Trump’s mega-payments plan: A blueprint for overhauling the nation’s tax code, according to White House officials
The president is considering several major overhauls to the tax code and wants to move money from the wealthy to the middle class.
But a White House official said Monday that the President would keep in place an unpopular tax loophole that allows Americans to pay little or no federal income taxes for many years.
The proposal comes amid a national debate about how to reform the nation, with Republicans and Democrats on opposite sides of the aisle calling for a broad overhaul of the tax system to make it fairer for everyone.
At a time when tax revenue has lagged the economy, President Donald Trump is pushing a plan to increase the nations tax burden, with his aides arguing that the wealthy pay too little in taxes and a broader push to reduce the number of tax brackets.
“We’re proposing to make our tax code simpler, fairer and simpler for everyone,” White House press secretary Sarah Huckabee Sanders said Monday.
In the coming months, the White House has said it wants to bring the top 1 percent of earners in line with their peers, and make the estate tax exemption more generous to those with large inheritances.
Democrats are already calling for sweeping tax reform.
They want to lower the top rate from 39.6 percent to 35 percent, raise the threshold for a mortgage to $1 million, eliminate the Alternative Minimum Tax and lower the corporate tax rate from 35 percent to 20 percent.
Trump has said he wants to use the tax plan to help families struggling with health care costs.
His plan would increase the child tax credit for families with children and increase the tax credit available to the elderly, who currently receive a small benefit.
Some Republican lawmakers are also calling for more targeted tax breaks.
House Ways and Means Committee Chairman Kevin Brady of Texas said Monday the plan would help more Americans.
It would provide tax relief for families and help more families buy health insurance, he said.
“This is the right way to make the American people’s taxes more fair,” Brady said.
“We need to do this and we need to get it done.”
Trump’s plan is a blueprint for an overhaul of U.S. tax law, which is riddled with loopholes that benefit the rich and the wealthy at the expense of the middle and working classes.
There are about 9 million people who are millionaires, according a report released Monday by the Joint Committee on Taxation, but only about 2 million of them pay income taxes, according