It may be the biggest tax cut in history. announced a tax reform plan on April 26.
The plan will cut corporate tax rate to 15 percent from 35 percent.
The personal tax code will be simplified, collapsing seven tax brackets to three: 10 percent, 25 percent, and 35 percent.
It will double the standard deduction for married couples to $24,000.
“The larger standard deduction also leads to simplification, because far fewer taxpayers will need to itemize, which means their tax form can go back, yes, to that one simple page that I talked about earlier. Families in this country will also benefit from tax relief to help them with child and dependent care expenses,” said.
Most other deductions will be slashed, helping offset the tax cut. Exceptions are deductions for charitable giving and mortgage interest payments.
It will repeal the estate tax, the alternative minimum tax, and the 3.8 percent “Obamacare” tax on investment income.
