During his campaign, Trump made it clear that the tax system needed massive reform that would lower taxes for businesses and individuals in order to benefit the middle class. Today, we received insight into the specifics of what the much needed, pro-American reforms Trump has in mind for the country.
Trump’s tax reform can be boiled down the following:
- Incentivize Companies
- Reduce Middle-Class Taxes
Trump emphasized the need to lower the statutory tax rate which is currently at 35%. Of all industrialized countries in the world, the US has one of the highest rates in the world. By lowering small business and corporate taxes, companies will be incentivized to bring jobs back to the US, make products in the US, and improve stock price and profitability.
Reduce Middle-Class Taxes
Trump has proposed reducing the number of tax brackets from 7 to 3 with rates set to 10%, 25%, and 35%. By implementing the tax changes for small businesses and corporate businesses, Americans would get to keep more of the money they earn rather than paying it in taxes. As Trump put it: