The Republican Party revealed details on the newest tax plan for the nation Tuesday night. The plan already looks like the largest proposed tax overhaul in three decades and hopes to cut rates on businesses and the wealthy.
"If we do this, we will create millions of new jobs for our people, and bring many, many businesses back to our shores," President Trump said Tuesday, the night before the official plan debut. Trump also described the proposed overhaul as "massive tax cuts that our country desperately needs to thrive, to grow, to prosper."
According to NPR, the new plan would cut the top individual income tax rate down from 39.6 percent to 35 percent. The corporate rate would also decrease drastically to 20 percent. The plan also aims to create a 25 percent rate for "pass-through" businesses that are currently taxed at the individual rate.
FOX News reports that the Republican Party hopes to eliminate the estate tax, which is paid by those with multimillion-inheritances. This is despite Trump's pledge that it would not benefit the wealthiest Americans.
The plan allegedly is aimed to help families by “calling for an increased child tax credit and opening it to families with higher incomes”. The credit currently is $1,000 per child. A new tax credit of $500 is also being proposed to help pay for elderly care who are claimed as dependents by the taxpayer.
“After a decade of lost growth, hardworking American families know the status quo is unacceptable,” Senate Majority Leader Mitch McConnell, R-Ky., said in a statement. “They want to keep more of their hard earned money so they can make ends meet, provide for their children, and save for retirement.”
President Trump plans to give a speech detailing more of the plan Wednesday afternoon in Indianapolis.