Federal Spotlight: President reveals tax reform plan

April 27, 2017

President Donald Trump unveiled his comprehensive tax reform plan this week. The president provided a one-page document that includes a broad list of changes he wants to make to the tax code, however it is likely that details will be worked out through negotiations by congressional leaders and treasury officials. Some of the proposals include the following:

  • Lowering the corporate tax rate from 35 percent to 15 percent
  • Eliminating the alternative minimum tax
  • Eliminating the estate tax
  • Cutting individual income tax rates - going from seven to three brackets
  • Repealing an investment-income tax rate for high earners
  • Eliminating federal-income tax deduction for state and local taxes paid

By creating a more competitive tax code and focusing on economic growth, the Trump administration seeks to achieve sustained economic growth of 3 percent or greater according to Treasury Secretary Steven Mnuchin. Mnuchin said the tax plan will pay for itself with economic growth.  Mnuchin told reporters that Trump's principles will include a "middle income tax cut," and cuts in business taxes as well as "simplification" of the code so most Americans can file their taxes on a postcard. Read more from Bloomberg here and here.