Details of the Trump administration's long-awaited tax reform plan are trickling in before a potential unveiling in Wednesday's speech, including cuts of the top tax bracket to 35 percent, the corporate tax rate to 20 percent, and doubling of the standard deduction to aid the middle class, according to an Axios report.
The plan was reportedly composed by the "Big Six" economic advisers to President Donald Trump: House Speaker Paul Ryan, R-Wis.; Senate Majority Leader Mitch McConnell, R-Ky.; Treasury Secretary Steven Mnuchin; Senate Finance Committee Chair Orrin Hatch, R-Utah; House Ways and Means Chair Kevin Brady, R-Texas; and the White House's Gary Cohn.
The most talked about aspect of Trump's tax reform has been the corporate tax rate, which he has publicly stated should be at 15 percent – perhaps to negotiate something closer to 20-25 percent – but Axios reported the debate will start, not end at 20 percent.
"That's going to be controversial, but it's not a deal-breaker I don't think," a source told Axios.
It is expected the tax-reform debate through Congress will take weeks, if not months, and will lead to tweaks to the plan along the way.
- Details of the "Big Six" tax reform include, according Axios' three sources:
- Cut the tax rate for sole proprietors and small businesses from 39.6 percent to 25 percent.
- Reduce the tax brackets from seven to three.
- Cut the tax rate for the wealthiest Americans from 39.6 percent to 35 percent.
- Cut the corporate tax rate from 35 percent to 20 percent.
- Double the standard deduction to aid the middle class and help simplify the tax reporting process.
© 2024 Newsmax. All rights reserved.