By Tom Anderson, CNBC–
“It has less detail than the plan released by the Trump campaign,” said Scott Greenberg, an analyst at the Center for Federal Tax Policy at the Tax Foundation.
Here’s what we know:
Trump’s revised proposal would reduce the current seven tax brackets to three with rates of 10 percent, 25 percent and 35 percent.
Those rates are slightly different than those Trump proposed during the campaign. The new plan increases the top rate to 35 percent from 33 percent in the old plan and lowers the bottom rate to 10 percent, from 12 percent in the old plan.
The one-page plan doesn’t spell out exactly where each tax bracket will fall like his original tax proposal.
The standard deduction would nearly double under Trump’s proposal, but it’s less than what he offered during the campaign.
“We are going to double the standard deduction so a married couple wouldn’t pay any taxes on the first $24,000 income they earn. So in essence, we are creating a zero tax rate — yes, a zero tax rate — for the first $24,000 that a couple earns,” said Gary Cohn, head of Trump’s National Economic Council, during the news conference rolling out the new plan.
For 2017, the standard deduction for single filers is $6,350 and $12,700 for married couples filing jointly. During the campaign, Trump had proposed increasing the standard deduction to $15,000 for single filers and to $30,000 for married joint filers.
Initially, Trump proposed capping itemized deductions at $100,000 for single filers and $200,000 for married couples filing jointly. The new plan doesn’t talk about caps except to say the administration wants to “