This week the White House released a one-page summary which it called a “broad brush overview” of President Trump’s tax reform agenda for individuals and corporations. In a joint press conference with Gary Cohn, Director of the National Economic Council and Steven Mnuchin, Secretary of the Treasury, the core principles of the tax plan were outlined: “to make business rates competitive, bring back trillions of dollars to create jobs, simplify personal taxes, and to create a middle-class tax cut”.
The tax reform package, which closely resembles the plan outlined by the Trump campaign in the fall of 2016, includes cutting the corporate tax rate from 35% to 15% in order to help US businesses compete in an increasingly aggressive global economy. On the personal tax side, the plan includes reducing individual income tax brackets from 7 to 3, doubling the standard deduction, and eliminating itemized deductions other than home mortgage interest and charitable deductions.
The Alliance for Charitable Reform (ACR) made the following statement upon the release of the proposal: “We applaud the administration for preserving the charitable deduction and for recognizing that it is a lifeline for millions, not a tax loophole.” Click here to read more.