Time: 11:43 p.m. CEST
The White House economic adviser Gary Cohn and Treasury Secretary Steve Mnuchin introduced new proposal of the U.S. President Donald Trump for the tax code. The proposal, which is a one-page outline, as the Washington Post writes, presents an initial offer for opening negotiations with lawmakers to rework tax code for better economic growth.
“We have a once-in-a-generation opportunity to do something big and important on taxes,” the White House National Economic Council Director Gary Cohn said on Wednesday. Treasury Secretary Steve Mnuchin said, “The overall economic plan consists of massive tax cuts, tax reform, regulatory relief and renegotiating trade deals.” According to suggestion of the outline, the plan should eliminate the seven existing income tax brackets, which will be replaced with three brackets, giving new rates of 10 percent, 25 percent and 35 percent, depending on the income.
Another will be the deduction for married couples, where the deduction would move from $12.600 to $24.000. People could use standard deduction, instead of itemizing the tax returns. Aside possible changes in the tax code for individuals, families, Trump’s proposal could lower the corporate tax rate, which is now 35 percent. The outline suggest drop of the corporate tax rate from 35 percent to 15 percent, and smaller business could use 15-percentage threshold.
Those companies are mostly known as “S corporations,” meaning small, family owned firms. The White House suggest a one-time tax “holiday,” for companies to bring their offshore profits kept outside the United States, which estimates are on trillion dollars. As Reuters writes, Mnuchin said the administration works with Congress on a lower rate.