The GOP Tax Plan Could Force Trump to Break His Promise to Seniors
Big changes are afoot in Washington. After more than 10 months in the White House, tax-reform momentum is building for President Trump after House Republicans passed, by a 227-to-205 vote, the Tax Cuts and Jobs Act. Following the failure of Congress to come to an agreement on healthcare reforms earlier this year, Trump is looking for his first major legislative victory as president, and he views tax reform, a key campaign pledge, as a means to get it.
While you can read a more thorough summary of what the House GOP tax bill entails, its primary focus is on cutting taxes for middle-class families, as well as corporations. Individual taxpayers would see a notable simplification of the U.S. tax code, with fewer income-tax brackets, a beefier standard deduction, and far fewer deductions and credits.
As for corporations, the peak marginal income-tax rate would be lowered to 20% from 35%. The thinking here is that putting more money into the pockets of businesses will lead to job creation and higher wages. Since the U.S. economy relies on consumption for about 70% of GDP, both lower taxes on the middle class and corporations should help boost spending, as Republicans see it.
Source: Fool.com
