Trump’s Tax Plan to Include Large Increase in Personal Deductions
President Trump’s tax plan calls for a sizable increase to the standard deduction Americans can take when filing taxes, potentially allowing taxpayers to keep more of their income – to the tune of a couple thousand dollars, White House sources told Fox News.
A piece of the proposed tax overhaul would nearly double the standard deductions that both individuals and families can claim on their returns, Fox News reported. Under the proposal, the tax cuts for individuals and married couples filing separately will increase from $6,300 to $12,600. The standard deduction for a married couple filing jointly will jump from $12,700 to approximately $24,000.
Demonrats and RINOs will fight the plan.
White House sources also said the plan would eliminate the marriage penalty.
Also, the Trump administration is expected to slash tax rates for individuals and simplify the tax code, including a reduction in the number of brackets to either three or four.
Trump’s previously proposed individual tax reform involved collapsing the current seven-tier bracket system into just three brackets; those who make less than $75,000 would pay 12%, Americans with earnings between $75,000-$225,000 would pay 25% and workers with incomes of more than $225,000 would pay 33%.
The president has promised the impending overhaul will be “massive” and “sweeping.”
On Wednesday morning, U.S. Treasury Secretary Steven Mnuchin confirmed reports the administration intends to cut the corporate tax rate from 35%-15% during a conference at The Hill’s Newsmaker’s Series. The 20 percentage point cut would be the largest reduction to the corporate tax rate in history.
Full details of the tax plan are expected to be released Wednesday afternoon.