Donald J. Trump proposes sweeping tax reform

Story by The Hill
Written by Jordan Fabian

The White House is proposing comprehensive reforms to the tax code that would wipe out most deductions and simplify the system into three tax brackets.

The plan unveiled Wednesday would cut the top personal income tax rate from 39.6 percent to 35 percent and double the standard deduction for taxpayers to $24,000.

The plan also lowers the tax rate for corporations and most small businesses to 15 percent, more than halving the current 35 percent corporate rate.

“Tax reform is long overdue,” National Economic Council Director Gary Cohn told reporters at the White House. "We have a once-in-a-generation opportunity to do something really big."

The White House plan is a set of principles with few details, but it’s designed to be the starting point of a major push to urge Congress to pass a comprehensive tax reform package this year.

It is similar to the plan from House Republicans but does not include a controversial border-adjustment tax that would have paid for reforms by imposing a new tax on imports.

The plan would repeal the alternative minimum tax for individuals and impose a one-time tax on corporate profits overseas that would allow companies to repatriate funds to the United States, something business believes would spark new investments.

It would eliminate all tax deductions aside from mortgage interest and charitable tax deductions, according to Treasury Secretary Steven Mnuchin.