Trump reportedly plans to raise bottom tax rate to offset tax cuts for wealthy [View all]

[applegrove]

REBEKAH ENTRALGO at Think Progress

https://thinkprogress.org/trump-reportedly-to-plans-to-raise-bottom-tax-rate-to-offset-tax-cuts-for-wealthy-55f07ec0b470/

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With multiple failed attempts at repealing and replacing the Affordable Care Act, all eyes are on Republicans as they prepare to pass major tax reform measures that would effectively provide a hefty tax cut to the top tax bracket while lowering the corporate tax rate to around 20 percent from 35 percent.

As President Donald Trump prepares to announce his plan to “cut taxes tremendously for the middle-class” tomorrow, details about the tax reform plan, which was largely constructed in secrecy by former Goldman Sachs employees now in the administration, are beginning to make their way to the public. On Tuesday, Axios reported Republicans have agreed on a plan to raise the bottom tax rate from 10 percent to 12 percent, while also doubling the standard deduction.

This increase in the bottom tax rate is one of the ways the Trump administration is planning on paying for the massive tax cut for the rich. Trump’s plan is expected to slash the top individual tax rate from 39.5 percent to 35 percent.

“[Republicans] are clearly looking for ways to offset the enormous tax cuts their plan gives to the wealthy and corporations. Just the tax cuts that have been reported would cost $5 trillion,” said Seth Hanlon, senior fellow specializing in tax policy at the Center For American Progress. (Disclosure: ThinkProgress is an editorially independent site housed at the Center for American Progress Action Fund, the sister organization of the Center for American Progress.)


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