Over the past twenty years or so, Americans have seen the number of deductions they could claim on their federal income disappear. It was a way that Democrats could raise tax revenue to help them spend more of our money on many special interest projects and foreign aid. Medical deductions also were reduced so that you had to pay more out of pocket before you were allowed to claim any medical expenses as a deduction.
President Trump on Wednesday plans to call for a significant increase in the standard deduction people can claim on their tax returns, potentially putting thousands of dollars each year into the pockets of tens of millions of Americans, according to two people briefed on the plan.
The change is one of several major revisions to the federal tax code that the White House will propose when it provides an outline of the tax-overhaul pitch Trump will make to Congress and the American people as he nears his 100th day in office.
Trump will call for a sharp reduction in the corporate tax rate, from 35 percent to 15 percent. He will also propose lowering the tax rate for millions of small businesses that now file their tax returns under the individual tax code, two people familiar with the plan said.
Additionally, Trump is proposing cutting corporate tax rates from 35% to 15%. Critics are already saying that he’s doing it because of his own businesses. In reality, the goal is to give corporations and businesses more money so they will hire more people or pay their existing people more. Either one would give a boost to the economy. The more people working, the more taxes are being paid and the more money people make, they more taxes they pay.