Almost three-quarters of Americans believe the tax system favors the wealthy - and half of them believe President Trump's tax plan will help the rich even more, according to a new Washington Post-ABC News poll. As written, the plan would cut the tax rate for wealthy Americans and drop taxes for businesses. It doubles the standard deduction and increase the child tax credit.
Within moments of Trump's remarks, reports emerged that the Republican proposal will raise the standard individual deduction to $12,000 from its current rate of $6,350, and the deduction for a married couple to $24,000, up from $12,700.
A White House representative told Business Insider that Trump was referring to the lowest income tax rate.
The proposal calls for reducing the corporate tax rate to 20 percent from 35 percent, a shift that is meant to make American companies more competitive with their counterparts around the world.
"There's a lot of appetite on the Republican side" for repealing the estate tax, Rep. Tom Reed, R-N.Y., a member of the Ways and Means Committee, said before the meeting at the White House.
Trump has said the tax overhaul would provide tax relief to middle-class Americans, and the White House said that under the proposal typical middle-class families would have less of their income subject to federal income tax.
Republican lawmakers and the White House are expected to release a blueprint for their plans on Wednesday and Mr. Trump will speak in IN on the issue.
"The more Americans hear about tax reform, the more they want Congress to prioritize and pass meaningful pro-growth tax reform", said Corry Bliss, executive director of American Action Network, the group sponsoring the survey.
The rate is "going to be substantially lower so we bring jobs back into our country", Trump said.
The plan would maintain tax breaks for charitable giving and mortgage interest, and it also proposes amendments to the tax code that would benefit education and retirement. Some Senate Republicans are trying to tailor the tax cut so that it reduces revenue by only $1.5 trillion over 10 years. Support for major tax reform cuts across party lines, with 77 percent of Republicans, 70 percent of Independents, and 62 percent of Democrats agreeing that it's time for change. The GOP also is at odds over eliminating the federal deduction for state and local taxes.
The president is expected to say that his plan will restore a competitive advantage for USA businesses and create more jobs and higher wages for American workers. This would be a huge tax cut for most corporations, even if their tax breaks are severely limited.
But up to now, the drive for tax reform has been repeatedly delayed and Wednesday's plan was likely to be light on specifics. These businesses, partnerships and sole proprietorships whose profits "pass through" to their owners, would be taxed at a rate of 25 percent, not the individual rate of their owners, like under the current law.
Without releasing the tax brackets-the income level at which one tax rate ends and another begins-it's impossible to know who will win and who will lose from this change.
The plan would collapse the number of personal tax brackets from seven to three.
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