Republicans in Washington are shifting focus to tax reform.
President Trump calls it simple economics; cut taxes and the economy grows.
He said, “By eliminating tax cuts and loopholes, well ensure benefits are focused on the middle class.”
During a speech in Indianapolis, the president laid out his framework for tax reform.
Among his ideas, he wants to cut the corporate tax rate from 35 percent down to 20. He also want’s to eliminate the lowest tax bracket of 10 percent and the highest of 39.5 percent. Doing so would reduce the number of tax brackets to three: 12, 25, and 35 percent. He also wants to double the standard deduction.
House Ways and Means Chairman Kevin Brady of Texas sees the plan as a strong start, saying, “My committee is ready to turn this framework into legislation.”
Republicans are hopeful tax reform will be an easy sell, and Democrats say they are willing to listen. Many lawmakers say though that reform will only happen if both parties work together.
Senator Bill Nelson, D-Flor., says, “If we can move forward on a bi-partisan way on income tax reform, and if so, it has a very good chance of passage.”
Fellow Democrat Senator Chuck Schumer says Republicans are only looking out for the wealthy.
“They’re going to be in for a rude awakening, the american people are going to rise up against this,” said Schumer
Congress will hold the first hearings on tax reform in October, and the White House says it wants Congress to vote by the end of the year.
The plan is already drawing support from a couple of Siouxland’s U.S. senators.
Senator John Thune, R-S.D., said, “I hope that there will be some Democrats who will work with us, because this is what they say they’re for. If they are really for middle class tax relief, why wouldn’t they join hands with us and make it a possibility for the American people?””
Seantor Chuck Grassley, R-Iowa, said “You called it a plan, he may call it a plan. It’s a broad outline. Like instead of having seven brackets, an individual will have three brackets. This framework as it should be called is just a broad outline, and I like that broad outline.”