Trump proposal slashes taxes on businesses, the rich amid deficit worries

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In addition, the President's plan would reduce the current seven tax brackets to three: 12%, 25% and 35%, although the the plan doesn't specify where the boundaries would be for each bracket.

"Manufacturers in America have never been as enthusiastic or as optimistic about their future as they are this year, and that is because of the huge opportunity we have to get tax reform done", said Jay Timmons, NAM's president and CEO.

Overall, Trump's tax cut is big enough to raise Americans' after tax incomes in 2018 by 2%.

The real estate mogul-turned-politician, who promised big tax cuts as a candidate, told reporters he personally would not gain financially from the proposal. The tax reform plan is definitely not ideal - I myself hoped to see Republicans implement bolder pro-growth policies like permanent full expensing, and tackle the more useless tax giveaways like the American Opportunity Tax Credit. The U.S. corporate tax rate has been higher than the OECD average for nearly 20 years. If that happens, it could have a big effect on Trump's tax bill.

The president emphasized his plan replaces "confusion with total clarity", and will mean the "vast majority of families will be able to file their taxes on a single sheet of paper". Trump said the first $12,000 earned by an individual and the first $24,000 by a married couple would be tax-free.

Tax Policy Center: 53.3 percent of the benefits will go to the richest 1 percent.

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Trump has yet to sign a major piece of legislation, after Congress failed repeatedly this year to pass a repeal of Obamacare, his predecessor's signature health care law.

And many people wouldn't get a tax cut at all.

The Trump administration has tried everything-including outright lies and suppression of contradictory evidence-to avoid admitting that its tax plan will primarily benefit the wealthiest Americans, but a new analysis released Friday by the non-partisan Tax Policy Center (TPC) makes that fact inescapable.

Trump has proposed to reduce the corporate tax rate to 20 per cent. If Democrats are serious about helping the working and middle classes, they should be supporting tax reform instead of blindly working to undermine Republicans.

He is expected to highlight specific parts of the plan that will benefit manufacturing, including the lower tax rates for businesses and an "expensing" provision allowing businesses to immediately write off the costs of their investments for at least five years.

CURRENT SYSTEM HURTS AMERICAN WORKERS AND BUSINESSES: The United States has the highest corporate tax rate among developed economies, a burden carried by American workers. Pass-throughs, which include everything from small businesses to hedge funds, currently have their income taxed through the individual code, which has a top rate now of 39.6 percent. Mr. Mnuchin said he expects the plan would boost gross domestic product growth to an annual rate of 2.9% over the next 10 years, generating an additional $2 trillion of revenue.

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