WASHINGTON – On April 26th, the Trump administration released the largest tax reform in our nation’s history, calling for massive tax cuts for businesses and American families.
In addition, the White House promised that its tax reform proposal was not aimed at pleasing either the Republicans or Democrats, but instead was written with the purpose of helping the middle class. The plan was created to be simplify the existing tax code in such a way that it would make sense to every American–– something that previous administrations has neglected to do in the past.
Moreover, the plan calls for the corporate tax rate to be slashed from 35 percent to 15 percent. It also intends to replace the seven existing income tax brackets with three new ones, abolish the alternative-minimum tax and estate tax, and increase allowed deductions from $6,300 to $12,600.
From the start of his time in office, President Trump has focused on growing businesses and improving the nation’s economy. The White House hopes that this reform will lead to immediate economic growth and spur the creation of more jobs.
Unsurprisingly, the President's tax plan quickly drew criticism from Democrats, many saying that this reform could negatively impact the deficit.
They also expressed concerns that the plan did not adequately specify which income levels would be used to place taxpayers in each of the three new brackets.
Before being officially made law, this plan will have a lot of political hoops to jump through. This, of course, is no different then many of the previous policies Trump has attempted to make law. So far, that has proven to be a common theme in today's government, leading to an insufficient level productivity in our federal government.