White House

President Trump's tax plan: Here's what it includes

FBN's Gerri Willis breaks down the proposal

 

President Trump’s top economic advisers laid out an ambitious tax plan Wednesday afternoon that the administration contends will simplify the process for average Americans and “stimulate” business investment.

Chief economic adviser Gary Cohn and Treasury Secretary Steve Mnuchin unveiled the first official details -- printed on a single sheet of paper -- of a plan Cohn called “the most significant tax reform legislation since 1986, and one of the biggest tax cuts in American history.”

The document is mostly a series of broad principles under three headings: Goals for Tax Reform, Individual Reform and Business Reform. But there are a series of specifics laid out, including:

  • Would reduce seven tax brackets to three tax brackets: 10 percent, 25 percent and 35 percent. The previous top tax bracket was 39.6 percent.
  • Doubles the standard deduction for a married couple to $24,000. This change also means more couples will no longer need to itemize deductions, making the process of filing taxes simpler.
  • Repeal 3.8 percent ObamaCare tax “that hits small businesses and investment income.” The repeal of the Affordable Care Act tax comes as Republicans are trying to replace the law all together as part of a massive health care overhaul.
  • Lowers business tax rate from 35 percent to 15 percent.
  • Institutes “one-time tax on trillions of dollars held overseas.”
  • Repeals the estate tax, also known as the “Death Tax,” which applies to the transfer of property of a deceased person.
  • Repeals the Alternative Minimum Tax, which was enacted as a penalty on wealthy individuals.