Continuing the recent flurry of leaks of the Trump tax plan set to be unveiled tomorrow, Axios reports that “GOP leaders have agreed to raise the lowest individual tax rate from 10 to 12 percent, paired with doubling the standard deduction.”
As previously leaked, the plan will also collapse the number of brackets from seven to three, while the standard deduction is set to almost double to $12,000 for a single filer and $24,000 for married couples, which means that Trump can correctly argue that many more low income earners would pay no tax under his plan. Also, as previously noted, the top tax bracket would fall from 39.6% to 35%.
According to Axios, Trump plans to sell the proposal tomorrow as a populist “tax cut” but notes that “as recently as yesterday top Republicans on Capitol Hill were nervous as they got word that Trump wasn’t entirely thrilled with the product that had been hashed out in immense secrecy for weeks with two members of his administration, Gary Cohn and Steven Mnuchin, working with GOP leaders.” However, that changed last night when Trump reportedly has come around to supporting the framework, “despite his misgivings about the corporate rate not being low enough and about the political risks of raising the lowest rate.”
This post was published at Zero Hedge on Sep 26, 2017.
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