On Wednesday, the Trump administration revealed the broad strokes for its plan to overhaul the tax code and cut taxes for middle-class Americans and small business. Treasury Secretary Steven Mnuchin and chief economic adviser Gary Cohn outlined the goals of the tax relief plan as simplifying the tax code, lowering the business tax rate, growing the economy, and providing relief for middle-income families.
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CNBC reports that the plan will simplify the number of tax brackets down from seven to three, double the standard deduction, and repeal the Alternative Minimum Tax. The new tax plan would also eliminate the death tax, something NFIB continues to advocate for.
Significantly, President Trump’s plan calls for reforming business taxes and setting the business tax rate at 15% while also employing a territorial tax system, which secretary Mnuchin said would update the United States’ tax code to be more competitive with other countries that have adopted similar plans over the last few decades.
“We applaud President Trump for continuing to push for tax reform that would provide relief to businesses of all sizes and structures,” said NFIB president and CEO Juanita Duggan in a press release. “Small business makes up nearly half of the economy and nearly half the jobs. If the goal of tax reform is to boost the economy, then tax reform must start with small business. The President’s proposal for rate parity would make American businesses immediately more competitive. A low, single business tax would supercharge the economy, and create an even playing field for small businesses and large corporations. We are very happy that the White House has listened to small businesses.”
Secretary Mnuchin emphasized during the meeting that members of Congress had already been briefed and that that more specific details would be clarified in the future. He also mentioned continuing a series of listening sessions to receive input from other industries so the new tax plan works for all Americans.
Related:
NFIB: Tax Reform Starts with Small Business
Small Business Taxes Under Pres. Trump: What Will The System Look Like?
