Today the White House outlined its proposal for tax reform and rate reduction. Unveiling the plan, White House Chief Economic Adviser Gary Cohn touted the plan as one of the greatest tax reductions in United States history. The White House plan would slash tax rates for businesses to 15% from as high as 35%, and would reduce top individual rates from 39.6% to 35%. In addition, the standard deduction would be doubled.
The White House proposal would eliminate the alternative minimum tax and federal estate tax, and would allow US companies to pay tax on a territorial basis, rather than on their worldwide income.
The plan does not include the much ballyhooed “border adjustment tax” previously discussed by the GOP Congress.
The plan will need to be approved by the House of Representatives, then sent to the Senate. Treasury Secretary Mnuchin indicated that the GOP may seek Senate approve of the House bill through the “reconciliation” process. That process would allow twenty-four hours of debate in the Senate without the threat of a filibuster.