The Main Highlights In Trump’s Sweeping Tax Reform Proposal

In brief, the tax reform was largely in line with what was leaked and what was expected. Small surprises: the tax bracket for high income earners was 2% more (at 35%) than what Trump campaigned on, and the standard deduction has been doubled so that no married couple pays tax on their first 24k earned, Citi notes.

As expected, no mention of border adjustment taxes. The plan also looks to repeal real estate taxes, alternative minimum tax and the death tax. Territorial taxes are also included. As we type, Mnuchin and Cohn are answering their last question.

Below is the actual tax from the White House:

2017 Tax Reform for Economic Growth and American Jobs

The Biggest Individual And Business Tax Cut in American History

Goals For Tax Reform

Grow the economy and create millions of jobs

Simplify our burdensome tax code

Provide tax relief to American families—especially middle-income families

Lower the business tax rate from one of the highest in the world to one of the lowest

Individual Reform

Tax relief for American families, especially middle-income families:

Reducing the 7 tax brackets to 3 tax brackets of to%, 25% and 35%
Doubling the standard deduction
Providing tax relief for families with child and dependent care expenses

Simplification:

Eliminate targeted tax breaks that mainly benefit the wealthiest taxpayers
Protect the home ownership and charitable gift tax deductions
Repeal the Alternative Minimum Tax
Repeal the death tax

Repeal the 3.8% Obamacare tax that hits small businesses and investment income

Business Reform

15% business tax rate

Territorial tax system to level the playing field for American companies

One-time tax on trillions of dollars held overseas

Eliminate tax breaks for special interests

Process

Throughout the month of May, the Trump Administration will hold listening sessions with stakeholders to receive their input and will continue working with the House and Senate to develop the details of a plan that provides massive tax relief, creates jobs, and makes America more competitive—and can pass both chambers.