INDIANAPOLIS — President Donald Trump announced details of the GOP tax plan during an invite-only event in Indianapolis Wednesday afternoon.
The White House issued bullet points, outlining the plan. You can see the full release from the White House below.
AN AMERICA FIRST TAX RELIEF PLAN: President Donald J. Trump, the House of Representatives Ways and Means Committee, and the Senate Finance Committee are proposing vital tax relief to strengthen the middle class, grow the economy, and unleash America’s economic comeback.
· We are calling for a dramatic tax cut, which includes:
o A larger zero tax bracket;
o Lower tax rates for individuals, providing relief to Middle Class American families;
o Lower small business tax rates, giving a boost to millions of American businesses and farms; and
o Lower corporate tax rates, making American business more competitive.
· Tax cuts, like those in President Trump’s unified framework, boost economic growth.
o Since Vice President Pence’s 2013 tax cuts, as Governor of Indiana, unemployment in Indiana has been cut in half and more than 200,000 jobs have been created.
o President Reagan’s 1986 corporate income tax cut contributed 3.3 percent to economic growth over ten years, according to the Tax Foundation.
A TAX CUT FOR WORKING AMERICANS: We are laying out a tax-relief framework that will unburden America’s Middle Class.
· Double the standard deduction so that more income is taxed at zero percent.
o The first $12,000 of income for an individual and $24,000 for a married couple will be tax-free.
· Consolidate the seven existing tax brackets for taxable income to only three brackets: 12 percent, 25 percent, and 35 percent.
· Increase and expand the Child Tax Credit to benefit more middle-income families and eliminate the marriage penalty.
· Create a new $500 tax credit for those caring for an adult dependent or elderly loved one.
SIMPLIFY THE TAX CODE: We will simplify tax filing so Americans can file their returns on a single sheet of paper.
· The vast majority of Americans will be able to file their taxes on a single sheet of paper.
o American individuals and businesses spend more than 6 billion hours complying with the tax code, according to the National Taxpayer Advocate.
· The plan repeals the Alternative Minimum Tax, which requires many taxpayers to do their taxes twice.
· The plan ends the job killing “Death Tax.”
LOWER THE CRUSHING BUSINESS TAX RATES: We will cut tax rates for American business and make American business competitive again.
· The plan will reduce the corporate tax rate to 20 percent.
o The United States corporate income tax rate is the highest in the Organisation for Economic Co-operation and Development (OECD), and has been above the OECD average for almost 20 years.
o The United States corporate income tax rate is more than 10 points higher than China’s, according to the Congressional Budget Office (CBO).
· The plan will also reduce the top tax rate paid by sole proprietors, S corporations, and partnerships to 25 percent.
· For the next five years, American businesses will be able to immediately write off the cost of their equipment and other capital investments.
· Economists agree that America’s corporate tax rate harms America’s workers by keeping their wages down.
o More than 70 percent of the corporate tax burden falls on American workers, according the CBO.
BRING WEALTH BACK: We are proposing an “American Model” that will bring back trillions of dollars held overseas and restore America’s competitive edge.
· Profits that have accumulated offshore will be subject to a one-time low tax rate, thereby ending the tax incentive to keep those profits offshore.
· To avoid paying high U.S. corporate taxes on foreign profits, American companies have often reinvested their money abroad instead of repatriating it to U.S. shores.
o Companies hold an estimated $2.8 trillion in earnings offshore, according to Audit Analytics.
· This plan will stop the “Offshoring Model,” which penalizes companies for incorporating in the United States.
Indiana Democrat Joe Donnelly Responds
U.S. Senator Joe Donnelly (D- Indiana) attended the presidential visit Wednesday afternoon.
Following Mr. Trump’s speech, Senator Donnelly released the following statement on the GOP Tax Plan…
“I work for Hoosiers, not President Trump or any political party. As it stands, the framework released today is missing many details that will be critical to determining whether working- and middle-class families truly stand to benefit. These Hoosiers will be foremost in my mind as I continue to engage with my colleagues in the Senate and also with the White House to try to craft a tax reform bill that will provide greater economic security to these families and also create and protect jobs here in Indiana.”
Indiana Rep. Larry Bucshon to “Evaluate” Plan
Rep. Larry Bucshon (R – IN 8th) was not present at Wednesday’s event. However, following the president’s speech, the 8th district congressman (who serves Dubois and surrounding counties), released the following statement….
Hoosiers know that our nation’s tax code is broken and stuck in the past. The current system leaves working families and American businesses at a disadvantage. We need a tax code that is simpler, fairer, flatter, and puts America first. Today’s framework is a step forward towards delivering real middle-class tax relief and leveling the playing field for American businesses. As the legislative process moves ahead, I look forward to hearing the concerns of 8th District Hoosiers as I evaluate any tax reform proposal.”