Trump outlines major tax cut plans

http://www.bbc.com/news/business-41404415

US President Donald Trump has called for major tax cuts as part of a longstanding Republican effort to overhaul the US tax system.

A framework released by Republicans calls for lowering the tax rate for corporations from 35% to 20%, among other changes.

The president said the revamp will make the US more competitive and help middle class families.

Democrats criticised the plan as a give-away for the wealthy.

The Republican blueprint does not detail what tax benefits might be eliminated to offset the cost of the cuts – negotiations that are likely to be difficult.

The Chamber of Commerce, an influential business group that has pushed for reform, said it would remain engaged during the “hard decisions” ahead.

President Trump said he wanted to simplify the system, lower the burden on middle class families and make the US more competitive.

“Our country and our economy cannot take off like they should unless we dramatically reform America’s outdated, complex and extremely burdensome tax code,” he said.

Among the changes, Republicans would slim the number of tax brackets to three – with people charged at a 12%, 25% or 35% rate.

What incomes would qualify for each rate is still unknown.

Currently, the bottom rate is 10% and the top rate is close to 40%.

Democrats said the changes will hurt middle class families, particularly lower income, single parents with children.

“He’s talking the talk but he’s not walking the walk,” said Senator Chuck Schumer of New York, a top Democrat.

Mr Schumer also said the cuts would increase the deficit, putting entitlement programmes such as Medicare and Social Security at risk.

The Committee for a Responsible Federal Budget, a nonpartisan think tank, said a rough analysis suggests the proposal would lead to $2.2tn in net cuts over about a decade.

The Trump administration maintains that closing loopholes will help offset revenue loss, but the plan does not specify what benefits will be eliminated.

Lawmakers plan to preserve tax incentives for homeownership, retirement, education, as well as research and development.

White House officials said they intend to erase deductions for state and local taxes, among others.

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“A framework released by Republicans calls for lowering the tax rate for corporations from 35% to 20%, among other changes.”

thats not a cut..its an amputation..

“Currently, the bottom rate is 10% and the top rate is close to 40%.”

401

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~ by seeker401 on September 29, 2017.

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