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KSM Blog | Katz, Sapper & Miller CPA

White House Unveils Proposed Tax Plan

Posted 4:00 AM by



On Wednesday, April 26, Treasury Secretary Steven Mnuchin and Director of the National Economic Council Gary Cohn announced President Trump’s proposed tax plan. Secretary Mnuchin and Director Cohn did not release many details of the plan, but what was announced could have dramatic effects on both individuals and businesses if the proposals become law.

On the individual side, President Trump’s proposed plan would:

  • Reduce the top marginal rate from 39.6 percent to 35 percent
  • Reduce the number of tax brackets from seven to three
  • Double the standard deduction but eliminate most other deductions
  • Repeal several taxes such as the alternative minimum tax and the estate tax

President Trump’s business plan introduced a few notable changes, including:

  • A reduction in the corporate tax rate to 15 percent (although the details for how these cuts will be paid for were only vaguely addressed in Wednesday’s announcement)
  • A reduction in the tax rate to 15 percent for small businesses (however, the proposed plan did not include a detailed explanation of how this tax rate reduction would work)
  • A provision that would only require businesses to pay taxes on income earned within the U.S., which would exclude foreign sales

Although Wednesday’s announcement merely provided the broad strokes of President Trump’s tax plan, more details are expected to emerge as the summer progresses. 

About the Author
Ryan Miller is a partner in Katz, Sapper & Miller’s Tax Services Group. Ryan provides consulting services on a variety of technical tax matters, with an emphasis on international tax, oversees tax compliance and handles tax controversies. His experience includes entity taxation, among other areas.

 

About the Author
Alex Szarenski  is a member of Katz, Sapper & Miller's Tax Services Group. Alex's primary responsibilities include providing analytical research and planning services in the areas of individual and business taxation. He also provides compliance services and technical review of federal tax issues. 

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