Trump pro­motes ‘gi­ant, beau­ti­ful’ tax plan

The Republican Herald - - NATION/WORLD - By Dar­lene Superville

WASH­ING­TON — Pres­i­dent Don­ald Trump said Fri­day that the cen­ter­piece of his plan to help Amer­i­can busi­nesses and work­ers “thrive, com­pete and grow” is a “gi­ant, beau­ti­ful, mas­sive, the big­gest ever in our coun­try, tax cut.”

Trump and con­gres­sional Repub­li­cans un­veiled the broad out­lines of the tax plan ear­lier this week.

“My ad­min­is­tra­tion is work­ing ev­ery day to lift the bur­den on com­pa­nies and work­ers so you can thrive, com­pete and grow,” Trump said in a speech to the Na­tional As­so­ci­a­tion of Man­u­fac­tur­ers. He said the tax cut plan was a core el­e­ment.

The nearly $6 tril­lion plan sketched out this week by Trump and other of­fi­cials would deeply re­duce taxes for cor­po­ra­tions, sim­plify tax brack­ets and nearly dou­ble the stan­dard de­duc­tion used by most tax fil­ers. But many de­tails re­main to be fleshed out.

In the re­marks, Trump high­lighted a pro­vi­sion of the plan that would al­low busi­nesses for the next five years to write off the full cost of new equip­ment in the year it’s pur­chased. Trump said that pro­posal alone will en­cour­age com­pa­nies to in­vest and cre­ate jobs.

Un­der the broader pro­posal, cor­po­ra­tions would see their top tax rate cut from 35 per­cent to 20 per­cent. Seven per­sonal tax brack­ets would be re­duced to three: 12 per­cent, 25 per­cent and 35 per­cent. But the in­for­ma­tion re­leased didn’t in­clude the in­come lev­els ap­plied to the rates, mak­ing it dif­fi­cult to know how a typ­i­cal fam­ily’s tax bill may be af­fected.

Trump said a 20 per­cent cor­po­rate tax rate will be the low­est top mar­ginal in­come tax rate for small- and medium-sized busi­nesses in more than 80 years.

“It will be rocket fuel for our econ­omy,” he said.

The Repub­li­can tax plan also rec­om­mends a sur­charge for the very wealthy. The stan­dard de­duc­tion would nearly dou­ble to $12,000 for in­di­vid­u­als and $24,000 for fam­i­lies, ba­si­cally in­creas­ing the amount of per­sonal in­come that would not be taxed. De­duc­tions for mort­gage in­ter­est and char­i­ta­ble giv­ing would re­main, but the plan seeks to end most other item­ized de­duc­tions.

Mean­while, Se­nate Repub­li­cans un­veiled a bud­get plan Fri­day that lays the ground­work for over­haul­ing the tax code. The House and Se­nate must pass the blueprint be­fore law mak­ers can tackle the still-de­velop ing tax bill.

The Se­nate Bud­get Com­mit­tee re­lease comes be­fore a com­mit­tee vote next week. A com­pan­ion House mea­sure is headed for a floor vote next week, too.

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