The Republican tax plan includes reducing the top personal tax rate and business tax rates as well.
Of course, Democrats will fight the Republican tax plan because it involves reductions for the wealthy. To Democrats, nothing else matters but maintaining punitive taxes on the rich. The problem is, if you’re looking for a way to boost the private economy, the wealthy are paying more in the first place so tax cuts can be more significant for them.
Axios reports, “Exclusive: Trump, GOP to cut top rate to 35 percent.”
President Trump and Republican leaders plan to cut the top tax rate for the wealthiest Americans to 35 percent and dramatically reduce taxes on big and small businesses, according to details leaked to Axios.
Why it matters: It’s the first glimpse of the tax reform plan agreed upon in secret between the “Big Six” congressional leaders and administration officials. It forms the starting point of the tax reform process, which will play out over the coming months.
The big change: The GOP leaders and the White House plan to cut the top tax rate for “pass through” businesses from 39.6 percent to 25 percent. (Most businesses in America do not pay the corporate tax. Sole proprietors and other mostly smaller businesses see their profits “passed through” to their owners and taxed at the individual income rate.)
The so-called “Big Six” tax framework — named because it’s been hashed out behind closed doors between six top Republicans and administration officials — will set up a clash with Democrats over the tax breaks that apply to large corporations and upper income Americans.
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