The Trump Administration and Congressional Republican leaders released on September 27, 2017 a nine-page “unified framework for fixing our broken tax code” (the Framework) that includes specific goals for lower business and individual tax rates.
The Framework statement is the latest product of tax reform discussions (business tax reform and individual tax reform) by a working group known as the “Big 6” – consisting of Treasury Secretary Steven Mnuchin, White House National Economic Council Director Gary Cohn, House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnell (R-KY), House Ways and Means Committee Chairman Kevin Brady (R-TX), and Senate Finance Committee Chairman Orrin Hatch (R-UT) – and builds off an earlier July 27th joint statement.
The Framework calls for a 20-percent corporate tax rate, a new 25-percent rate for certain passthrough business income, and international reforms that include a territorial tax system and a one-time mandatory repatriation tax. The Framework also would replace the current seven individual tax brackets with three brackets with rates set at 12 percent, 25 percent, and 35 percent, while leaving open the possibility of providing a fourth higher tax bracket for upper-income individuals to meet President Trump’s goal of ensuring that tax reform benefits the middle class and not “the wealthy.”
More details on the latest developments can be found here.