President Trump will unveil his administration’s tax reform plan today in a speech in Indianapolis, Indiana. He’s expected to announce tax cuts on businesses and individuals.
The plan would slash the corporate tax rate to 20 percent from 35 percent, lower the top individual tax rate to 35 percent from 39.6 percent, repeal the estate tax, double the size of standard deductions for married couples and individuals and expand child tax credits.
Trump has repeatedly stated that he wants a 15 percent corporate tax rate. House Speaker Paul Ryan has argued for a 22.5 percent rate.
The plan is expected to include a tax cut for the country’s highest earners, despite Trump’s pledge that it would not benefit the wealthiest Americans. The administration, however, has said that the House and Senate committees crafting the legislation could choose to add another tax bracket above the 35 percent rate if necessary.
The president is expected to say that his plan will restore a competitive advantage for U.S. businesses and create more jobs and higher wages for American workers. Administration officials say the new framework will make the tax code simple, fair and easier to understand.
Any changes “should benefit loyal, hardworking Americans and their families,” according to Trump.
The president, who previewed his plan Tuesday with bipartisan members of the House Ways and Means Committee, said his plan is based on four principles: making the tax code simple and fair, cutting taxes “tremendously” for the middle class, lowering the tax rate for businesses and “bringing back trillions of dollars in wealth parked overseas.”
The White House is now looking for a legislative win after Republican leaders said Tuesday they would no longer hold a vote on their Obamacare replacement plan. Three members of the Senate said they wouldn’t approve the measure, effectively killing the bill.
Sen. Lindsey Graham, R-S.C., one of the sponsors of the legislation, vowed to return to health care after tax reform.
