President outlines tax cut; EO issued to reduce tax burden

Senior administration officials outlined President Trump’s tax proposals at a news conference in Washington, D.C. on April 26. For individuals, the White House proposed consolidating and reducing the tax rates to 10%, 25% and 35%. No income brackets have yet been developed for the proposed lower rates. The proposal also calls for doubling the standard deduction. Married couples would have a $24,000 standard deduction. The proposal calls for abolishing nearly all individual credits and deductions. The plan would eliminate all individual deductions except mortgage interest and charitable deductions. The plan also calls for unspecific tax relief for families with child and dependent care expenses. President Trump proposed to reduce the corporate tax rate and cut taxes on small businesses. The corporate tax rate would fall to 15%. Small and mid-size businesses will be eligible for the 15% rate. That would include partnerships, S corporations and sole proprietorships in which income is currently passed through to the owners at individual income tax rates.
In addition, the president has issued an executive order that requires the Secretary of the Treasury to immediately review all regulations issued after December 31, 2015. The order requires the Treasury Secretary to identify any regulations that impose an undue financial burden on U.S. taxpayers, add undue complexity to the tax laws or exceed the statutory authority of the IRS. Under the order, the Treasury Secretary is also required to issue a preliminary report within 60 days of the order and within 150 days must submit recommendations to mitigate the burdens imposed by regulations identified in the preliminary report. The Treasury’s final report will be published in the Federal Register when it is submitted to the president. (Executive Order 13789, Identifying and Reducing Tax Regulatory Burdens, April 21, 2017.)
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