On April 26, the White House released a broad outline of Trump’s tax reform. After weeks of media coverage and expectations for the plan, the American public was provided with a one-page hand-out from the White House detailing President Trump’s vision for reform.
For individuals, Trump’s proposal calls for lowering the number of tax brackets from seven to three for individuals. This means the rates will go to 10%, 25%, and 35%, respectively. The White House also provided a broad outline for repealing the Death Tax, repealing the Alternative Minimum Tax, and repealing the 3.8% Obamacare tax that comes out of small business and investment incomes.
Small-business owners should be encouraged by the plan. The outline showed that Trump’s priorities do still stand with business owners, growing the economy, and creating jobs for people across the country. The plan proposed slashing the top tax rate from 35% to 15% for corporations and lowering rates from 39.6% to 15% for owners and shareholders of pass-through businesses, which is how many small businesses are taxed. The White House also suggested eliminating tax breaks for special interests and a one-time tax on any money currently held overseas.
To put it broadly, President Trump has put forth a proposal that is encouraging. His tax plan would set lower rates, would simplify the process to a certain degree, and would potentially close loopholes to ensure everyone is paying their fair share. As with the House GOP tax blueprint, this is certainly a step in the right direction and will get the conversation on reform moving, but voters want to see action on tax reform, not just proposals.
President Trump must come together with Speaker Ryan and Ways and Means Chairman Kevin Brady to turn their respective proposals into actual legislation. The American business community wants to see a tax reform bill as soon as possible so that they can begin to reap some of the benefits touted in these proposals and more than ever contribute to economic growth and job creation. We commend President Trump for pushing the conversation forward, and now it’s Congress’ turn to get to work on tax reform legislation that works for all Americans