Trump Promises Big Tax Cut for Middle Class
WASHINGTON (AP) — President Donald Trump vowed to deliver on a major tax cut for middle-class Americans on Tuesday as the White House and congressional leaders prepared to release details on a tax overhaul proposal that would slash the corporate rate and simplify the nation’s tax code.
Trump met with Republicans and Democrats from the tax-writing House Ways and Means Committee at the White House, telling reporters he would be releasing a “very comprehensive, very detailed report” on Wednesday that would offer the framework for his top legislative agenda.
“We will cut taxes tremendously for the middle-class. Not just a little bit but tremendously,” Trump said. He predicted jobs “will be coming back in because we have a non-competitive tax structure right now and we’re going to go super competitive.”
The president and congressional leaders were putting the final touches on plans for the first major overhaul to the tax system in three decades, a major Trump campaign pledge that the White House hopes will give Trump a sorely needed legislative achievement.
The plan would likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, said people familiar with the plan. They spoke on condition of anonymity ahead of a formal announcement.
In addition, the top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said. It will seek to simplify the tax system by reducing the number of income tax brackets from seven to three.
Trump has 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 president said they would be announcing the specific rates on Wednesday.
Trump said some of the components included doubling the standard deduction used by families and increasing the child care tax credit. He said the majority of Americans would be able to file their taxes on a single page. “We must make our tax code simple and fair. It’s too complicated,” Trump said.
He sat with several members of the House Ways and Means Committee, including its chairman, Rep. Kevin Brady, R-Texas, and the committee’s top Democrat, Rep. Richard Neal of Massachusetts.
Vice President Mike Pence, Treasury Secretary Steve Mnuchin and White House economic adviser Gary Cohn also attended the meeting. All three are expected to play a major role in the administration’s push to overhaul the system.