President Donald Trump declared Wednesday that his push to overhaul the nation’s tax system would “bring back Main Street by reducing the crushing tax burden”. (Aug. 30)
WASHINGTON – President Trump plans on Wednesday to unveil a plan to dramatically slash the corporate tax rate and collapse individual income tax brackets — and he’ll try to sell it by applying a hard lesson from the failing effort to repeal Obamacare: enlist Democrats.
in a speech in Indianapolis, Ind. on Wednesday, Trump will make his opening appeal to Americans for a plan that would lower the corporate rate to 20% and collapse the current individual tax brackets from seven to three: 15%, 25% and 35%, according to an activist who has seen the plan and requested anonymity. In a dinner last night with grassroots supporters, the president did not specify the income thresholds for these rates.
Currently the lowest tax rate is 10% and the highest is 39.6%. Another source who’s been briefed on the still-evolving plan said the lowest rate could be between 12% and 15%.
Trump said he has asked his staff to confirm that the plan would represent “the biggest tax cut in American history” by comparing the rates to the 1986 tax plan passed under former President Ronald Reagan, according to a dinner attendee.
While Trump wants to cut individual rates in most brackets, he said he is convinced that the best way to drive the U.S. gross domestic product to 4% or 5% growth is by lowering corporate rates, and he repeatedly mentioned to his dinner guests the competitive disadvantage of U.S. companies vis-a-vis countries like India, this source said.
“We’re the highest-taxed nation in the developed world, and we want to become one of the lowest, and that’s what we’ll be doing,” Trump said Tuesday before meeting with bipartisan members of the House tax-writing committee. “The jobs will start pouring in from all over the world coming back to our country,” he said.
Trump will make the announcement alongside Indiana Sen. Joe Donnelly, a Democrat planning to travel with the president, and in tandem with the plan’s release by Republican negotiators on Capitol Hill. Donnelly is considered one of the most endangered Democratic senators up for reelection in 2018; he will make the trip unless…