WASHINGTON — Congressional Republican leaders Wednesday praised the Trump administration’s tax reform plan, saying in a joint statement the plan serves as “critical guideposts” for Congress and the administration’s goal to overhaul the American tax system.
“The principles outlined by the Trump Administration today will serve as critical guideposts for Congress and the Administration as we work together to overhaul the American tax system and ensure middle-class families and job creators are better positioned for the 21st century economy. Lower rates for individuals and families will allow them to keep more of their hard-earned money and empower them to invest more in their future,” Senate Majority Leader Mitch McConnell, House Speaker Paul Ryan, Senate Finance Committee Chairman Orrin Hatch, and House Ways & Means Committee Chairman Kevin Brady said in the statement.
The leaders added, “Getting tax rates down for American companies, big and small, will create new jobs and make the United States a more inviting place to do business. With an eye toward fairness and simplicity, we’re confident we can rebuild our tax code in a way that will grow our economy, better promote savings and investment, provide our job creators with a competitive advantage, and bring prosperity to all Americans.”
However, Senate Democratic leader Chuck Schumer slammed the tax plan and and criticized it as policy meant to benefit a wealthy New York real estate mogul like Trump.
“If the president’s plan is to give a massive tax break to the very wealthy in this country — a plan that will mostly benefit people and businesses like President Trump’s — that won’t pass muster with we Democrats,” Schumer said in a statement.
The White House sent a tax reform package to Congress that would reduce both individual and corporate income tax rates as well cut the number of individual income tax brackets to just three — 10 percent, 25 percent and 35 percent.
Additionally, the plan would repeal the estate tax as well as the alternative minimum tax and multiply the standard deduction by two, which would wipe away taxes on the first $24,000 of a couple’s earnings.
The majority of itemized tax deductions would also be eliminated, and deductions intended for mortgage interest and charitable contributions will remain in place.