The Trump administration is expected to propose a tax reform plan that includes a major increase in the standard deduction individuals can claim on their tax returns, providing a significant tax cut for middle-income Americans.
According to what two people briefed on the plan told the Washington Post, the president is expected to put forth a proposal on his 97th day in office that includes a deduction standard that is significantly higher than the $6,300 it is currently for individuals. During the campaign, Trump proposed raising it to $15,000 for single-filers.
The plan will also slash the corporate tax rate from 35 percent to 15 percent for both large and small companies, including those that pay through the personal income code.
Because the administration has repeatedly said that filing taxes has become too complicated and Treasury Secretary Steve Mnuchin has floated the idea of people filing their returns on a “large postcard,” the plan also reportedly calls for simplifying the tax filing process.
Mnuchin and National Economic Council Director Gary Cohn paid a visit to lawmakers on Capitol Hill Tuesday to brief them ahead of the administration’s formal announcement Wednesday.