfield, Mo., in late August.

He and other Republicans pitching the plan argue that the changes they're seeking would help the economy grow faster, which in turn would help pay for the tax cuts.

The transition to the new system would also include a one-time repatriation tax to encourage companies to bring offshore profits back to the United States.

Republicans have agreed on raising the bottom tax rate two percentage points to 12 percent in order to offset a huge tax cut for the top individual tax rate, down almost five points to 35 percent from 39.6 percent.

The GOP plan also calls for a "substantially higher" child tax credit, a new $500 credit for non-child dependents like aging parents and retaining unspecified incentives for higher education and retirement savings.

Passing a tax reform bill into law would be Trump's first major legislative achievement since taking office. Delivered at 11 a.m. Monday-Friday.

"It's not good for me, believe me", Trump said. That's led to what the plans says is "the justifiable feeling that the system is rigged against hardworking Americans". Trump is scheduled to speak at 3:20 p.m. Wednesday at an appearance in Indianapolis.

The standard deduction for individuals would double to $12,000 and to $24,000 for married couples.

Such economic assumptions have been questioned by Democrats, who say that the Trump tax plan will unfairly favor the wealthy and that providing them with tax cuts does not drive growth. 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.

The outline recommends repeal of the Alternative Minimum Tax and eliminates "most" itemized deductions, keeping the credits for home mortgage interest and charitable contributions.

Treasury Secretary Mnuchin and White House chief economic adviser Gary Cohn summarized the plan in a one-page summary Wednesday.

The US president's plan would lower corporate income tax rates, cut taxes for "pass-through" businesses - which tend to be small firms - reduce the top income tax rate for individual Americans and scrap some widely used tax breaks including one that benefits people in high-tax states dominated by Democrats.

President Trump is expected to announce the tax proposal in Indiana Wednesday afternoon.