President Donald Trump will reportedly release details of his Administration’s tax reform blueprint in the coming weeks, although the exact timing and whether the reform plan will mirror details released during the campaign remains unclear.
Gary Cohn, who leads the Administration’s National Economic Council, said that he’s been meeting with key members of Congress to craft a plan that achieves two key goals: cutting corporate income and individual income taxes. During his campaign, Trump adopted an individual income tax reform plan favored by House Republican leaders that would consolidate the existing seven individual income tax rates to just three. The top rate would be reduced from 39.6 percent to 33 percent. In addition, the plan announced during the campaign would cap itemized deductions, including the charitable deduction, at $200,000 for married-joint filers and $100,000 for single filers, and nearly triple the standard deduction.
Overall, the Administration’s tax plan will likely incorporate a number of elements from the blueprint released by Ways and Means Committee Chairman Kevin Brady (R-TX) and House Republican leadership in June 2016, but to what extent the proposals will harmonize on key details remains to be seen. Brady and majority committee staff are currently working on a draft legislation based on their blueprint with release expected this spring.
The president’s upcoming address to Congress scheduled for February 28 may be a clue for a planned roll out for details of his tax reform measure, and more information is expected in the coming weeks.
Source: BNA Daily Tax Report (subscription required)
Jamie Tucker is the director of public policy strategy and operations at Independent Sector.