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President Trump: Tax reform is centered on helping American families

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Reuters

Commerce Secretary Wilbur Ross, however, said Tuesday that would not be the case.

Republican leaders in Congress were equally sanguine. This loophole would slash the tax rate on the profits from these businesses by more than a third. Trump's speech Wednesday comes the same day that Republicans are set to release some details of their plan.

Mr. Trump's IN remarks are expected to kick off at 3 p.m. "We want tax reform that is pro-growth, pro-jobs, pro-worker, pro-family and, yes, tax reform that is pro-American", he said.

"There's a lot of appetite on the Republican side" for repealing the estate tax, Rep. Tom Reed, R-N.Y., a member of the Ways and Means Committee, said before the meeting at the White House.

After the failure of Republicans to repeal the Affordable Care Act, passing tax legislation has become all the more crucial, and it is no accident that the Trump administration has chosen the Hoosier State, a reliably Republican part of the country.

It is the Republican philosophy on healthcare all over again. "We're punishing companies under our codes for being in the United States", Trump said. The last one was passed in 1986 under Republican President Ronald Reagan. About 40 percent say that taxes will likely rise for middle-class families under a GOP tax reform plan, while 34 percent say they think their own taxes will likely go up, compared to just 21 percent who expect a tax break.

He said the White House would determine the timetable for releasing more information, "but definitely this week".

The plan would almost double the standard deduction to $12,000 for individuals and $24,000 for families.

Slashing the corporate tax from 35 percent to 20 percent.

But under Trump's plan, while a person making $9,325 or less would be bumped up to the 12% tax bracket, the standard deduction would be $12,700, meaning they wouldn't see their effective tax rate increase.

More than 7 in 10 adults say the tax system already tends to favor the wealthy more than the middle class, with a 55 percent majority who feel this "strongly".

Trump said Tuesday some of the components included doubling the standard deduction used by families and increasing the child tax credit. "Until New York completely overhauls its tax code, removing this provision will strip primarily middle- and low-income New Yorkers of their only real tax relief".

The tax plan now heads to the House and Senate tax writing committees to work out the details. The Committee for a Responsible Federal Budget, a nonpartisan group that analyzes spending and taxes, said Republicans had only identified about $3.6 trillion in offsetting revenues, meaning the cost to the federal deficit could be in the $2.2 trillion range. "The current tax system is a colossal barrier, standing in the way of America's economic comeback, because it can be far greater than it's ever been".

U.S. economists are increasingly anxious about risks to the economy, though they see little chance of a recession near term. The Tax Policy Center found that each one of those households would get an average annual tax cut of $175,000.

Repeal of the estate tax and the generation-skipping transfer tax.

Eliminate most itemized deductions, including the deduction for state and local taxes, while preserving the deductibility of mortgage interest and charitable contributions.

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