White House unveils Trump tax plan

by Ryan Smith26 Apr 2017
The White House has unveiled President Donald Trump’s tax plan, which they said would be the “biggest tax cut” in US history – but it will keep the popular mortgage interest deduction.

Treasury Secretary Steven Mnuchin had earlier made some noises about eliminating the popular deduction, which allows borrowers to deduct the interest paid on their home loans from their income tax. However, there was strong pushback from the housing industry, which wanted to keep the deduction right where it was.

Mnuchin and White House economic advisor Gary Cohn outlined the tax plan for reporters, according to CNBC. The plan is largely similar to proposals Trump made as a candidate. According to CNBC, Trump’s plan will:
  • Cut the number of tax brackets from seven to three, with rates of 35%, 25% and 10%, and double the standard deduction
  • Eliminate tax deductions with only some exceptions, including the mortgage interest deduction and the deduction for charitable contributions
  • Institute a “one-time tax” on money held by corporations overseas. However, Mnuchin said the rate for that tax hasn’t been determined, CNBC reported
  • Abolish the estate tax
  • Repeal the alternative minimum tax and 3.5% Obamacare taxes
Mnuchin would not say whether the tax plan would add to the deficit, CNBC reported.


Related stories:
Mortgage interest deduction may be on Trump’s chopping block
Trade groups urge Congress to renew homeowner tax provisions

COMMENTS

  • by LRBJR | 4/27/2017 1:10:10 PM

    If in fact, the plan is as stated and all the tax code is simplified without special interest line items which have been woven into our tax code, I will be shouting with joy. It would mean that the Treasury department would be 10% of it size; tax fraud would be far more difficult to hide; business, industry, and individuals would benefit and the Gov. Budget would be reduced by a third thereby freeing up funds for those programs that benefit the people not special interests. Make sure the Congress is on the same plan and no Perks as well. or Tax the HELL out of their Perks such that they owe more for accepting the Perks than the benefit they receive. Also tax Congress persons for any front running that creates a financial benefit beyond the cost of participating. Drain the Swamp...

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