President Donald Trump and congressional Republicans are expected to roll out a wide-ranging plan to cut taxes for individuals and corporations, simplify the tax system, and double the standard deduction used by most Americans.
WASHINGTON (CBSNewYork/AP) — President Donald Trump and congressional Republicans are expected to roll out a wide-ranging plan to cut taxes for individuals and corporations, simplify the tax system, and double the standard deduction used by most Americans.
In a document obtained by The Associated Press on Wednesday, their outline a blueprint for almost doubling the standard deduction for married taxpayers filing jointly to $24,000, and $12,000 for individuals.
The plan calls for cutting the corporate tax rate from 35 percent to 20 percent. Trump had previously said he wanted a 15 percent rate for corporations, but House Speaker Paul Ryan has called that impractically low and has said it would risk adding to the soaring $20 trillion national debt.
The GOP proposal also calls for reducing the number of tax brackets from seven to three with a surcharge on the wealthiest Americans.
The plan also leaves intact the deduction for mortgage interest and charitable deductions.
The White House and Republicans plan a formal roll out later Wednesday, when the president outlines his overhaul plan at the Indiana State Fairgrounds in Indianapolis.
Months in the making, the plan meets a political imperative for Republicans to deliver an overhaul of the U. S. tax code after the failure of the health care repeal.
The tax overhaul plan assembled by the White House and GOP leaders aims at the first major revamp of the tax system in three decades. It would deliver on a major Trump campaign pledge.
The goal, the architects say, is a simpler tax code that would spur economic growth and make U. S. companies more competitive with overseas rivals. Delivering on the top legislative goal will be crucial for Republicans intent on holding onto their congressional majorities in next year’s midterm elections.
(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
