Trump releases 100-day plan setting out tax reform
President Trump has released his 100-day action plan to ‘make America great again’ after being inaugurated as the 45th president by cutting corporation tax to 15% and simplifying tax rates for individual taxpayers
23 Jan 2017
In his plan, one of the tax reliefs Trump sets out to introduce is the Middle Class Tax Relief and Simplification Act. This relief is designed to grow the economy by 4% each year as well as create 25 million jobs through tax reduction and simplification.
The largest tax reduction will be for the middle class, with a middle class family with two children receiving a 35% tax cut.
Tax brackets will be cut from seven to three and tax forms will be simplified. The corporate tax rate will also be lowered from 35% to 15%.
Tax experts from Deloitte said: 'Both Trump and the House Republicans would condense the individual tax rates to three brackets of 12, 25 and 33% (from the current-law seven brackets with a top rate of 39.6%). They both propose to repeal the AMT, the 3.8% Net Investment Income tax, and the estate and gift tax.'
The new President’s plan also establishes the End of Offshoring Act which introduces tariffs to discourage companies from moving overseas and shipping their products back to the US tax free.
Another act is the American Energy and Infrastructure Act which aims to leverage public-private partnerships and private investments through tax incentives to spur $1 trillion in infrastructure investment over the next ten years.
Finally, Trump plans to introduce the Affordable Childcare and Eldercare Act so that Americans can deduct childcare and eldercare from their taxes as well as offering incentives for employers to provide on-site childcare services and create tax free dependent care savings accounts for both young and elderly.
Trump’s full 100-day action plan is available here.