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WHITE HOUSE REVEALS NEW TAX REFORM PLAN

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President Trump unleashed a new plan for tax reform in a speech at the Indianapolis State Fairgrounds on Wednesday.

The plans are the product of discussions between White House Treasury Secretary, Steve Mnuchin, the House Ways and Means Chairman, Kevin Brady, the Senate Finance Chairman, Orrin Hatch, House Speaker, Paul Ryan,  Senate Majority Leader, Mitch McConnell, and White House economic policy chief, Gary Cohn. Their purpose will be to strengthen the middle class, grow the economy, and engender economic recovery by broadening the tax base, closing loopholes, and fostering growth.

According to a press release by the Treasury Department, the reforms will mean that less of the earnings of middle-class families will be subject to Federal income tax, and will reduce the number of tax brackets from seven to three: 12%, 25%, and 35%. It will also increase child tax credits and repeal the death tax and alternative minimum tax.

For business, the reforms seek to reduce the corporate tax rate to 20% and limit the taxation imposed on small and family-based businesses operating as sole proprietorships and small businesses corporations to 25%.

The reforms have received support from both politicians and numerous free-market groups. The Republican Congressman from Wisconsin, Paul Ryan, said on Capitol Hill:

“This has been a long time coming. Instead of a source of pride, our tax code has become a constant source of frustration. It’s too big. It’s too complicated. It’s too expensive. Today, we are taking  the next step to liberate America from our broken tax code.”

Similarly, the House Freedom Caucus, which is comprised of Congress’ most conservative members, said in a statement:

“President Trump has delivered a forward-looking tax reform framework that will let hard-working  Americans keep more of their money, simplify our system, end carve-outs for special interests,  and will help make our businesses competitive abroad. The Freedom Caucus looks forward to sending a final  bill based on this framework to President Trump’s desk as soon as possible.”

 

REPUBLICANS AND DEMOCRATS TO MEET AT THE WHITE HOUSE FOR TAX REFORM

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President Trump and members of his administration are about to embark on a focused and deliberate campaign to win support for the President’s planned reforms to the American taxation system.

Both President Trump and Vice President Mike Pence are focused on winning the support of select members of the Democrat Party after the disastrous attempt to repeal Obamacare in July.

The White House will host a dinner on Tuesday night to be attended by Democratic Senator from North Dakota, Heidi Heitkamp, Democrat Senator from Indiana, Joe Donnelly, Democratic Senator from West Virginia, Joe Manchin, Republican Senator from Utah, Orrin Hatch, Republican Senator from South Dakota, John Thune, and Republican Senator from Pennsylvania, Pat Toomey.

In addition, Vice President Mike Pence will travel to Indiana three times over the coming weeks in an attempt to convince Donnelly, who is for reelection in 2018, in an attempt to convince him to support tax reform.