Harrisburg, PA – President Trump announces his plan to cut personal and corporate tax rates, in a move the administration says will spur economic growth north of 3%, a level never reached in the last 8 1/2 years.
“We’ve helped to rebuild countries all over the world. It’s time we get involved in rebuilding our country.” the President said.
The administration’s said previously they are looking to double the personal exemption for individuals and married couples, meaning more middle-income earners will have a reduction in their federal income tax.
Other cuts in the plan would bring the corporate tax rate down to 20% from 35%, and would look to allow the repatriation of corporate profits made overseas by US firms. There’s an estimated $2-$4 Trillion in profits sitting in corporate bank accounts outside the United States.
In his remarks, the President noted his administration has cut more regulations than any other first-year president, the stock market values have increased $5 Trillion over the last 11 months, employment is up, and he stressed that a new infrastructure plan will be released soon.
The President said his plan would reduce the income brackets from 8 to 4, with those being 0%, 12%, 25%, and the upper bracket 30%. The upper bracket is currently 39.5%.
His plan would also eliminate the estate tax, which is currently applied to estates with a valuation over $5 million. But many say this forces many family run businesses and farms to be sold to pay the estate tax due for those estates over the $5 million level, which is not hard to hit, when an estate holds a lot of land, or a functioning business.
In a major move to help manufacturers, the President’s Tax Plan would allow businesses to write off 100% of the cost of new equipment in the year they buy it.