Throughout his campaign and on numerous occasions during his first few months in office, President Donald Trump has promised to deliver tax cuts to both corporate America and everyday people.
“I want to cut the hell out of taxes,” Trump said at a rally in Nashville, Tennessee on Wednesday evening. “But, but before I can do that, I would have loved to have put it first I’ll be honest, there’s one more very important thing that we have to do. And we are going to repeal and replace horrible disastrous Obamacare.”
While Trump’s actual tax plan has yet to take shape, he has previously told manufacturing executives that he wants to slash the corporate tax rate from its current level of 40%, one of the highest in the world, to between 15% and 20%.
As for personal income taxes, Trump has said he wants to overhaul the entire system to put money back in the pockets of American citizens. He has called for reducing the amount of income tax brackets from its current number of seven to four while eliminating several deductions. Trump says his plan would provide ” the lowest tax rate since before World War II.”
Additionally, he wants to do away with the alternative minimum tax, a complicated surtax that raises rates on middle- to upper-middle-class earners. Trump’s 2005 tax return that was released earlier this week showed that tax cost him $US31 million that year.
While these plans will put money back into the pockets of Americans, they will likely be on hold for a while as the battle over the repeal and replacement of Obamacare appears to just be getting started.