Just days before his 100th day in office, President Donald Trump released his administration’s tax reform proposal. For individuals, the 7 tax bracket system will be reduced to three brackets of 10 percent, 25 percent, and 35 percent. Describing the plan’s details, Director of the National Economic Council Gary Cohn states that “a married couple won’t pay any taxes on the first $24,000 of income they earn” (para.8). In addition, the plan includes tax breaks for child care as well as for care of elderly dependents. For corporations, the income tax rate will be reduced to a 15% rate from a 35% rate.
Appearing on CBS News, Treasury Secretary Steven Mnuchin explained that the cuts will be paid for by “economic growth and by a reduction of many many deductions and special interests.” Secretary Mnuchin continued to state that he feels “confident” that “3 percent economic growth” will occur to offset the costs of the tax cuts.
Maya MacGuineas, the president of the Committee for a Responsible Budget, offers a negative take on the President’s tax proposal. Mac Guineas argues that President Trump’s “proposal is likely to worsen our country’s growth prospects by ballooning our record high national debt” (para.4). According to MacGuineas, the “plan could add over $5 trillion to the national debt over the next decade” (para.5).