President Trump and GOP leaders are cutting the top tax rate from 39.6% to 35% , according to details leaked to Axios.
This will help small businesses as well because they pay the same tax rates as individuals. 35% is still too high, but it’s a start.
President Trump promised tax cuts on the campaign trail and he’s making good on that promise.
Axios reported the details according the three sources with knowledge of the plan:
- Top individual tax rate cut from 39.6 to 35. The current seven income tax brackets collapsed to three, as part of simplification. (Axios hasn’t obtained the other two rates.)
- Axios can confirm that the Big Six agreed to cut the corporate tax rate from 35 percent to 20 percent. That key detail leaked last night to the Washington Post. (Trump has said he wants the corporate rate to be 15 percent.)
- The Big Six framework is also expected to include guardrails to prevent wealthy people from artificially lowering their income taxes by rearranging their affairs to get taxed at the small business rate.
- We can confirm, too, WashPo’s reporting that Republicans plan to double the standard deduction — a boost for the middle class and a key component of simplification.
President Trump is expected to unveil this plan at a speech in Indiana on Wednesday.
The Democrats are reportedly pushing back on tax reform because they say the tax cuts are a break for the ‘wealthiest Americans’.
According to Axios, there are six Republican leaders working on the tax reform bill with President Trump and they are referred to as the ‘Big Six’:
The “Big Six” are House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury secretary Steven Mnuchin, White House economic adviser Gary Cohn, and the chairmen of the two tax-writing committees — Senate Finance Committee chairman Orrin Hatch and House Ways and Means chairman Kevin Brady.
President Trump must cut taxes not only to bring financial relief to hard working Americans, but his other campaign promises, repealing Obamacare and the border wall, have fallen flat.
Read the full report by Axios here.
SCOOP: Trump, GOP to cut top rate to 35 percent https://t.co/SU3xUG6T9D
— Jonathan Swan (@jonathanvswan) September 23, 2017
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