adminTreasury Secretary Steven Mnuchin and U.S. National Economic Director Gary Cohn revealed Trump’s planned tax reform at the White House yesterday, in what is being referred to as “the biggest individual and business tax cut in American history.” The proposed changes aim to grow the economy and create millions of jobs, simplify the tax code, provide tax relief to families, and lower the business tax rate. Specifically, the plan outlines the changes below:
Individual Reform:
Tax relief for American families, especially middle-income families:
- Reducing the seven tax brackets to three tax brackets of 10 percent, 25 percent, and 35 percent
- Doubling the standard deduction
- Providing tax relief for families with child and dependent care expenses
Simplification:
- Eliminate targeted tax breaks that mainly benefit the wealthiest taxpayers
- Protect the home ownership and charitable gift tax deductions
- Repeal the Alternative Minimum Tax
- Repeal the death tax
Repeal the 3.8 percent Obamacare tax that hits small businesses and investment income
Business Reform:
- 15 percent business tax rate
- Territorial tax system to level the playing field for American companies
- One-time tax on trillions of dollars held overseas
- Eliminate tax breaks for special interests
The reform proposal concluded saying, “Throughout the month of May, the Trump Administration will hold listening sessions with stakeholders to receive their input and will continue working with the House and Senate to develop the details of a plan that provides massive tax relief, creates jobs, and makes America more competitive—and can pass both chambers.”
While there is no mention of the credit union tax status, the LSCU Advocacy Team will remain vigilant during this process. The administration’s mention of eliminating tax exemptions for special interests is very broad, and we need to be ready to act to maintain the credit union exemption.
