The White House Releases More Details on Tax Reform Plan
President Donald Trump and Republican leaders launched an urgent effort to get a major legislative win this year, announcing a long-awaited tax plan that will immediately set off a fight over how much top earners should pay.
The framework proposes cutting the top individual rate to 35 percent, but leaves it up to Congress to decide whether to create a higher bracket for those at the top of the income scale.
The rate on corporations would be set at 20 percent, down from the current 35 percent, and businesses would be allowed to immediately write off their capital spending for at least five years. Pass-through businesses would have their tax rate capped at 25 percent.
The plan sets out three tax brackets for individuals -- 12 percent, 25 percent and 35 percent, down from the existing seven rates, which top out at 39.6 percent. As of now, that is not firmly set, as congressional tax-writing committees will be given flexibility to add a fourth rate for the highest earners.
By Patrick Cooney, The Federal Group, Inc.
Legislative Representative, Dental Trade Alliance