After months of legislative defeats and a number of near-international incidents, President Trump is preparing to unveil the tax plan that his administration has been working on with other Republican leaders in secrecy over the last few weeks. The new plan: raise the lowest rate and lower the highest rate.
According to Axios, the plan, shepherded by Gary Cohn, Steve Mnuchin, and several Republican leaders, will be sold as a “populist tax cut,” though the President hasn’t signed off on the new plan completely just yet. He believes that the corporate tax rate is not low enough, and while the standard deduction is doubled, it’s still raising the lowest rate.
The plan calls for the number of tax brackets to fall from seven to three. Also: “The standard deduction would almost double to $12,000 for a single filer and $24,000 for married couples, meaning Trump can accurately argue that many more low income earners would pay no tax under his plan.”
Trump will unveil his new tax plan on Wednesday at a speech in Indiana, but he’s expected to not going into much detail. Supposedly, he’ll do so to “leav[e] plenty of negotiating room for the tax-writing committees in the House and Senate.” While some Republicans are crossing their fingers that the president doesn’t ad lib and goes along with this plan, they can probably rest easy knowing that Trump reportedly “gushed” about the plan while speaking about it with conservative leaders at the White House on Monday.
(Via Axios)