Although the majority of it has already been leaked over the past few days, Trump has unveiled his new plan to reform the American tax system. The plan is hoped to be the culmination of a longstanding Republican effort to reform an aging tax code. Donald Trump is due to give a speech on the new plan in Indiana while senior Republicans hope to put the finishing touches on their plan.
Trump’s tax reform plans are a large part of the GOP’s agenda and Trump has publicly called for a change in the system, arguing that America’s middle class has suffered in recent decades because of the tax system. With no major legislative victories and with the reforms being pushed back from their original deadline in August, the GOP is eager to get tax reform sorted out quickly. A team of negotiators known as ‘The Big Six’ has spent months thrashing out broad agreements to untangling and readjusting parts of the US tax code.
In short, the tax reform is aimed at changing the corporate tax rate from 35% to 20% although Trump personally advocated for 15%. There is also talk of a tax cut for American’s middle class with tax credits for children and a new tax credit for the elderly and disabled. The plan is still vague in places, particularly on how the middle class will benefit in the long run and whether America’s richest citizens will be better off despite Trump’s promises.
However, the tax reforms are not without hurdles. There is still speculation that Trump might contradict his own party on the issue in his speech later today. The Democrats have already slammed the plans for their lack of details along with criticism that the only people who will benefit from the reforms will be the wealthiest Americans and the biggest corporations. There is also talk of the NFL taking a hit as Republicans hint at taking away tax incentives after protests against Donald Trump. Even within the party, there is little agreement on even the broad outlines in the newly-released documents.
So far, everything we know about Trump’s tax reform is slated to form the template for new legislation from the Republicans. It remains to be seen how the tax reform plan from the GOP will benefit Americans as a whole or even what the final draft will contain.
More details will follow.