Trump announced his new tax plan today in a speech in Indianapolis. The plan would cut the corporate tax rate from 35% to 20%, lower the top individual tax rate from 39.6% to 35%, repeal the estate tax, double the size of standard deductions for married couples and individuals, and expand child tax credits. The standard reduction for individuals would now be $12,000 and $24,000 for married couples. The child tax credit would increase from $1,000 to an unspecified amount, and create a new $500 tax credit for dependents, such as the elderly, who are not children. Trump considers the new tax reform as a "win" for the middle class and a tool to stimulate economic growth, and insisted that his new tax plan would benefit the middle class and not the rich. However, the Trump administration did not give a cost estimate for the new tax plan, and that those who are in favor of the new tax plan claims that the economic growth will compensate for lost revenue.
Trump's new tax reform is somewhat similar to Reagan's tax plan, where they both cut the corporation and rich's taxes and believed that the economic growth will compensate for the lost revenue.
What are your thoughts on Trump's new tax reform? Do you think Trump's new tax plan would produce similar results to Reagan's, or will his plan create positive outcomes? If you could decide on what the new tax plan would be, what changes would you propose?
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