Trump tax plan expected to double standard deduction, lower corporate rate

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But numerous specifics, such as whether the individual tax cuts would favor the wealthy, are still to be worked out. Republicans have produced no major legislative successes since Trump took office in January even though they control the White House and both chambers of congress. It mentions the potential for one additional top rate "to ensure that the wealthy do not contribute a lower share of taxes paid than they do today".

Republican leaders have acknowledged that the plan, if enacted, initially would add to the budget deficit.

The Republicans pitching the plan say economic growth will compensate for compensate for lost revenue. It will be very hard for the GOP to do any worse than they have on health care, and I'd be surprised if the party doesn't get some kind of tax cut. The MID is a $70 billion annual tax expenditure that primarily benefits higher income households - a significant amount of the benefit of the MID goes to the top 1% of earners in the country. That's not as low as Trump wanted, but is still a big reduction, to the lowest top rate since 1940.

More than 3.2 million people in NY - or about 35 percent of the state's tax filers - claim their state and local taxes as deductions on their federal returns.

Businesses have been lobbying heavily for a reduction in the corporate rate. This could include charging them a higher tax rate, but no final decisions have been made. "On the small business side we are going to limit the maximum tax rate applied to small businesses to 25 percent".

For individuals, there is much less clarity.

Trump will propose a sweeping rewrite of the federal tax code on Wednesday, outlining a plan to reduce rates for corporations and individuals and eliminate some popular deductions, in a move that will set off a scramble among powerful groups eager to protect their tax breaks.

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It will be up to Congress to assign the income ranges that would be under each bracket. However, the president still believes that it is possible to decrease corporate taxes to a low of 15 percent. The GOP also is at odds over eliminating the federal deduction for state and local taxes.

The plan would maintain tax breaks for charitable giving and mortgage interest, and it also proposes amendments to the tax code that would benefit education and retirement. At the same time, however, the standard deduction would double. The White House does want to raise income limits for the credit so more families qualify. "It's little more than an across-the-board tax cut for America's millionaires and billionaires".

Wall Street opened higher on Wednesday partly on rising expectations of a December interest rate hike, with a focus also on Trump's tax plan.

But the income levels for the brackets will be decided by the congressional committees.

What cuts are in Republican tax plan?

The group consists of House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch and House Ways and Means Committee Chairman Kevin Brady. ABC News notes that this will be "a likely boon for wealthy individuals who inherit businesses, investments and real estate". "It will deliver the lowest rates on our job creators in modern history and redesign the tax code so our companies can compete and win anywhere in the world, especially here at home".

Months in the making, the plan meets a political imperative for Republicans to deliver an overhaul of the US tax code after the failure of the health care repeal.

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