The timing of the President's tax reform roll out isn't just a byproduct of the the failure of the repeal and replace of the Affordable Care Act - it actually is right on schedule according to the timeline President Trump laid out this spring.
The key to understanding what to expect if meaningful tax reform is passed took place on April 21st, when President Trump signed an executive memo ordering a series of reviews by related agencies (most notably the Treasury Department and IRS).
There were two key timelines in the memo:
- A 60-day initial timeline with first findings for reform
- A 150-day timeline for final recommendations
The 150th day occurs on September 18th.
Based the initial findings, here was the President's first framework for tax reform:
Three personal tax brackets rather than seven... A flat corporate tax rate... A near doubling of the standard deduction...
These are the specifics that we're aware of:
- Flat corporate rate of 15 percent
- Personal tax rates 10 percent, 25 percent, or 35 percent
- End of the 3.8 percent ACA tax
- Standard personal deduction of $12,000 per individual/$24,000 married
- End of the Alternative minimum tax
- End of the Estate tax
- One-time repatriation tax cut for US companies
- Limits deductions to mortgage interest and charitable giving (on the personal side)
- Investment tax levels would remain at current levels
Tomorrow President Trump will kick off the tax reform effort in Missouri, after making a visit to Harvey impacted areas.
More to come...