Proposed on April 26, 2017
The Trump Administration has issued a one-page plan to reform the tax system in America. The plan calls for the simplification of the tax code and the deepest cuts in tax rates paid by American families and businesses seen since the Reagan administration. More specifically, the plan calls for decreasing the number of tax brackets from seven to three (10%, 25%, and 35%). It calls for cutting the tax rate for all businesses to 15%. LEARN MORE
By cutting taxes so drastically the Trump tax plan also reduces the amount of revenue the government is able to take in through taxation. To begin, it has called for doubling the standard deduction rate. The head of Trump’s National Economic Council, Gary Cohn, said, “We are going to double the standard deduction so a married couple wouldn’t pay any taxes on the first $24,000 income they earn.” In addition, Trump’s plan calls for an elimination of the alternative minimum tax (ATM). This tax was put in place by Congress as a way to get wealthy people to pay taxes rather than use tax loopholes to avoid paying them. Furthermore, to aid the rich the Trump plan also calls for the removal of the estate tax – a tax on assets being transferred through a will (often used by the wealthy elites). All these proposed tax cuts, many studies have found, will add nearly 5.5 trillion dollars to the debt which could potentially lead to a slower economy due to stagnant wages. It remains to be seen whether Trump can translate his one-page tax plan into meaningful legislation that Congress will pass.
- Make Tax Fair –Their objective is to contribute to fair taxation. Support fair taxation, make a change.
- US Senate – Contact your local representatives to take a stance against this proposed legislation.
- US House of Representatives – Contact your local representatives to take a stance against this proposed legislation.
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