President Trump signed a Republican inspired tax reform bill today at the White House, consisting of $3.2 trillion in tax cuts for Americans and businesses before his departure to his resort at Mar-a-Lago, Florida to spend time with his family for the upcoming holidays.
Under the new tax reform bill, the standard deduction and the Child Tax Credit is doubled while the corporate tax rate is cut from 35 to 21 percent, representing an historic drop in the tax rate.
Combined, the tax cuts are estimated to cost $1.5 trillion in deficit spending over the next decade.
Although the majority of the individual tax cuts will sunset in 2026, the corporate tax rate will remain intact.
President Trump said today that lowering the corporate tax rate to 21 percent means more products will be made in the U.S.A. and predicted $4 trillion will be brought back from overseas.
“We’re going to bring back our companies” President Trump said.
President Trump explained that one of the biggest things in the bill is expensing, allowing businesses to deduct 100 percent of the cost of their capital investments in the year the investment is made.
Admitting that he doesn’t have to travel much to sell the tax plan, President Trump said that the tax bill is selling itself.
“It’s becoming very popular, but I think it will really- you’ll see something on February 1st, when they open up the paycheck” President Trump said.
Following the passage of the Republican tax bill on Capitol Hill this week, Senate Minority Leader Chuck Schumer criticized Republicans for failing to work in a bipartisan manner with Democrats on the new tax reform bill.
President Trump said today that Democrats will “regret” not supporting the new tax reform bill whose tax breaks are weighted more heavily towards wealthiest Americans and corporations.
Based on the new tax reform, the top U.S. individual tax rate drops under the plan from 39.6 to 37 percent and the exemption within the estate tax is doubled from 5 to over 10 million while the 40 percent tax at time of death remains in place.
“I think the Democrats will really regret- the Democrats already regret it. You know, they have their typical thing- ‘It’s for the rich.’ They know that’s not true. And they’ve been called out on it by the media, actually. But the Democrats very much regret it” President Trump said from the White House.
President Trump and Congress will soon have to confront a stopgap spending bill, approved by Congress Thursday evening that keeps the U.S. government operational until January 19th but prevents automatic spending cuts to kick in due to the new tax reform bill.
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