Sept. 26 (UPI) — In a speech Wednesday in Indiana, President Donald Trump is expected to announce concrete plans to reform the nation’s tax code.
Passing a tax reform bill into law would be Trump’s first major legislative achievement since taking office. His administration has already worked out some of the suggested changes with Republican congressional officials, specifically to increase the lowest individual tax rate from 10 to 12 percent and double the standard deduction, Axios reported.
For corporations, the proposed tax plan would reduce the tax rate from 35 percent to 20 percent and would allow businesses to write off capital spending for at least five years.
Trump has long touted the need to simplify the tax code. The proposal aims to do that by pushing for the elimination of the estate and alternative minimum taxes and reducing the number of individual taxable income brackets from seven to three.
Those brackets will be broken down at 12 percent, 25 percent and 35 percent, Bloomberg reported. Congress may decide to create a fourth bracket above 35 percent.
The New York Times reported that Republican leaders in the House and Senate have agreed on the proposal.
Trump has said his proposal will be the biggest tax cut in U.S. history, specifically slashing rates for the middle class.