The White House
Office of the Press Secretary
For Immediate Release
April 27, 2017
ICYMI: WSJ Praise For Trump Tax Reform Plan
“Mr. Trump’s modernization would be a huge improvement on the current tax code that would give the economy a big lift, especially on the corporate side.”
Trump’s Tax Principles
The Wall Street Journal
The White House rolled out its tax principles on Tuesday, investing new energy in the first serious reform debate in 30 years. … [P]resident Trump’s outline resembles the supply-side principles he campaigned on and is an ambitious and necessary economic course correction that would help restore broad-based U.S. prosperity.
Many voters heard Mr. Trump’s make-America-great-again slogan as a promise to raise their incomes and improve economic opportunities after a long stagnation. Eight years of 2% growth since the recession ended in 2009 is the weakest recovery in the postwar era, and the result has been rising anxiety and diminished expectations for millions of Americans.
Faster growth of 3% a year or more is possible, but it will take better policies, and tax reform is an indispensable lever. Mr. Trump’s modernization would be a huge improvement on the current tax code that would give the economy a big lift, especially on the corporate side. The reform would sharply cut the business income rate to 15% from 35%, while simplifying the code for individuals and cutting some marginal rates.
The cuts would be permanent and immediate, and the rates are low enough to enhance the incentives to work and invest.
Mr. Trump’s plan is an opening bid to frame negotiations in Congress, and there are plenty of bargaining chips.
Republicans won’t get another opportunity like this to reshape the tax code for a generation.
The Trump principles show the President has made growth his highest priority, and they are a rebuke to the Washington consensus that 1% or 2% growth is the best America can do. Now Mr. Trump has to show results. If anything close to this reform can survive the political maelstrom, it will go a long way toward returning to the abundance of the 1980s and 1990s.
Briefing with Secretary of the Treasury Steven Mnuchin and National Economic Director Gary Cohn – Wed 4/26/2017
This is a president who wants to get things done. President Trump plans to propose massive tax cuts for small and large businesses biggest in the history of the United States.
Mnuchin said the administration wants to “do the whole thing,” and not pursue tax reform piece by piece. Amid concerns that such sweeping tax cuts would significantly reduce revenue for the government, he suggested economic growth will help pay for the plan.
CHANGING From 7 Tax Brackets To 3 Tax Brackets
REDUCING Tax Brackets: 10%, 25%, 35% Brackets
DOUBLE The Standard Deductions, doubling the tax deductions, Married Couples GET $24,000 that a couple earns or $0.0 tax rate for first $24,000.
FAR Fewer tax payers will need to itemize – tax forms can go back to 1 simple page
Families will benefit from tax relief to help with Child Independent Healthcare Expenses
Repeal the Alternative Minimum Tax (AMT), people won’t have to do taxes twice to see which return is higher, we will HAVE one simple tax code.
We are going to Return the top Capital Gains Rate and Dividend Rate to 20% – repealing the harmful Obamacare tax of 3.8%.
We are going to repeal the Death Tax
We are going to Eliminate most of the tax breaks to high income individuals (Home ownership, charitable giving and retirement savings will be protected) others will be eliminated.
I WOULD NEVER EVER BET AGAINST THIS PRESIDENT, HE IS GOING TO GET IT DONE FOR THE PEOPLE. National Economic Director Gary Cohn
“This is going to be the biggest tax cut and the largest tax reform in the history of our country,” Mnuchin said.
MASSIVE TAX CUT FOR SMALL, MEDIUM AND LARGE BUSINESSES, ALL WILL BE ELIGIBLE.
THIS WILL BE A MASSIVE TAX REFORM AND SIMPLIFICATION
WE WILL LOWER BUSINESS TAX RATES TO 15%
IT WILL BE A TERRITORIAL SYSTEM
WE WILL BE HOLDING BUSINESS LISTENING SESSIONS
THE PRESIDENT’S OBJECTIVE IS CREATING ECONOMIC GROWTH, we believe we can get back to 3% GDP, or higher.
The overall plan is a Massive tax cut and tax reform. Regulatory relief and renegotiating trade deals WILL unlock economic growth in this country.
“We want to deliver a middle-income tax cut, want to simplify personal taxes and want to make business more “competitive.” They are not on a level playing field and that’s why we have trillions of dollars of cash sitting off shore and that why we have jobs being moved out of this country. We are determined to make U.S. business competitive and that’s big business and small business and we are listening to what people have to say and we are going to incorporate it into the plan.”
Mnuchin said Wednesday morning that the House, Senate and administration are all “on the same page” and called tax reform a “major priority.” The administration is also looking at a big increase in the standard deduction.
The administration is holding listening sessions and are running enormous amounts of data right now. This is a broad brush overview of the entire plan.
Family of 4 will get a tax cut – THE HOUSE LEADERSHIP is in very robust talks on those details.
WHAT THIS IS ABOUT IS CREATING JOBS AND CREATING ECONOMIC GROWTH. MASSIVE TAX CUTS, MASSIVE TAX REFORM, SIMPLIFYING THE SYSTEM IS WHAT WE ARE GOING TO DO. Secretary Mnuchin