Lowers Rates for individuals and families: Our plan reduces the current seven tax brackets to five; Zero, 12%, 25%, 35%, and 39.6%
Doubles the Standard Deduction: The framework roughly doubles the standard deduction so that typical middle-class families will keep more of their paycheck.
Enhances the Child Tax Credit: Establishes a new “Family Credit” that includes an expanded Child Tax Credit that is increased from $1,000 to $1,600 per child to help parents with the cost of raising children, and it provides a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.
Eliminates Loopholes for the Wealthy, Protects Bedrock Provisions for Middle Class: To provide simplicity and fairness, our plan eliminates many itemized deductions that are primarily used by the wealthy, but retains tax incentives for home mortgage interest and charitable contributions, as well as tax incentives for work, higher education, and retirement security.
Creates a New Lower Tax Rate and Structure for Small Businesses: The framework limits the maximum tax rate for small and family-owned businesses to 25%; significantly lower than the top rate that these businesses pay today.
Lowers the Corporate Tax Rate to Create Jobs and Promote Competitiveness:So that America can compete on level playing field, our plan reduces the corporate tax rate to 20%. This is below the 22.5% average of the industrialized world.
Allows “Expensing” of Capital Investments to Boost the Economy: The framework allows, for at least five years, businesses to immediately write off (or “expense”) the cost of new investments, giving a much-needed lift to the economy.
Moves to an American Model for Competitiveness: Ends the perverse incentive to offshore jobs and keep foreign profits overseas. It levels the playing field for American companies and workers.
Brings Profits Back Home: The framework brings home profits by imposing a one-time, low tax rate on wealth that has already accumulated overseas so there is no tax incentive to keeping the money offshore.