The White House unveiled a sweeping new tax reform plan today, outlining dramatic cuts in federal taxes for businesses and simplifying rules for individuals.
The proposal is a one-page outline — key details are left incomplete — but it presents an initial offer to begin negotiations with lawmakers, as White House officials think reworking the tax code is one of their biggest priorities to boost economic growth.
The plan was unveiled at the White House by Treasury Secretary Steve Mnuchin and Trump economic adviser Gary Cohn.
Mnuchin called the proposals “core principles” that would be worked on with Congress to produce a bill that can be passed. He said the plan would pay for itself through economic growth, and by reducing tax deductions and closing loopholes.
“Our objective is to make U.S. businesses the most competitive in the world,” he said. “The president is determined to unleash economic growth for businesses.”
Cohn said the plan marks “one of the biggest tax cuts” in U.S. history. “We have a once-in-a-generation opportunity to do something big and important on taxes,” he said.
The current federal corporate tax rate ranges from 15 percent to 35 percent, according to the Government Accountability Office. The new plan would consolidate three tax brackets for individuals – 10 percent, 25 percent and 35 percent. It also doubles the standard deduction, meaning that a married couple would pay no taxes on the first $24,000 they earn. The current individual tax system has seven brackets, spiking at a rate just shy of 40 percent.
The plan faces an uphill climb in Congress, where Republicans must win some Democratic cooperation to bring the plan to a vote in the U.S. Senate.
