The Donald Trump administration proposed on Wednesday, April 26, a historic drop in taxes, especially for companies, a shock initiative before its 100th day in power, but will be negotiated foot to foot in Congress.
Treasury Secretary Steven Mnuchin and Economic Advisor Gary Cohn presented the press with a detailed plan, but a single page listing principles, including:
– reduction of the corporate tax from 35% to 15%
– reduction of the number of personal income tax brackets by 7 to 3
– the elimination of almost all possibilities of tax deductions, with the aim of extreme simplification, so that households can make their declaration on a single page.
“We want to stimulate economic growth”
“Making corporation tax more competitive, repatriating thousands of billions of dollars to create jobs, simplifying income tax, cutting taxes. These basic principles are not negotiable,” said Steven Mnuchin.
“We want to stimulate economic growth,” said Gary Cohn. The goal is to get the reform passed in 2017. “We are going as fast as we can,” said the Secretary of the Treasury.
According to Gary Cohn, this will be the largest tax reform since Ronald Reagan in 1986, and “one of the biggest tax cuts in American history.”
Donald Trump, who took charge of the office in January, had promised during his campaign to refurbish the tax code complex, which he himself was accused of taking to the extreme to alleviate his tax bill of real estate developer during Decades.
He even said he was in favor of raising taxes on the wealthiest, including him. This plan goes in the opposite direction.