Trump heads to heartland to talk tax cuts, but won't get into details
CLOSE
The White House announced a tax reform plan Wednesday which would reduce the number of income tax brackets, and cut the top rate from 39.6 percent to 35 percent. (April 26)
AP
President Trump is expected to make a populist pitch for tax reform Wednesday in Springfield, Mo., telling workers at an exhaust fan manufacturing plant he will end an economic system that is rigged against them and steers the biggest benefits to a wealthy few, the White House said.
Trump is not expected to discuss which tax rates would be cut or loopholes eliminated, details that will go a long way toward determining how much average taxpayers will benefit. Republican majorities on House and Senate tax committees have been working on those details all summer, and they may introduce legislation when Congress returns after Labor Day, with a goal of enacting a new tax code by the year’s end.
After the failure of Congress to deliver on its promise of repealing and replacing the Affordable Care Act, tax reform is seen as an issue where Trump could make his mark on the government that would last long after he leaves office.
Trump in April released a one-page outline of tax policy goals that included lowering the top corporate rate to 15% from 35%; reducing the seven individual tax brackets to three and cutting the top rate to 35% from 39.6%; doubling the standard deduction; and repealing the estate tax and Alternative Minimum Tax. Trump’s plan would preserve deductions for charitable contributions and mortgage interest but would eliminate the deduction for state and local income and property taxes and “targeted tax breaks that mainly benefit the wealthiest taxpayers.”
But many details were left unclear, including what income levels would qualify for the different brackets, and whether the tax changes overall would increase the deficit — an issue that could determine whether the tax changes are permanent or need to be renewed periodically.
Agreement: White House and GOP leaders tout deal to cut taxes, but offer no details
Democrats, who are in the minority in Congress, have been largely excluded from the discussions and are facing pressure from progressive groups to reject any plan that provides even a penny of tax cuts for the richest Americans.
A senior White House official said Trump will point to stagnant wages for workers while the wealth of the few at the top has grown is evidence the economy is rigged and needs changes. It’s a message, the official said, that Trump is best positioned to deliver and will cut across partisan lines.
Missouri is also expected to be a battleground state in next year’s midterm elections, with Sen. Claire McCaskill defending her seat in a state that Trump won by 19 percentage points. Trump alluded to that campaign in a tweet over the weekend that said “Dem C.M. is opposed to big tax cuts.”
I will also be going to a wonderful state, Missouri, that I won by a lot in ’16. Dem C.M. is opposed to big tax cuts. Republican will win S!
— Donald J. Trump (@realDonaldTrump) August 27, 2017
Trump is expected to argue that all taxpayers can benefit from reforming the tax code and highlight how the current code resulted in American companies moving jobs overseas to countries with lower tax rates. Trump’s plan would lower taxes on businesses, but in exchange, he will call on them to hire and grow in America and help to rebuild cities, the official said.
Posted!
1 of 85
2 of 85
3 of 85
4 of 85
5 of 85
6 of 85
7 of 85
8 of 85
9 of 85
10 of 85
11 of 85
12 of 85
13 of 85
14 of 85
15 of 85
16 of 85
17 of 85
18 of 85
19 of 85
20 of 85
21 of 85
22 of 85
23 of 85
24 of 85
25 of 85
26 of 85
27 of 85
28 of 85
29 of 85
30 of 85
31 of 85
32 of 85
33 of 85
34 of 85
35 of 85
36 of 85
37 of 85
38 of 85
39 of 85
40 of 85
41 of 85
42 of 85
43 of 85
44 of 85
45 of 85
46 of 85
47 of 85
48 of 85
49 of 85
50 of 85
51 of 85
52 of 85
53 of 85
54 of 85
55 of 85
56 of 85
57 of 85
58 of 85
59 of 85
60 of 85
61 of 85
62 of 85
63 of 85
64 of 85
65 of 85
66 of 85
67 of 85
68 of 85
69 of 85
70 of 85
71 of 85
72 of 85
73 of 85
74 of 85
75 of 85
76 of 85
77 of 85
78 of 85
79 of 85
80 of 85
81 of 85
82 of 85
83 of 85
84 of 85
85 of 85
Â