( Daily Mail ) The Trump administration proposed an overhaul of the tax code on Wednesday that could allow many Americans to file their annual tax returns on a single sheet of paper – and cuts their taxes, eliminating them entirely on the first $24,000 of income earned by a married couple.
‘It’s a great plan,’ President Trump told reporters Wednesday after the blueprint that was scant on firm details was unveiled. ‘It’s going to put people back to work.’
National Council of Economic Advisers Chairman Gary Cohn complained during a White House briefing that low- and middle-income Americans ‘have been left behind by this economy’ and are ‘frustrated by a tax code that is so complicated they can’t even do their own taxes.’
‘In 1935 we had a one-page tax form consisting of 34 lines with two pages of instructions,’ Cohn recalled. ‘Today the basic 1040 form has 79 lines and 211 pages of instructions.’
As the tax code is simplified, he boasted, ‘far fewer taxpayers will need to itemize’ their deductions, which means their tax form can go back, yes, to that one simple page.’
Cohn said that Americans spend nearly 7 billion hours complying with tax requirements each year, and nearly 9 out of 10 of them can’t file their own returns without help.
Treasury Secretary Steven Mnuchin promised ‘massive reform and simplification,’ while Cohn said the ‘basic premise here is to simplify the tax system, lower rates, and make it easy.’
‘We don’t want to penalize people. We want to make the system very fair,’ Cohn said.
‘This isn’t going to be easy,’ he cautioned. ‘Doing big things never is.’
‘We will be attacked from the left and we’ll be attacked from the right, but one thing is certain: I would never, ever bet against this president. He will get this done for the American people.’
Overall, the Trump plan seeks a reduction in the number of income brackets, eliminates the death tax and slashes the corporate tax rate.
TRUMP TAX REFORM AT A GLANCE
Trump wants to cut the corporate tax rate from 35 percent to 15 percent
Administration is billing it as a tax cut that will help small businesses
List of priorities includes a childcare tax credit, as well but doesn’t say how much or who it would affect
Treasury Secretary says Trump plan will simplify taxes for middle class
Cuts are paid for by assumed 3 percent economic growth
Proposal gets rid of the death tax
It collapses income tax brackets into 3 – 10%, 25% and 35%
Doubles the standard deduction to $24,000 for married couples
Repeals a 3.8 percent Obamacare tax on small businesses
Asks for a one-time tax on trillions of dollars held overseas