WASHINGTON ― President Donald Trump plans to unveil Wednesday what the White House is calling a "middle-class" tax cut but which at this point cuts taxes only for business owners and the wealthy.
If the GOP-controlled Congress passes the plan, it would be the first major overhaul of the USA tax code in three decades. "It's a refreshing change from our current outdated tax code, which for too long hasn't worked for many Americans".
Many foreign companies avoid doing business in the US, or leave American markets quickly, the president said, because competitor nations can attract corporations with lower tax rates than those in the "punitive tax system" in the United States. It will seek to simplify the tax system by reducing the number of income tax brackets from seven to three. Many Republican lawmakers have said 15 percent is unrealistic, and they instead proposed numbers in the low- to mid-20s. Tax credits for families with children would be increased, and the standard deduction applicable to all Americans would be doubled in some cases.
But it also omits some key details that will have to be fleshed out as the tax-writing committees work to craft actual legislation from the principles. The committees will also develop additional reforms to improve the efficiency and effectiveness of tax laws and to achieve the framework's goals. "A miracle for the middle class, the working person". There are still many questions left unanswered, a factor that seemingly comes standard with policy proposals these days.
The process of developing today's blueprint was led by six members of Congress and the Trump administration. Pence was expected to attend. We believe President Trump's tax proposal will do just that.
"With significant and meaningful tax reform and relief, we will create a fairer system that levels the playing field and extends economic opportunities to American workers, small businesses, and middle-income families", it adds.
He further raised concerns that the Republican plan would "explode our nation's deficit", arguing that economists on both sides of the political aisle agree that tax cuts do not pay for themselves. So a married couple up to $24,000 can spend their money on their family, on their children, what they have to do.
Lobbyists said they did not expect the framework to offer many details about eliminating tax loopholes and deductions or on how to raise new federal revenue to offset the proposed tax cuts. Under the current worldwide system, USA multinational corporations pay domestic tax on foreign earnings, which creates a competitive disadvantage for them.