President Trump’s Sweeping Tax Reform Poised to Put the U.S. Economy in ‘High Gear’
President Trump’s tax reform is a major step in the right direction for the working class base that elected him, and both Trump and the GOP are hard at work in search of the largest U.S. tax cuts ever.
Liberal blowhards like Chuck Schumer have attempted to dissuade the public by saying that the tax reform is the opposite of what Trump says it is, but ultimately, Chuck Schumer is anti-populism and a staunch anti-Trump lawmaker, so it comes as no surprise that he, and his allies, are trying to pull the wool over the eyes of the very Americans they claim to work for.
The President’s tax overhaul will be the first major reform since 1986, when Reagan introduced similarly important changes to the tax system.
The outline for the tax reform shows a call for a reduction of 20% for the corporate tax rate, lowering it by 15%. On top of this, the tax reform call for a rate of 25% for small businesses and sole proprietorships, which currently are taxed at the same rate as their owners.
Many view the President’s tax reform plan as dramatically as Reagan’s reforms, except Trump is most focused on on job growth, overall. People with modest incomes will also see a great benefit, as Trump plans to double the standard deduction, which would increase the amount of people that don’t have to pay income tax at all.
One of the most important things that Trump is presenting is the abolition of the estate tax. The “death tax”, as it is frequently called, affects individuals with estates that have a value exceeding $5.49 million.
There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!
— Donald J. Trump (@realDonaldTrump) October 23, 2017
Changes to the U.S. tax code result in a deficit increase of $1.5 trillion over a decade, but no more than that. Currently, the cuts Trump has proposed are seemingly going to cost more than that, the number, however, is not exactly clear. Some have suggested that capping the amount of people can put into their 401(k) plans, but the president shot down that suggestion in a tweet at the beginning of this week.
One of the suggestions has been to get rid of the federal deduction for state and local taxes. This idea, as well, has its road bumps as GOP lawmakers from higher-tax states are not necessarily comfortable with that idea.
A smaller corporate tax cut has also been suggested, along with a reversal on the estate tax, which could ultimately upset many other GOP members, including the President. Though there are obviously concerns ahead of the tax reform rollout, the President is steadfast in his commitment for the largest tax cut in U.S. history.