Trump Reveals New Tax Plan

April 27, 2017 Taxation in USA

Trump Tax PlanWASHINGTON D.C. – The US Trump administration has pushed out its tax reform plan, touting new tax cuts, but without any new tax revenue streams.

On April 26th the Trump Administration released its blueprint for upcoming tax reforms to be enacted in the USA.

The new blueprint is intended to be used as a guide and direction for lawmakers as they debate the proposed tax reform bill over the coming months.

The new plan has been hailed as the “biggest individual and corporate tax cut in American history”.

The key points of the plan revolve around the reduction of corporate income tax from a rate of 35 percent to 15 percent, and a reduction in the number of tax thresholds for personal income, from the current seven to three.

The number of tax deductions available for households would double, a move which would effectively make the first USD 24 000 of earned income tax free.

It was also said that a repatriation tax would be enacted, although details were scarce, but pundits believe that the rate would be favourable for large businesses looking to move funds from overseas to the USA.

The plan did not contain any proposals of how new revenues would be raised, or how the proposed tax cuts would be covered.

Some economists have already claimed that the suggested changes would result in deficits for several years, while the Trump administration claimed that the changes would be paid for by improved economic activity, growth, and the closure of tax loopholes.