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

US President Donald Trump speaks before a meeting with lawmakers in the Cabinet Room of the White House

A Republican tax package expected to drop this week will include broad income and corporate tax cuts, making it difficult for President Donald Trump to follow through on his promise to hit the rich the hardest, The Washington Post reported. Assuming Congress adopts a reform plan this year, will it include a substantial cut for the middle class? The child tax credit would also increase, though the number is not yet specified, and there would be new credits for "dependents" who are not children. The plan aims to cut taxes for individuals and corporations, simplifies the overall tax system, and practically doubles the standard deduction that many Americans use.

President Trump meets at the White House with a bipartisan group of lawmakers about tax reform. During the campaign, Mr. Trump said overhauling the tax code would raise economic growth to 4 percent.

Rates in the lowest tax bracket, however, may actually increase, from 10 percent to 12 percent, according to a report Tuesday from Axios.

Trump made the announcement after a White House meeting with Democrats and Republicans on the House Ways and Means Committee.

The latest plan in many ways meets the tax rate levels set by House Republicans months ago, although they would have raised an additional $1 trillion by charging higher taxes on certain imports. The top individual rate is now 39.6%, and the corporate rate is 35%.

Trump plans a trip to Indiana Wednesday for a speech on tax issues, a person familiar with the planning said.

China to ban some petroleum exports to North Korea
General Assembly, called Kim "Rocket Man", and Kim threatened in a video to "tame the mentally deranged USA dotard with fire". Trump, speaking during the U.N.

"We're ready to build on this momentum and help get tax reform across the finish line", Representative Kevin Brady of Texas said.

The blueprint also calls for legislators to retain tax incentives for homeownership, retirement savings, charitable giving and higher education. This loophole would slash the tax rate on the profits from these businesses by more than a third.

The Republican plan "would result in a massive windfall for the wealthiest Americans and provide nearly no relief to the middle-class taxpayers who need it most", Senate Minority Leader Chuck Schumer, a New York Democrat, told colleagues on the Senate floor. The GOP also is at odds over eliminating the federal deduction for state and local taxes.

In addition to the slight uptick for the lowest tax bracket, the Republican plan is expected to propose lowering the top individual tax rate to 35% from 39.6%. He also said the plan will provide a middle-income tax cut and said it will create jobs.

"The poll shows that there is majority support for dropping the top rate back to 35 [percent] in exchange for fewer deductions and for business tax cuts so long as they bring their overseas profits back home", Harvard-Harris co-director Mark Penn told the Hill.

Republicans in Congress have fought for years to balance the budget over 10 years and eliminate the deficit, but they have pivoted away from that demand during the tax talks because many of them think that tax cuts will deliver a needed jolt to the economy. That move would allow GOP lawmakers to pass legislation without Democratic support. It will be left to Congress to create safeguards that prevent wealthy individuals from incorporating as pass-through businesses, which would tax their income at a lower rate.

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